Jump to content

Should I scrap my 3 year old Cat A car?


sthh
 Share

Recommended Posts

Can anybody advise whether I can change my car?

Just bought in early Jun this year.. Honda Fit with a CAT A COE of $38,001

 

 

[lipsrsealed]

 

I want to buy the new A200 hatchback  [:p]

Change car will make a big loss as your car too new. Anyway A200 hatchback is a good car especially now COE rebate from C&C if not wrong is S$16,000 which lower the selling price. 

↡ Advertisement
Link to post
Share on other sites

Change car will make a big loss as your car too new. Anyway A200 hatchback is a good car especially now COE rebate from C&C if not wrong is S$16,000 which lower the selling price. 

 

But C&C not bringing in the 2018 A200 model yet. Thinking of going PI.

But I can't bear to lose so much money.

 

My car ARF is only $5k.

Link to post
Share on other sites

Actually this is a good enough reason to change. Don't believe just got watch some youtube videos of the importance of curtain airbags even in front collision (e.g. IIHS small overlap front crash test), and that of ESC, ESP or what not.

And Elantra should be compared to Civic or Corolla. City is one level below.

Lastly those who say Korean cars drink more, aircon not so cold are still living in the 90s.

 

Actually they are true to a certain extent lah.. you compare models of the same segment, from Japan and Korea.. you'd see the FC for Korean makes, a little worse usually. 

 

To quote my own example, Stinger 2.0T 253bhp 353nm - The figures are good but FC is poorer than conti or Japanese counterparts of the same engine or segment.

 

But indeed Korean cars have improved a lot in the past few years but some people are too narrow minded to give them a chance. Aircon one I'm not sure, good enough for me.. plus have ventilated seats to blow my pigu  :grin:

Link to post
Share on other sites

Can anybody advise whether I can change my car?

Just bought in early Jun this year.. Honda Fit with a CAT A COE of $38,001

 

 

[lipsrsealed]

 

I want to buy the new A200 hatchback  [:p]

That is way too soon. Did you pay full cash? Your car loan might have a lockout period maybe 6 months at a min.

 

Remember on top of the depre loss you are paying a certain percentage of up to 7 years' interest when you early settle the loan... your next loan will add interest on top of that. It is really money down a drain. Better to run down and wait for one generation unless (a) u rly itchy or (b) u rly rich

Link to post
Share on other sites

my senior colleague run thru some calculation showing me recently when he was planning to replace his Feb 2013 car.

his car coe rebate is enough to pay for the new car DP, and so he mentioned that if its a change with no cash upfront, and save extra saving per month then it is worth it,

he saves about $600-$700 per month just on COE depre and he mentioned if he decide to go for a less luxurious brand, he will saving even more per month even when the car size is similar. 

 

he's been car shopping over the last 2 months and still hopes the COE drops further..

 

 

 

hi guys,

 

with the recent lower COEs, I have read on the news that more people are considering scrapping their cars(with high COEs) early to take advantage of the lower COEs.

 

This, I believe, is with regards to the supposed lower average depreciation for the duration of the 2 cars' lifespan.

 

am quite keen on this idea, but....

 

Somehow I am unable to work out why.

 

 

Take this example:

 

2015 car purchased new at  = 115k

downpayment 60k, loan 55k,

interest paid over 5yrs = 7k

COE = 59k

 

If I use the current 2015 car for the full 10yrs, depreciation = (115 + 7) / 10yrs = 12.2k per year.

 

------------------------------------------------------------------------------------

 

If I decide to buy a new car now to take advantage of lower COEs,

 

according to onemotoring,

COE rebate amount = 39k

PARF rebate amount = 6k

Therefore if I scrap the car, I get back 45k

 

If I sell to dealer, quoted 52k

If sell privately, maybe 55k

 

-------------------------------------------------------------------------------------

 

Using best case scenario of getting back 55k by selling my car privately..

 

I will have spent a total of:
(cost of car + interest paid & owed to bank) - (amount from sale of car)

= 122k - 55k

= 67k

 

-------------------------------------------------------------------------------------

 

I was quoted 90k for the same model car, albeit a new 2018 version with a low COE.

 

let's not include the new bank loan + interest accrued to keep things even simpler (or to tilt things in favour of buying a new car).

 

depreciation of this new 2018 car: 90k / 10yrs = 9k per year.

 

 

However we need to look at the combined depreciation of both the 2015 and 2018 cars.

 

Combined depreciation:

 

(90k + 67k) / (10yrs + 3yrs) = 12.07k per year

 

???!!!???!!!

 

---------------------------------------------------------------------------------------

 

am I missing out anything?

mathematically, the average depreciation is about the same..

 

how can it be that people will save $$ by getting rid of their high COE cars and buying a new car now??

 

I must have missed out some factors/components...

 

kindly enlighten me pls!!

 

Link to post
Share on other sites

Not say People dun give korean car a chance. Also nothing to do with Korean reliability. Certain people have the mindset that korean cars are one league below the Jap cars. Mindset hard to change, 

 

So die die must avoid being in the lower league.

Actually they are true to a certain extent lah.. you compare models of the same segment, from Japan and Korea.. you'd see the FC for Korean makes, a little worse usually. 

 

To quote my own example, Stinger 2.0T 253bhp 353nm - The figures are good but FC is poorer than conti or Japanese counterparts of the same engine or segment.

 

But indeed Korean cars have improved a lot in the past few years but some people are too narrow minded to give them a chance. Aircon one I'm not sure, good enough for me.. plus have ventilated seats to blow my pigu  :grin:

 

Link to post
Share on other sites

my senior colleague run thru some calculation showing me recently when he was planning to replace his Feb 2013 car.

 

his car coe rebate is enough to pay for the new car DP, and so he mentioned that if its a change with no cash upfront, and save extra saving per month then it is worth it,

 

he saves about $600-$700 per month just on COE depre and he mentioned if he decide to go for a less luxurious brand, he will saving even more per month even when the car size is similar. 

 

he's been car shopping over the last 2 months and still hopes the COE drops further..

This is what exactly I said in earlier post.

No cash upfront.Old car is the down payment and continue the new 5yrs loan.(2018-2023)

But if he keep the 2013 car,he will be debt free for 5yrs.(2018-2023).Assuming he is on 5yrs loan.

Anyway,car eats money.lol.......

  • Praise 1
Link to post
Share on other sites

Why would anyone want to be in debt forever? Once car loan clear, just drive the current car.

This is what exactly I said in earlier post.

No cash upfront.Old car is the down payment and continue the new 5yrs loan.(2018-2023)

But if he keep the 2013 car,he will be debt free for 5yrs.(2018-2023).Assuming he is on 5yrs loan.

Anyway,car eats money.lol.......

 

Link to post
Share on other sites

Why would anyone want to be in debt forever? Once car loan clear, just drive the current car.

I also don't know leh?

But a lot of them are calculating this way.My neighbour is one of them.

Link to post
Share on other sites

The fear that most of car owners have is to see sky high COE coming back after the bumper crop COE ended.

What will be the COE level 5 yrs later? What is the chance that it will remain like this low?

 

Why would anyone want to be in debt forever? Once car loan clear, just drive the current car.

 

  • Praise 1
Link to post
Share on other sites

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?

I'm having a similar plan as you. Same, FXT. but mine is 122k, 48k COE. Yours more wuhua. lol.

 

I'm planning to get the new swift sport in 3 years after I paid up the loan for this FXT. Maybe to buy it under OPC scheme since this car will be under utilized. The FXT is useful in ferrying overseas visitors around. So I'm probably going to keep it. Right now, try to pyscho wife to get a license to take over the FXT in the future or lend it to my father if he needs it. Things are still floating now, and might change in 3 years. so who knows.

  • Praise 1
Link to post
Share on other sites

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.

I purposely didn't include the interest for the new car, so as to skew calculations more towards buying a new car, for discussion's sake.

 

end up there is still not much financial incentive to buy a new car now because the combined depreciation is about the same.

 

 

 

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.

 

yeah, that's something to consider  -_-

yup u got it..

Link to post
Share on other sites

I'm having a similar plan as you. Same, FXT. but mine is 122k, 48k COE. Yours more wuhua. lol.

 

I'm planning to get the new swift sport in 3 years after I paid up the loan for this FXT. Maybe to buy it under OPC scheme since this car will be under utilized. The FXT is useful in ferrying overseas visitors around. So I'm probably going to keep it. Right now, try to pyscho wife to get a license to take over the FXT in the future or lend it to my father if he needs it. Things are still floating now, and might change in 3 years. so who knows.

 

2 cars, definitely need 2 full time drivers to fully utilise in sg. 

sign your wife up for classes haha 

 

my wife just started driving in May also.

Link to post
Share on other sites

Depre over 2 years for city - 36k

depre over 10 years for new elantra elite - 77k if based on omv of 12k

total depre over 12 years is 113k. hence 11.3k/year

 

Depre of your original honda city assuming omv of 14k (i not sure whats the omv) - 8.9k/year

 

whether COE will be cheap in 7years + time when u need to renew. no one knows. But u still lose the 20+k that u pay to the dealers.

 

My 3.5 year old car COE is 75k. Lol...

sorry old post but I have to say the depreciation is 113k/12 = 9.4k ^.^
Link to post
Share on other sites

sorry old post but I have to say the depreciation is 113k/12 = 9.4k ^.^

 

thanks for pointing out the error!

Then in that case, the difference is close enough to consider changing car. But won't "save" $.

Link to post
Share on other sites

People that bought cars three years ago with high COE shouldn't change car now.

 

Please don't squeeze with us people who can only afford low COE.

 

:D

↡ Advertisement
  • Praise 2
Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share

×
×
  • Create New...