Those who bought car in 2013, lip lai!

[Wt_know]

That the reason to take the shortest loan duration if you have intent to pay full after lock in period.

 

To be honest, banks already compute. For most, if not all car loan, if you redeem your loan once the lock in period is over, you will realise that the interest amt you paid plus the rule 78 penalty, will work out to be about the loan discount you receive from your AD.

yes. that’s why full cash chop chop curry pop right after lock in period. can save at least $5k+ interest which is what the dealer gave so called “finance rebate”. lol

 

that’s based on min loan with min period

those take high loan ... jit dong cheng !!!

 

car loan effective rate is much higher than simi 2.88% published

Edited February 25, 2018 by Wt_know

[Keithchue]

your car is about 5+ years,  balanced COE worth about 40K. 70% ARF assuming about $14k . That means if you drive on, you lose about 11k per year depre. might as well scrap it to get back the money and buy a new car, which will get you same depre or lower depending on what you buy. Because now your COE write off is more than 8k per year, whereas if you buy a new car, COE write off is about 50% of your current write off only.

 

Now that i reference back the other thread of yours, I understand why you mentioned scraping of your current ride.  if the COE continue to stay low or even lower, it is a viable consideration for your case knowing your car has some problem.

 

 

my car now is left 4+ years.  was registered 03/01/2013

COE+car = 49K - outstanding loan amt is 51K.  so net net - I lose 2K. 

 

now, if I buy another car,

DP - 20-40K depending what I want to have

monthly - lets just say, it is what I am paying now

so vis vis - I lose the DP amt if I change car.

 

also, lets just assume that, the ARF at the end of the day 3650, I get back 55% x 28K = 14K.  Im thinking to use that 14K to re-purchase another car then, am I right?

[Vinceng]

Sometime,i think S'porean really "Stress' when buying Cars,Car due to scrap,must book new car 6 Months in advance,let dealer bid COE,Import the Car,so We actually use the Car "less" than 10 Years,after buying,COE crashed,bang Balls...   COE Up... happy....My Friend in Australia told me,in their Country,used the Car until,you really cannot take it's condition,then go & book a new Car,price wise,just a few hundred Dollars different due to exchange Rates...so no worries.

 

Only in Singapore - bread and butter cars change hands like changing  underwear.

 

The mentality here is to change car when warranty ends.  

[labixiaoxinsg]

My Brother's K3 also Aug 2013,1st batch,still driving,if you mileage not high,or you still love the Car,just keep it,what is the point keep on paying installments...all your life.?

71k mileage now. Should be 77k or so at 5yr mark. Hehe already paying housing installments whole life, might as well pay $1-2k more per month get contincar, alleviate the suffering a bit hehe

[Evillusion]

Only in Singapore - bread and butter cars change hands like changing underwear.

 

The mentality here is to change car when warranty ends.

i dont! Dont want to give $20-$30 k for ad and agents for their holiday. Renewing coe have to come out nearly 40k is enough. Add another $5k for car spare parts that need to be changed like suspensions and the likes and its good for another 10 yrs. 1 bo lui!

[Ct3833]

my car now is left 4+ years.  was registered 03/01/2013

COE+car = 49K - outstanding loan amt is 51K.  so net net - I lose 2K. 

 

now, if I buy another car,

DP - 20-40K depending what I want to have

monthly - lets just say, it is what I am paying now

so vis vis - I lose the DP amt if I change car.

 

also, lets just assume that, the ARF at the end of the day 3650, I get back 55% x 28K = 14K.  Im thinking to use that 14K to re-purchase another car then, am I right?

Below is my thoughts for discussion purpose, I may not entirely correct.

Your assumption is generally correct.  But instead of scrapping your car at $49k, you may want to try selling your car to a dealer at $2k or $3k above paper value. I know it may be tough but you have no loss trying it out.

 

In terms of you “losing” down payment, this is something you will have to incur when you change car, just that you are  bringing this event 4+years earlier than later.

 

A couple more points for consideration:

ARF - You mention $28K ARF, looks like you are looking for decent car, not a generally BtoB car.  I would imagine the value of your target car in mind should be  at least $130k there about, you need to be clear with the amount of DP and monthly installment involved.

 

COE Cycle – the one plus point if you change car now is that you break your COE cycle, if you drive for 4+ year later, you will likely hit the COE drought cycle like you did in 2013. That would mean you will likely have to pay for higher COE which will translate into higher car price as well as compare to you do it now.

 

Current car condition – considering your car condition now which may continue to incur some repair down the road(basing on inputs/probability/trend etc, I may be wrong), it may be worth or at least on par for you to change car. Because your car has a fairly higher COE than the current level, COE plus repair would result in higher total cost of ownership.

 

The only drawback is that your COE is still not the highest during that period. My wild guess of your COE should be about $75k range, that makes the financial justification to change car slightly weaker as compare to the $90K COE.  Anyone who have a $90k COE with the same condition as you are, changing car would be  a more viable option. But your case still one that is worth considering.

 

One last but important point is financial. If one is determined  to continue driving in SGP, then one will have to bite the bullet to accept the financial setback. But for those who have less spare cash to play around, it is important to do the monthly expense sum carefully. 

Edited February 26, 2018 by Ct3833

[Heman75]

It's not about how much lost if change car, it's about how much u topping up to get a new car that will last 5 more years. If sell a high coe car n need to top up 30k to buy a new car, it's spending 30k to drive for another 5 years. Why not?

it is not that direct.. i think alot of ppl forget about the actual deprecation over the years of ownership. let me quote you an example.

 

2015 E200 bought at 220k nett coe 76k

3yrs later coe 35k (assume will drop to this level) , scrap/dereg now only 90k refund maybe body add 5k (assume) total 95k

220-95= 125k over 3yrs.

 

3yrs later coe 35k assume will drop to this level) , sell dealer now only 120k 

220-120= 100k over 3yrs.

 

if drive 10yrs, the depre about 19 to 20k mean change now u actually lost extra 40k if you sell dealer which you need to add into the new car cost.

 

if change now to similar, the net new car cost 230k nett with depre about 21-20k

so the issue is not that str forwarder where dealer will tell u high coe must change. not true. first the new car depre is already higher than before and you need to add in the 40k lost before which in fact make new car even more expensive.

this is because the tax for lux car has increased. 

 

the sample concept and understanding must be applied across all cars then u will see if make senses to change

 

make money or drive free only when buy low sell high. simple rule.  

[Wt_know]

a 2015 E200 at least can fetch $120K la

i always used sgcarmart selling price minus $15K-$20K ... sibei choon one as what dealer will makan your car

 

it is not that direct.. i think alot of ppl forget about the actual deprecation over the years of ownership. let me quote you an example.

2015 E200 bought at 220k nett coe 76k

3yrs later coe 35k (assume will drop to this level) , scrap/dereg now only 90k refund maybe body add 5k (assume) total 95k

220-95= 125k over 3yrs.

 

Edited February 26, 2018 by Wt_know

[Heman75]

a 2015 E200 at least can fetch $120K la

i always used sgcarmart selling price minus $15K-$20K ... sibei choon one as what dealer will makan your car

isnt what i mentioned in my post.. 120k assumption 

[Wt_know]

isnt what i mentioned in my post.. 120k assumption

sorry my bad ... yes $120k.

[Evillusion]

Sometime,i think S'porean really "Stress' when buying Cars,Car due to scrap,must book new car 6 Months in advance,let dealer bid COE,Import the Car,so We actually use the Car "less" than 10 Years,after buying,COE crashed,bang Balls... COE Up... happy....My Friend in Australia told me,in their Country,used the Car until,you really cannot take it's condition,then go & book a new Car,price wise,just a few hundred Dollars different due to exchange Rates...so no worries.

sometime when see good cars going to the scrapyard brings a tinge of sadness. Most countries good old cars are brought back to life by upgrading parts that are worn off, engine totally overhauled and the owners will drive around proudly. Down here.......only new cars are driven proudly because of the sense of pride of having the means to be able to buy a car with an exorbitantly priced coe.

[Volvobrick]

sometime when see good cars going to the scrapyard brings a tinge of sadness. Most countries good old cars are brought back to life by upgrading parts that are worn off, engine totally overhauled and the owners will drive around proudly. Down here.......only new cars are driven proudly because of the sense of pride of having the means to be able to buy a car with an exorbitantly priced coe.

 

Here every car sent to scrap yet means government very happy - new COE premium, more ARF, VES surcharge, 20% customs duties plus corporate tax on AD's profits and salesmen's income tax.

 

Car-lite? Really?  If it happens, GST will go up to 20% to compensate.

[Wildfaye29]

Will Durian drop?

[13177]

sometime when see good cars going to the scrapyard brings a tinge of sadness. Most countries good old cars are brought back to life by upgrading parts that are worn off, engine totally overhauled and the owners will drive around proudly. Down here.......only new cars are driven proudly because of the sense of pride of having the means to be able to buy a car with an exorbitantly priced coe.

Indeed indeed, very sad to see those cars at scrapyard, what a wasteful. Cars which are built to last much more longer than 10 years and yet the policy here killed them off.

[Evillusion]

Here every car sent to scrap yet means government very happy - new COE premium, more ARF, VES surcharge, 20% customs duties plus corporate tax on AD's profits and salesmen's income tax.

 

Car-lite? Really? If it happens, GST will go up to 20% to compensate.

and they complained how expensive things are becoming in sg! Car-lite is a ploy to help the public transport companies.....kills many birds with one stone....as Phillip said.......ah.....heck care lar!

Will Durian drop?

Durian season is out! Others can do while we wait....tio bor? Unless you like having durian everyday....and the best durians are those that naturally dropped on the ground.....thats the difference between Malaysian and Thai durian.

[Evillusion]

Indeed indeed, very sad to see those cars at scrapyard, what a wasteful. Cars which are built to last much more longer than 10 years and yet the policy here killed them off.

you know i watched youtube on bike every other day. The bike that i rode back in the 90s are being kept, refurbished, maintained and rode proudly by their owners.....the 2 strokers 250s, 400s and 500s have a huge following and are known to be legends because no motorcycle companies are producing them anymore. Cars are also in that same league......some prefer to drive in their old but well-maintained cars and they are willing to part double then what people are paying for a modern sports car.

[13177]

you know i watched youtube on bike every other day. The bike that i rode back in the 90s are being kept, refurbished, maintained and rode proudly by their owners.....the 2 strokers 250s, 400s and 500s have a huge following and are known to be legends because no motorcycle companies are producing them anymore. Cars are also in that same league......some prefer to drive in their old but well-maintained cars and they are willing to part double then what people are paying for a modern sports car.

But the policy here have ''brainwash'' people that driving in an old car dont have face value. Thats why if possible most people here would change car every 5-7 years.

[Evillusion]

But the policy here have ''brainwash'' people that driving in an old car dont have face value. Thats why if possible most people here would change car every 5-7 years.

ya.....i also think likewise. We have become a a somewhat extravagant consumer society thanks to the policies dished out!