Buying new car

[tanww17]

Like to seek advice.

If someone bought a new car with the current COE levels and assuming that COE drops significantly after 1 year, is there any way to minimize the missed opportunity? Like selling the current car and buy a new car? No sure how it works. Thanks.

 

[ZhuTou!]

Scrap

Anyway u are alr making a lost once u drive out of the showroom
So just drive only, dun think about the coe

 

[chopra]

if everyone does that, then who would buy Nov 2015 cars?

intuitively this doesnt work.

 

[dork32]

Like to seek advice.

If someone bought a new car with the current COE levels and assuming that COE drops significantly after 1 year, is there any way to minimize the missed opportunity? Like selling the current car and buy a new car? No sure how it works. Thanks.

1. buy a 9 year old car and drive for one more year.

2. extend the coe of you car. eg coe is now 100k. after you drive your old car for 2 years, you realize that the coe is now 50k. you can still scrap you old car for 80k and buy a new car with coe of 50k. what you lose is the parf value. this is small compared to the amount lost if you buy a new car and scrap it two years later.

 

[chopra]

1. buy a 9 year old car and drive for one more year.

2. extend the coe of you car. eg coe is now 100k. after you drive your old car for 2 years, you realize that the coe is now 50k. you can still scrap you old car for 80k and buy a new car with coe of 50k. what you lose is the parf value. this is small compared to the amount lost if you buy a new car and scrap it two years later.

interesting.
the conventional thinking in recent times is buy new car since depreciation is the same as used car.

let me list out a few examples tonight or so and see whats the difference in savings like

 

[HeadQuarters]

In before 'got 2 PARF rebates for one car' kind of warped, self-deceived into thinking annual depreciation is lower than actual eh calculation

 

[dork32]

interesting.
the conventional thinking in recent times is buy new car since depreciation is the same as used car.

let me list out a few examples tonight or so and see whats the difference in savings like

what i am suggesting is that you know that the future coe is going to be cheaper.

you are right in that the depreciation of old car is the same as the new car. if coe prices are going to be the same, it is advisable to buy a new one.

eg
my example is this
today car price 60k, coe price 50k. scrap value of old car/new car 10k
two years later car price 60k, coe price 40k

car price is now 110k and scrap value is 10k. cost per year= 10k/yr

if you buy a 10 yr coe at 50k now and drive for 2 years. you then scrap the car and get back the coe at 40k. then buy a new car at 100k with scrap value of 10k.
total time = 12 years
amount spent = 50k + 100k
scrap value = 40k + 10k
parf lost = 10k
total cost for 12 years = 110k
total cost per year = 9.17k/year
can follow my suggestion, right?

 

[eurofunk]

those like to claim high paper value one self console and suck thumb Lor when Coe drop

 

[parkingandride]

what i am suggesting is that you know that the future coe is going to be cheaper.

you are right in that the depreciation of old car is the same as the new car. if coe prices are going to be the same, it is advisable to buy a new one.

eg
my example is this
today car price 60k, coe price 50k. scrap value of old car/new car 10k
two years later car price 60k, coe price 40k

car price is now 110k and scrap value is 10k. cost per year= 10k/yr

if you buy a 10 yr coe at 50k now and drive for 2 years. you then scrap the car and get back the coe at 40k. then buy a new car at 100k with scrap value of 10k.
total time = 12 years
amount spent = 50k + 100k
scrap value = 40k + 10k
parf lost = 10k
total cost for 12 years = 110k
total cost per year = 9.17k/year
can follow my suggestion, right?

This is correct but u need to factor loan interest all those.. unless coe drop by more than 20k , else it is not very worth ba...

 

[chopra]

And maintenance fee for old car. But thanks dork

Sent from ew line is so sloooow using GAGT

 

[greenhse]

whatever kind of calculation and formula also cannot win LTA

 

[dork32]

And maintenance fee for old car. But thanks dork

Sent from ew line is so sloooow using GAGT

you are right. not to forget the increased road tax for old cars. 10% extra for the first year, 20% extra for the second year

 

[HeadQuarters]

whatever kind of calculation and formula also cannot win LTA

This is the best summary of this thread

 

[chopra]

Dork, actually didnt get your english and math. I calculated my own. Can correct me if i'm wrong as i'm very new to this, and i need to form a good assessment within these few months. TIA if u are willing to help.


Scenario 1: Buy a new Mazda 3 in Nov 2015. When COE crash to $40k in 2017, dereg in 2017 and buy a new Mazda 3 again.

Buy new mazda 3 in nov 2015: 110k (i), comprising of
• 16k OMV
• 16k Tierd ARF
• GST, CEV rebate, regn fee, profit margin by distributors
• 10year Nov 2015 COE: 50k
Dereg in 2017: COE Rebate + PARF rebate = 40k + 75% of ARF = $40k + 75% of 16k = 52k (ii)

Buy new mazda 3 in nov 2017: 100k (iii), comprising of
• 16k OMV
• 16k Tierd ARF
• GST, CEV rebate, regn fee, profit margin by distributors
• 10year Nov 2017 COE: 40k
Dereg in Oct 2027: 50% of ARF = 8k (iv)

Total cost in 12 years = i - ii + iii - iv = 110 – 52 + 100 - 8 = 150k


Scenario 2: Buy Oct 2008 Mazda 3 (with 24months left), dereg in 2017 and get another brand new Mazda 3 in 2017.

Buy a Oct 2008 Mazda 3 in Nov 2015: $30k (got the price from sgcarmart). (a)
Dereg in Oct 2017: $8k (b)

Buy new mazda 3 in nov 2017: 100k (c), comprising of
• 16k OMV
• 16k Tierd ARF
• GST, CEV rebate, regn fee, profit margin by distributors
• 10year Nov 2017 COE: 40k
Dereg in Oct 2027: 50% of ARF = 8k (d)


Total cost: a - b + c - d = 30 – 8 + 100 - 8 = 114k


References:
http://www.onemotoring.com.sg/publi...st.MainPar.30963.File.tmp/Car_Cost_Update.pdf
http://www.sgcarmart.com/news/writeup.php?AID=13

 

[chopra]

wah lan. so many parameters. road tax as well? rocket science sia. Got any excel spreadsheet anot? I dun mind doing scenario study if there isnt a single equation to solve this math...

 

[dork32]

wrong omv can never be 60k. omv is only 16k

arf = omv. 75% of arf = 12k

your (iii) is only 52k

you dereg in 2027, you get 50% of arf or 8k

so the cost of 12 years is 110 + 100 - 52 - 8 = 150k. very expensive if you do this. it is expensive if you try to scrap a two year old car

 

[dork32]

for scenario 2 you have a dereg value of 8k for both cars

so total cost for 12 years = 114k. much lower than 150k

 

[dork32]

consider scenario 3 where you buy a 10 yr old mazda 3 and buy new coe at 50k. after 2 years, dereg and buy new mazda 3.

10 year old mazda 3 = 8k
coe = 50k
de reg = 40k

new mazda 3 = 100k
dereg = 8k

total cost for 12 years = 110 k

 

[dork32]

those like to claim high paper value one self console and suck thumb Lor when Coe drop

wrong, if you are driving a car that is more than 10 years old, you can scrap the car and get back the paper value.

use the money when you dereg to buy the new low price coe

 

[dork32]

Dork, actually didnt get your english and math.

i dont blame you. sometimes, i write so badly that i dont even know what i am writing