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[Car Owners] Is this a good time to deregister and buy new car?

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Old 05-12-2018, 10:37 PM   #1
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[Car Owners] Is this a good time to deregister and buy new car?

Motorist Jon Yeo's pearl-white Toyota Wish - a popular seven-seater - is barely two years old, but he is considering swopping it for a brand new car.

With certificate of entitlement (COE) prices having plunged to their lowest in nearly a decade - $25,000 for smaller cars and $31,000 for bigger models - car owners like Mr Yeo are redoing their sums.

Mr Yeo, a 49-year-old bank officer, said: "When I bought the car in November 2016, COE was $50,000-plus. I paid around $119,000. If I get rid of it and buy a new car, the annual depreciation might be lower, and I may be better off. I'm seriously considering it."

The Wish is no longer available, but Toyota agent Borneo Motors is now retailing the petrol-electric Prius+ hybrid seven-seater from just over $98,000.

Mr Yeo is not alone. With the drop in COE prices, motorists who bought their cars between 2014 and 2016 - when premiums were as high as $90,000 - are finding it more attractive to switch to a new ride now.

Motor industry players, however, said these cars will have to be deregistered and exported to other countries. This is because they will get a refund on the unused portion of their COE. Each COE is valid for 10 years.
1. Can i confirm that this is the best way to compare?
Suppose ur car model A has 8 more yrs, suppose u need car till 2026, assuming car does not breakdown, ignoring time value of money, the comparison is:

option A: scrap ur car MODEL A in 8 yrs time in 2026. get $x back
option B. scrap MODEL A $w. buy new car MODEL A $y. sell/scrap new car MODEL A in 8yrs time at $z

compare $x vs $w+$z-$y


2. i went to onemotoring to check how much i can get via degistration. i can only get $42k for a 8year old car. But checking sgcarmart, i can get $68k if i sell to dealer. Why is there such a big gap?
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Old 06-12-2018, 07:22 AM   #2
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2. i went to onemotoring to check how much i can get via degistration. i can only get $42k for a 8year old car. But checking sgcarmart, i can get $68k if i sell to dealer. Why is there such a big gap?
68k is the price quoted by the dealer. the dealer has to make money so their quote is very at least 10k above the price the pay you.

onemotoring is the deregistration price. this is the worst price that you can get for your car. very often, selling your car yourself will fetch you a very good price compared to one motoring
eg you are driving a lexus at the scrap value of 30k at the end 10 years. you current scrap value is 42k, which means it only cost you 6k per year to drive your lexus. people will be willing to pay a lot more than that for your car.
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Old 06-12-2018, 07:25 AM   #3
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1. Can i confirm that this is the best way to compare?
Suppose ur car model A has 8 more yrs, suppose u need car till 2026, assuming car does not breakdown, ignoring time value of money, the comparison is:

option A: scrap ur car MODEL A in 8 yrs time in 2026. get $x back
option B. scrap MODEL A $w. buy new car MODEL A $y. sell/scrap new car MODEL A in 8yrs time at $z

compare $x vs $w+$z-$y

i will do it this way (y-x)/2. this will give you amount you have to pay to extend driving experience by 2 years.

this is assuming both cars have the same scrap value after 10 years

Last edited by dork32; 06-12-2018 at 07:27 AM..
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