Should I scrap my 3 year old Cat A car?

[Lala81]

For people that bought a car new when COE was high and now thinking about changing car to save money the formular is very simple.

 

If you want to save money. If this is important to you then you should buy a new car when COE is low and change it when COE is low by buying another new car.

 

You cannot save money by buying a new car when COE is high whether you drive it for 10 years or change to another when COE is low.

 

Keep 10 years suffer high depreciation. Change to a new car now suffer big loss selling used or scrapping.

 

 

u may choose to change car earlier.

I looked at it earlier this year, found it not worthwhile. But may relook the issue if COE is thereabouts the same level next year. 

Definitely the depreciation is already there. 

 

Edited October 22, 2018 by Lala81

[RogerNg_185295]

Sorry lemme edit my post to: "Is it dumb to change from my current car to an used but better car?"

 

Haha yes its a three-year- OLD car!

 

Some people have no choice but to buy a car during high COE period cuz their COE expired.

What no choice? There is public transport. And it's willing seller willing buyer transaction.

[flashbang]

my tot is to buy a car that you really like and drive it till end of coe, don't border about coe up or down along the way.

There is another point of view, which is getting in during the right COE cycle.

 

Those who bought during high COE days of 2013-2015, they are stuck in a high COE cycle if they drive full 10 years. Come 2023-2025, they have to buy another car at sky high prices.

 

Whereas those who buy now are in the low COE cycle. Come 2028, they can buy a new car again at lower COE prices.

 

Hence there might be good reason to trade in now for a new car.

[alex976]

There will always be people who can afford to drive no matter how high the COE is.

 

Most important is like what some brothers here say, buy during the right timing. Then the next question is when is the right timing?

 

I believe last year alot of people wont believe CAT A, COE can hover between 25-30k.

 

As TS concerns, if you scrap your high COE car then top a little can get a better car. Why not drive a better car?

 

IMHO, most important thing is make sure you can comfortably afford your ride and not have residual problems (especially kenna F by the wife, no $ for the kids or your folks or no savings ).

 

 

 

[Hamburger]

wait...your calculation on your present car included interest paid and the new car without interest.

 

dont sound right. Should just take out the interest for both.

[Lala81]

wait...your calculation on your present car included interest paid and the new car without interest.

 

dont sound right. Should just take out the interest for both.

 

actually it will just increase the depreciation of the new car and also the combined depreciation overall over 13 years. He's just simplifying it. Otherwise it just increases the depreciation to match his current new car thereabouts.

There is another point of view, which is getting in during the right COE cycle.

 

Those who bought during high COE days of 2013-2015, they are stuck in a high COE cycle if they drive full 10 years. Come 2023-2025, they have to buy another car at sky high prices.

 

Whereas those who buy now are in the low COE cycle. Come 2028, they can buy a new car again at lower COE prices.

 

Hence there might be good reason to trade in now for a new car.

 

yeah, that's something to consider 

[Sktan10]

after full settlement with bank, I will have paid out of pocket a total of $122k.

(downpayment + monthly instalments thus far + loan redemption of remaining 2yrs)

 

the supposed cash that I "take back" from selling my car for a best case scenario is 55k.

 

this 55k defrays the 122k cost that I have paid up, meaning for the 3yrs of ownership so far, I have paid 67k.

 

this 67k is what is making the combined depreciation high I guess..

 

as what lala81 said, the only benefit is driving a new car for another 10yrs.

 

 

 

Your 2015 car,115k with coe 59k.

Your 2018 car,90k with coe 25k.

Both are same model car from what you mention.

Coe drop from 59k-25k=34k difference.

So the car should cost 81k if base on 25k coe.

So 90k not cheap la!

If you really change to same model car,then forget it la!

[Blueray]

when I calculate depre I follow the industry practice of using PARF and COE only. this enables a clearer comparison between cars in the market, whether new or pre-owned.

 

interest is a variable figure (different tenor, different loan amount, different interest rate) and when added in, distorts the depre figure.

[Lala81]

when I calculate depre I follow the industry practice of using PARF and COE only. this enables a clearer comparison between cars in the market, whether new or pre-owned.

 

interest is a variable figure (different tenor, different loan amount, different interest rate) and when added in, distorts the depre figure.

 

but if u include the interest paid in buying the car, that's the actual cost of ownership/depreciation no? (unless u are just comparing selling prices across makes just to evaluate whether it's a good deal)

Edited October 22, 2018 by Lala81

[Blueray]

but if u include the interest paid in buying the car, that's the actual cost of ownership/depreciation no? (unless u are just comparing selling prices across makes just to evaluate whether it's a good deal)

 

yes, if you want to calculate the total cost of ownership. but that means also including other expenses such as insurance, servicing, road tax, petrol etc. 

 

for most cases, purchase price (and hence depre) is the main number, so to me the main thing is to get a good deal at that point. I have not done the sums but my feel is that purchase price will probably be like > 80% of the total cost of ownership.

[Chucky2007]

My car, a forester turbo, is 3 years old. 3 years ago when I bought the car, it’s cost 128l with 60k coe, with a VES of -5k. Now at current 30k coe the car cost 130k with VES of -20k. I like this car quite a fair bit though.

 

I agree that at around 20+k coe and lower it’s worthwhile to buy a new car. I thought of getting another car next year while keeping the forester as I had done up the car quite a fair bit and the car is quiet with extra insulation and also drivability is there from hardware and software changes . but problem is I’m the only driver at home.

 

If I get brand new car (Budget around 160k) and sell this current car away.. totally bohua.. but if I get another new car, maybe a 2 seater of 7 seater MPV, I’m also the only driver.

 

What would you do do if you are me?

[Philipkee]

My two cents since I am thinking of changing my car and it's barely 1.5 years old

 

1) as @jamesc has mentioned, everyone has a choice. Up to TS to calculate.

 

2) money to throw away. People thinking of changing or buying cars generally have money to throw away, unless that person is one of those who believe in yolo and commits without looking at Bank account.

 

What kind of person is TS?

 

3) There is no best time to change cars. If my car is four years old and in need of expensive repairs, makes sense to change. BUT if I have made the repairs before I could sell it, it makes sense to keep it since I have spent the money repairing it.

 

Bottom line, no best time to sell.

 

3) is it worth to sell off a relatively new car? We must realise that buying a car in Singapore is an emotional choice as well as a financial one.

 

4) is a car giving problems? I dunno. Someone who wants to sell the car would always find problems with the car while someone who wants to keep the car will always find the car is OK. Kind of like relationships....

 

Would I change my car? I dunno. I have decided to change my car but the thing is, the time from my eyeing my current accent to the time I actually purchased it was almost four years so who knows?

 

Two cents.

[Philipkee]

My car, a forester turbo, is 3 years old. 3 years ago when I bought the car, itâs cost 128l with 60k coe, with a VES of -5k. Now at current 30k coe the car cost 130k with VES of -20k. I like this car quite a fair bit though.

 

I agree that at around 20+k coe and lower itâs worthwhile to buy a new car. I thought of getting another car next year while keeping the forester as I had done up the car quite a fair bit and the car is quiet with extra insulation and also drivability is there from hardware and software changes . but problem is Iâm the only driver at home.

 

If I get brand new car (Budget around 160k) and sell this current car away.. totally bohua.. but if I get another new car, maybe a 2 seater of 7 seater MPV, Iâm also the only driver.

 

What would you do do if you are me?

Someone taught me. The worst thing one can do is to be attached to a physical asset like a car. If you need to sell it, sell it without blinking an eye.

 

The context is not sell and buy a new car once a year or so but is that if it becomes financially not viable to keep the car, those who are attached to the car will get into trouble because they cannot sell it and it is tying them down.

 

In your case, it seems buying a new car is a good choice but you are not willing to sell your old car for reason of attachment and being the only driver in the house, that can be a dangerous feeling to have.

 

Two cents. Ultimately the choice is yours and I wish I earn enough to be able to be like you with a car budget of 160k.

[Volvobrick]

My car, a forester turbo, is 3 years old. 3 years ago when I bought the car, itâs cost 128l with 60k coe, with a VES of -5k. Now at current 30k coe the car cost 130k with VES of -20k. I like this car quite a fair bit though.

 

I agree that at around 20+k coe and lower itâs worthwhile to buy a new car. I thought of getting another car next year while keeping the forester as I had done up the car quite a fair bit and the car is quiet with extra insulation and also drivability is there from hardware and software changes . but problem is Iâm the only driver at home.

 

If I get brand new car (Budget around 160k) and sell this current car away.. totally bohua.. but if I get another new car, maybe a 2 seater of 7 seater MPV, Iâm also the only driver.

 

What would you do do if you are me?

Really bo hua to have 2 cars and only you drive.

 

If I were you, I would buy an additional 2 seater car, and loan to the MCF bros and not waste the depreciation!

[Char]

Your 2015 car,115k with coe 59k.

Your 2018 car,90k with coe 25k.

Both are same model car from what you mention.

Coe drop from 59k-25k=34k difference.

So the car should cost 81k if base on 25k coe.

So 90k not cheap la!

If you really change to same model car,then forget it la!

Add VES 10k

[awhtc]

End 2018 to early 2019 is probably the best time to get a Cat A car, especially for those who bought 4-6 years ago. This will catch the high COE quota.

 

However, my gut feel is that COE quota is likely expand by maximum of 0.5% in a few years' time when the new satellite ERP is in place and population growth continues.

[Sktan10]

There is another point of view, which is getting in during the right COE cycle.

 

Those who bought during high COE days of 2013-2015, they are stuck in a high COE cycle if they drive full 10 years. Come 2023-2025, they have to buy another car at sky high prices.

 

Whereas those who buy now are in the low COE cycle. Come 2028, they can buy a new car again at lower COE prices.

 

Hence there might be good reason to trade in now for a new car.

 

 

 

Actually see from the chart,coe lowest is in 2006 and 2009 first half.

Follow by 2008 and 2007.

So lowest 10yrs cycle should be 2016(because of uber "做乱"),2019 first half.

Follow by 2018 and 2017.

So the next one maybe 2026,2029 first half.Follow by 2028 and 2027?

Don't think is this way la?In between anything can happen?

 

 

http://tralvex.com/pub/cars/coe.htm

[flashbang]

Actually see from the chart,coe lowest is in 2006 and 2009 first half.

Follow by 2008 and 2007.

So lowest 10yrs cycle should be 2016(because of uber "åä¹±"),2019 first half.

Follow by 2018 and 2017.

So the next one maybe 2026,2029 first half.Follow by 2028 and 2027?

Don't think is this way la?In between anything can happen?

 

 

http://tralvex.com/pub/cars/coe.htm

The cycle has already been broken. During 2014-2016 COE prices were high and those who bought cheap in 2006 couldn't stomach it, so there were quite a lot who renewed 5 years. This caused some COEs to be shifted to thr 2020-2021 period.

 

IMO anytime now to 2020 is a good time to get in for a lower cycle pricing.