Why are used cars having same depreciation as brand new

[Watwheels]

COE of yester-years are high what. Ever thought of that? And you are comparing now at lowest. I also find it weird ppl mentioned so much about the facts but never notice what they mention.

[WangWang888]

if LTA can do away with loan. all car new or old 100% cash upfront. You will see (new/old)car prices drop.

It will never never never ever happen...

[Throttle2]

In T2's term, it doesn't matter new or old, high or low coe, same or different depreciation, full cash or nothing matter. Period.

Dont like that say leh.

 

Full cash also got, big amount or small amount.

For example if $100-200k is small amount

If $400-500k is bigger amount.

 

Nowadays i down and out, cant afford liao

 

Give chance plse

[yishunite]

Dont like that say leh.

 

Full cash also got, big amount or small amount.

For example if $100-200k is small amount

If $400-500k is bigger amount.

 

Nowadays i down and out, cant afford liao

 

Give chance plse

If you take a minimum loan, plus enjoy their finance "rebate", you do the sums its almost the same as full cash upfront. IOW it's like getting near zero interest loan. That kind should take, put the balance in FD also earn more than paying full cash.

[uniquely_ad]

That’s why it’s best to do direct sell to potential buyer without all the middle man. But of course must do everything on your own.

 

If I’m a buyer or seller. Best to do direct.

[Reo]

Actually, it's MAS, not LTA.

 

if LTA can do away with loan. all car new or old 100% cash upfront. You will see (new/old)car prices drop.

 

[Vinceng]

Annual depreciation for most used cars are higher than new cars but people buy them as the upfront purchase price is lower than a new car, hence the lower loan amount.

[RogerNg_185295]

But the interest rate almost 3% plus....Very high

Annual depreciation for most used cars are higher than new cars but people buy them as the upfront purchase price is lower than a new car, hence the lower loan amount.

 

[Vinceng]

A new Altis costs $90K now. Scrap value $10K. Hence annual dep $8K.

 

But there are people who choose to buy a used 5-year old one at $56K which translates to almost $10K annual depreciation.

 

http://www.sgcarmart.com/used_cars/info.php?ID=767703&DL=1000

 

There are many reasons - lower upfront purchase price, lower loan, or unable to get high loan to buy new car.

Edited September 18, 2018 by Vinceng

[Mann123]

Annual depreciation for most used cars are higher than new cars but people buy them as the upfront purchase price is lower than a new car, hence the lower loan amount.

 

plus if someone buys 3-year-old+ car can get full term loan which makes the installments lower. In the end, it goes to affordability for monthly installments and down payment. There are people who get the personal loan for downpayment and car loan for the balance amount.

[Mann123]

That’s why it’s best to do direct sell to potential buyer without all the middle man. But of course must do everything on your own.

 

If I’m a buyer or seller. Best to do direct.

 

A direct sale is easy and feasible if seller car is left with less than 3-4 years.  For 1 to 3-year-old cars its really hard to get potential direct buyer because of the finance issue. If someone don't have finance issue they will go and buy new car compares to 1to 3-year-old car (specially in current low coe scenario) .

 

If the buyer has financial issues they need balloon scheme,  10% downpayment scheme etc which direct seller cant provide and he has to go to used car dealers.

[RogerNg_185295]

A new Altis costs $90K now. Scrap value $10K. Hence annual dep $8K.

 

But there are people who choose to buy a used 5-year old one at $56K which translates to almost $10K annual depreciation.

 

http://www.sgcarmart.com/used_cars/info.php?ID=767703&DL=1000

 

There are many reasons - lower upfront purchase price, lower loan, or unable to get high loan to buy new car.

You cannot calculate like that.your dep for new altis is based on liner depreciation and owner drive till scrap. In reality that owner may wanna drive his new car for 3 yrs. That's when he will suffer a huge loss.

 

If he bought a 2nd hand car,the loss is not that high.

 

You have to see things from different perspective , not from your own perspective. You only see from one side and then jump to conclusions. your post on freebies from SE is absolutely amazing. I think you are aware of that. Think before you post. Give me dislike points if you unhappy with my frank comments

[13177]

A new Altis costs $90K now. Scrap value $10K. Hence annual dep $8K.

 

But there are people who choose to buy a used 5-year old one at $56K which translates to almost $10K annual depreciation.

 

http://www.sgcarmart.com/used_cars/info.php?ID=767703&DL=1000

 

There are many reasons - lower upfront purchase price, lower loan, or unable to get high loan to buy new car.

Maybe the buyer prefer that generation altis rather than the current altis? Lol.

[Inlinefour]

You cannot calculate like that.your dep for new altis is based on liner depreciation and owner drive till scrap. In reality that owner may wanna drive his new car for 3 yrs. That's when he will suffer a huge loss.

 

If he bought a 2nd hand car,the loss is not that high.

 

You have to see things from different perspective , not from your own perspective. You only see from one side and then jump to conclusions. your post on freebies from SE is absolutely amazing. I think you are aware of that. Think before you post. Give me dislike points if you unhappy with my frank comments

 

Is it true that sell/scrap/export car just before 5 year mark for 1st owner depreciation lower?

 

Or is this a myth from car salesman 

 

The first 3 years is the highest loss right 

[Vinceng]

Been monitoring the price of this almost new used Mitsubishi Attrage – very interesting.

 

The owner paid $61,999 in Feb, secured COE at $26K and  registered the car on 8 March 2019 (Year of Manufacture 2018 old stock).

 

https://www.sgcarmart.com/used_cars/info.php?ID=820518&DL=1000

 

Advertised in sgcarmart at end April for $59,800 when a new Attrage Style was selling at $66,999.

 

Early May when new Attrage price increased to $69,999 (May 1^st bid), price of the used Attrage was raised to $$61,800

 

It was listed under 'Popular Used Cars' for the first 2 weeks, which means there was likely many offers.

 

Last week, price was reduced to $60,800.

 

Now that the COE has crashed to $27,000 (May, 2nd bid), a brand new Attrage style is selling at $61,999.

 

I don’t know if anyone would want to purchase an almost 3 mth old used Attrage at $60,800, when a brand new one costs just $1,000 more.

 

Another interesting one to look out for - 29 year old Mercedes 190E -  https://www.sgcarmart.com/used_cars/info.php?ID=825690&DL=3575

 

Within less than 2 weeks, price was raised from $44,800, to $46,800 to $48,448 now.

 

 

 

Edited May 24, 2019 by Vinceng

[Kopites]

need to look at the DP as well. AD generally require higher DP as compare to resales. There are people around willing to pay higher monthly instalment and interest than buying from AD.