2nd Hand Car Depreciation Calculation

[famasutika]

Can someone share on how the depreciation value of a 2nd hand car is being calculated?

 

[naruto13]

from sgcarmart :

Depreciation figures are based the yearly depreciation of the vehicle based on the assumption that the vehicle is deregistered only at the end of its 10-yr COE life-span. The value of the car body has not been taken into account.

The formula used to derive the figure is as follows:
Depreciation = (List Price - Min. PARF value) ÷ remaining years

 

[famasutika]

from sgcarmart :

Depreciation figures are based the yearly depreciation of the vehicle based on the assumption that the vehicle is deregistered only at the end of its 10-yr COE life-span. The value of the car body has not been taken into account.

The formula used to derive the figure is as follows:
Depreciation = (List Price - Min. PARF value) ÷ remaining years

Does it means this:

List Price = Buying price (used car) = $50,000
Min PARF value = 70% of OMV = $15,000 * 0.70 = $10,500
Depreciation = (50000 - 10,500) / 5 = $7900

Is my calculation and assumptions correct?

 

[naruto13]

Does it means this:

List Price = Buying price (used car) = $50,000
Min PARF value = 70% of OMV = $15,000 * 0.70 = $10,500
Depreciation = (50000 - 10,500) / 5 = $7900

Is my calculation and assumptions correct?

but i thought for use card we will take the minimum value?
meaning to say the scrap value before 10year.

ur one is inflated min parf value which result in lower depreciation.

before 10year, the minimum is 50% which also depend when ur car register as the % would be diff.


(50000-7500)/5

 

[aerosmiths]

for cars above 2004 or somethings, the percentage is 55% i think

 

[skxly65]

Try the computation for used car at
http://singaporemotoring.blogspot.com/2008/01/financial-cost-of-ownership-for-used.html

 

[famasutika]

Try the computation for used car at
http://singaporemotoring.blogspot.com/2008/01/financial-cost-of-ownership-for-used.html

Thanks a lot for sharing... it's very useful!!!

 

[sky5triker]

Anyone has this excel to share?

 

[ZhuTou!]

No need excel
Used car parf is 50% of arf, those 55% old cars etc alr scrap if im not wrong
Just take 50% as the guideline

Example car left exactly 2 yrs means 24 mths
Price is 20k and parf is 10k
Use the price to deduct parf is 10k
10k divide by 2 yrs is 5k per yr
So 5k is the annual depre

This 5k is exclude loan interest if taking loan
If u wanna be precise, u have to calculate the interest as well

Sent from HUAWEI MATE 9 using GAGT

 

[eyke81]

Anyone has this excel to share?

here:

http://forums.hardwarezone.com.sg/cars-cars-204/spreadsheet-depreciation-4681822.html

 

[hellscream]

here:

http://forums.hardwarezone.com.sg/cars-cars-204/spreadsheet-depreciation-4681822.html

why does car price depreciate faster in the first 3 years?

Thanks!

 

[trento]

Market perception. U paid a premium for the car. It’s not going to depreciate in a linear pattern.

It’s pros n cons. Logic is the older will be cheaper or depreciates less. This is more apparent with high end cars. If its coe car, then even less. Cons is u spend on replacing parts. Overall, no comments. Some insist new car still cheaper than repairing old car. So do the math yrself

why does car price depreciate faster in the first 3 years?

Thanks!