COE continue to climb …

[myviowner]

What kind of question is that lol. Obviously Cat A gonna be 130k before the next LTA announcement

Am waiting for this to come. Hopefully will hit this mark.

 

[superman]

with the gov news rule of reducing COE next month, do you think the COE will fall or rise further?

Other than Cat C and D, Cat A and B should rise, Current COE policy benefits big car buyers, Small car buyers will have lesser COE Quota and big cars buyer will have more COE Quota.

 

[toughcookie13]

I got a silly question re. COE.. first time buyer here so pardon me:

If I'm buying a second-hand car, does it mean that if I aim for the years with low COE would give me better depreciation, lower overall cost? Or is it that it doesn't matter and somehow the prices would be normalised or pegged to current COE levels?

 

[EJB]

I got a silly question re. COE.. first time buyer here so pardon me:

If I'm buying a second-hand car, does it mean that if I aim for the years with low COE would give me better depreciation, lower overall cost? Or is it that it doesn't matter and somehow the prices would be normalised or pegged to current COE levels?

Depre is not by just looking at COE, you have to look at your purchase price also.

COE $50K, your purchase is $80K for say a 3 year old car. That's still about 24K depre a year. 80-PARF- Scrap / 3 estimated about 24K.

When COE is high, u sell high, buy high. When COE is low, you sell low buy low.

 

[myviowner]

I got a silly question re. COE.. first time buyer here so pardon me:

If I'm buying a second-hand car, does it mean that if I aim for the years with low COE would give me better depreciation, lower overall cost? Or is it that it doesn't matter and somehow the prices would be normalised or pegged to current COE levels?

At this moment, coe Cat A at 103k. You look at for examples Cat A models 2 years old, bacl then at 2021, COE hovering like 40+k.
These cars prices also has been escalated due to current coe price.

 

[toughcookie13]

At this moment, coe Cat A at 103k. You look at for examples Cat A models 2 years old, bacl then at 2021, COE hovering like 40+k.
These cars prices also has been escalated due to current coe price.

But I assume owners who sold the car were still being offered an amount that’s reasonable to the car’s paper value right? It’s the second car dealers that adjust the price (and increase their margins) to match current coe price levels - is this right?

 

[EJB]

But I assume owners who sold the car were still being offered an amount that’s reasonable to the car’s paper value right? It’s the second car dealers that adjust the price (and increase their margins) to match current coe price levels - is this right?

Would you accept a paper value offer when the COE is that high?

Just 4 months ago when Cat B was 100K+, the offer for my 1.5 year car, was near my purchase value. Some offered me way less, I ignored them.

 

[myviowner]

But I assume owners who sold the car were still being offered an amount that’s reasonable to the car’s paper value right? It’s the second car dealers that adjust the price (and increase their margins) to match current coe price levels - is this right?

Adhere to what big brother @EJB comment

 

[LightBuzz]

What kind of question is that lol. Obviously Cat A gonna be 130k before the next LTA announcement

I think you need to eat your word at least for this week

 

[deodorant]

I think you need to eat your word at least for this week

Haha. A bit surprised, quota for this quarter reduced but the COE price also reduced. Looks like I might need to eat my words even after the end of July

 

[EmPtYsOuLz]

I got a silly question re. COE.. first time buyer here so pardon me:
If I'm buying a second-hand car, does it mean that if I aim for the years with low COE would give me better depreciation, lower overall cost? Or is it that it doesn't matter and somehow the prices would be normalised or pegged to current COE levels?

Depreciation is calculated based on the seller's selling price and not the COE.
Resale prices are not pegged to current COE prices per se because resale prices are entirely at the seller's discretion but 99% of the time dealers/seller's will mark up their prices to capitalise on the rising COE price.

To give you an example, I was in the market for a 1-2year old car (with >8 years COE left) recently and was considering used Mazda 3s. The listings were all at ~13-14k depreciation depending on the trim but if you look back at the historical selling price the cars when sold in 2021/2022 was barely crossing 105k for the classic trim and 10k depreciation (low parf due to VES rebate).
So the dealers were selling a 1-2 year old cars for >10k profit despite driving for a year or more.

That is fairly common on the 2nd hand car market now.

In the rare event you find the same make with same depreciation but different COE prices it will be worthwhile to take the higher COE one because if you scrap before Y10 you will get back a higher COE refund.


Read HWZ Forum Rules!

 

[Panerex]

If I renew COE for 5 years, and I scrap on 2nd year. Do I get back unused COE?

or is such refund only apply for 10-years COE renewal?

 

[Mystyque]

If I renew COE for 5 years, and I scrap on 2nd year. Do I get back unused COE?

or is such refund only apply for 10-years COE renewal?

You get refund for unused COE, 5yrs or 10yrs.

 

[endlssorrow]

Many renew 10years and wait for COE to drop and then can scrap n take back balance COE value lor.

if now renew is $100k in 2023
2026 COE is $30k

scrap balance take back $70k
New car COE save $40k
Smart logic thinking

 

[gnoes85]

Many renew 10years and wait for COE to drop and then can scrap n take back balance COE value lor.

if now renew is $100k in 2023
2026 COE is $30k

scrap balance take back $70k
New car COE save $40k
Smart logic thinking

2026 coe u missed a 1 infront, it will be 130k

 

[deodorant]

https://www.lta.gov.sg/content/ltag...one-time_adjustment_to_reduce_volatility.html
Wah, KNN. I just got my Cat A COE at 101k last week, now only LTA chut this pattern.

 

[EmPtYsOuLz]

how you know whether COE will drop?
I'm sure many people are salivating at the chance of buying at a lower priced COE due to the increased quota but it might also end up that the increased demand keeps prices high

Just like how everytime COE drops significantly, it will bounce back at the next exercise due to the increased demand


Read HWZ Forum Rules!

 

[0x0zzz]

LTA wanna accumulate la, price wouldn’t drop a lot of la haha

 

[myviowner]

In theory, is supply and demand. The authority work based on this. However, it may not come true as to stable down the COE price.
Imagine this, hearing this news, more ppl will rush to get new cars, OMG...

 

[myviowner]

https://www.lta.gov.sg/content/ltag...one-time_adjustment_to_reduce_volatility.html
Wah, KNN. I just got my Cat A COE at 101k last week, now only LTA chut this pattern.

Chun what pattern? You expect coe will drop meh?