thoughts on scrapping

[Comage]

thanks bro Zhutou for the advice,

yes, anyhow attrage could still be better off than blueSG..

if 100%, loan, would means paying 20k more in interest, and depre will be at 13k.

My advice to you is - if you cannot buy a car by following MAS rules of putting down at least a 30-40% downpayment in cash, don't get a car.

MAS has these rules in place to prevent people from overleveraging their finances. Trying to circumvent this and get a 100% loan just to own a car - you are going to get into a lot more trouble down the road.

I am seeing a rising number of cases of car owners who overleveraged and end up having to resort to:
- Skipping on paying road tax (and motor insurance in some cases)
- Chalking up endless parking fines (can't afford to topup the cashcard so anyhow park at the non-gantried zones)
- Driving only at night to evade law enforcement when they receive the letter for composition of fines or court of summons letter for overdue unpaid fines

It's a one-way road for these guys, and some cases their vehicles end up getting impounded.
Or their cars make it to the Auction category at sgcarmart when it finally gets repo-ed:
https://www.sgcarmart.com/used-cars...]=8&vts[]=9&trn=2&opc[]=0&avl=a&ord=DATE_DESC

So if you are thinking about 100% loan, don't.
I am sure the other old birds watching this thread will not disagree with my advice above.

 

[EJB]

My advice to you is - if you cannot buy a car by following MAS rules of putting down at least a 30-40% downpayment in cash, don't get a car.

MAS has these rules in place to prevent people from overleveraging their finances. Trying to circumvent this and get a 100% loan just to own a car - you are going to get into a lot more trouble down the road.

I am seeing a rising number of cases of car owners who overleveraged and end up having to resort to:
- Skipping on paying road tax (and motor insurance in some cases)
- Chalking up endless parking fines (can't afford to topup the cashcard so anyhow park at the non-gantried zones)
- Driving only at night to evade law enforcement when they receive the letter for composition of fines or court of summons letter for overdue unpaid fines

It's a one-way road for these guys, and some cases their vehicles end up getting impounded.
Or their cars make it to the Auction category at sgcarmart when it finally gets repo-ed:
https://www.sgcarmart.com/used-cars...]=8&vts[]=9&trn=2&opc[]=0&avl=a&ord=DATE_DESC

So if you are thinking about 100% loan, don't.
I am sure the other old birds watching this thread will not disagree with my advice above.

Even if you can afford the road tax etc....

Let me explain more why hefty loans are not encouraged - total loss.

Sure, it's not everyday a car gets total loss, but overloaning, without that 30-40% down, puts you at a risk, in the event your car is TOTALLED (no repairs possible), the payout from insurance is only car value at time of deregistration.

Insurance *DOES NOT* pay for your interest on the loan amount.

Taking a 100% loan, 200K car will have 57K in interest.

Let's say VERY sway...1st day of 2nd year diving, a ferrari comes along... WHAM, your car overturns, no dents, no scratches but your chassis is damaged, resulting in total loss.

Insurance says NO PROBLEM! I PAY YOU.

They pay you dereg value. Prob $180K, your outstanding loan unfortunately is still $240K probably. You need to cough up $60K.

If you can't down 60K.... I don't know how you going to take out 60K

 

[Comage]

Even if you can afford the road tax etc....

Let me explain more why hefty loans are not encouraged - total loss.

Sure, it's not everyday a car gets total loss, but overloaning, without that 30-40% down, puts you at a risk, in the event your car is TOTALLED (no repairs possible), the payout from insurance is only car value at time of deregistration.

Insurance *DOES NOT* pay for your interest on the loan amount.

Taking a 100% loan, 200K car will have 57K in interest.

Let's say VERY sway...1st day of 2nd year diving, a ferrari comes along... WHAM, your car overturns, no dents, no scratches but your chassis is damaged, resulting in total loss.

Insurance says NO PROBLEM! I PAY YOU.

They pay you dereg value. Prob $180K, your outstanding loan unfortunately is still $240K probably. You need to cough up $60K.

If you can't down 60K.... I don't know how you going to take out 60K

Ya better for Big Brother to talk some sense into these younger generation guys.

He at least still acknowledged your previous comments earlier on.

Didn't even dignify my advice earlier with a response at all.

 

[EJB]

Ya better for Big Brother to talk some sense into these younger generation guys.

He at least still acknowledged your previous comments earlier on.

Didn't even dignify my advice earlier with a response at all.

Thing is, many sees car as a luxury, which is not wrong. It is INDEED a luxury, but luxury items comes with a lot of liabilities which many don't see.

My nephew drives his mom's car, of course will say things like

- driver is better than bus
- parking is more efficient than bus
- electricity is cheaper than bus fare

He doesn't pay for:

1) servicing
2) Road tax ($2K+)
3) Tyres
4) Insurance
5) Instalments

It's always easy to make claims the benefits of driving one and see that it is so wonderful, and yet overlook things like total loss, outstanding loans, interests. Many fail to understand insurance doesn't cover interest, only the first year covers total loss and also car value thereafter.

If you ask my nephew to pay for the other times, he won't be in a hurry to say driving is so good and cheap.

Same for many who buy cars to flex. Money is best seated in wallet and bank, not on a car in SG.

 

[LoUsyGamER]

Thing is, many sees car as a luxury, which is not wrong. It is INDEED a luxury, but luxury items comes with a lot of liabilities which many don't see.

My nephew drives his mom's car, of course will say things like

- driver is better than bus
- parking is more efficient than bus
- electricity is cheaper than bus fare

He doesn't pay for:

1) servicing
2) Road tax ($2K+)
3) Tyres
4) Insurance
5) Instalments

It's always easy to make claims the benefits of driving one and see that it is so wonderful, and yet overlook things like total loss, outstanding loans, interests. Many fail to understand insurance doesn't cover interest, only the first year covers total loss and also car value thereafter.

If you ask my nephew to pay for the other times, he won't be in a hurry to say driving is so good and cheap.

Same for many who buy cars to flex. Money is best seated in wallet and bank, not on a car in SG.

At the end of the day, just spend within means. I could get a new or event car KIA or Hyundai that was fully paid off and enough cash to get it maintain properly. Compared to get a 9yo second hand sport car, which dont know how to the ex drivers maintain the car, with 100% loan, just to YOLO or flex.

 

[EJB]

At the end of the day, just spend within means. I could get a new or event car KIA or Hyundai that was fully paid off and enough cash to get it maintain properly. Compared to get a 9yo second hand sport car, which dont know how to the ex drivers maintain the car, with 100% loan, just to YOLO or flex.

Because younger, more years to go, so they willing to spend, when you get older, your goals change.

Cars are no longer as important as investments and getting returns to sustain retirement. Passive income is more crucial, so our perspective changes.

When younger, you are more carefree in spending. when I was young, I also full loaned my first car, no worries ma, I got 50 years to go before retire. End up down 5K also, but my car was only 55K back then.

 

[koster]

Because younger, more years to go, so they willing to spend, when you get older, your goals change.

Cars are no longer as important as investments and getting returns to sustain retirement. Passive income is more crucial, so our perspective changes.

When younger, you are more carefree in spending. when I was young, I also full loaned my first car, no worries ma, I got 50 years to go before retire. End up down 5K also, but my car was only 55K back then.

Big brother @EJB is right again and again!

 

[morkutao]

My advice to you is - if you cannot buy a car by following MAS rules of putting down at least a 30-40% downpayment in cash, don't get a car.

MAS has these rules in place to prevent people from overleveraging their finances. Trying to circumvent this and get a 100% loan just to own a car - you are going to get into a lot more trouble down the road.

I am seeing a rising number of cases of car owners who overleveraged and end up having to resort to:
- Skipping on paying road tax (and motor insurance in some cases)
- Chalking up endless parking fines (can't afford to topup the cashcard so anyhow park at the non-gantried zones)
- Driving only at night to evade law enforcement when they receive the letter for composition of fines or court of summons letter for overdue unpaid fines

It's a one-way road for these guys, and some cases their vehicles end up getting impounded.
Or their cars make it to the Auction category at sgcarmart when it finally gets repo-ed:
https://www.sgcarmart.com/used-cars...]=8&vts[]=9&trn=2&opc[]=0&avl=a&ord=DATE_DESC

So if you are thinking about 100% loan, don't.
I am sure the other old birds watching this thread will not disagree with my advice above.

bro Comage, thanks for your advice. just wanted to check if it's only possible to do a 100% loan.

reason is 30K could generate returns in the us market, albeit not alot - but still money.

 

[morkutao]

hi all bros here, anyway there's an exporter quoted to buy my car body higher than what the dealers are offering by $500-700 more. (i.e $2,500 (dealer) vs $3,200)

however, he mentioned there'll be no transferring of ownership and for me to de-register myself.

i understand that exporter requires to successfully export out before receiving the bill of lading, which will then be forward to me for me to upload onto onemotoring for parf rebate.

however, i am more comfortable with transferring the vehicle ownership and receiving the full cash immediately.

just for some thoughts above.

 

[EJB]

bro Comage, thanks for your advice. just wanted to check if it's only possible to do a 100% loan.

reason is 30K could generate returns in the us market, albeit not alot - but still money.

I get it, but if you have such mindsets, similarly I would encourage you pay off the bloody car, save up and generate more returns when you are debt free.

1. You have no debts, the car is no longer a liability.

2. You can make back the money.

3. Money mobility is not there when you're doing investments, if you need to take it out, you have to suffer loss of interest, fees etc.

However, yes, I do have friends rather do 100% loan, then take the $ go invest, claiming they make more than the interest.

Interest is 57K for a 200K car, 10 years loan. I don't know how much you need to invest for 10 years to get 57K, and if you can do that, you probably have like 500-800K fluid cash ready, if so... just pay up the stupid car and earn back

Unless you are a trader/forex expert that plays on the edge, invests hefty on risks and margins which easily you get back 57k in 6 months... but if you play that way, you probably can afford to lose 600-1m/2m, so you can also pay up the car first.

 

[EJB]

hi all bros here, anyway there's an exporter quoted to buy my car body higher than what the dealers are offering by $500-700 more. (i.e $2,500 (dealer) vs $3,200)

however, he mentioned there'll be no transferring of ownership and for me to de-register myself.

i understand that exporter requires to successfully export out before receiving the bill of lading, which will then be forward to me for me to upload onto onemotoring for parf rebate.

however, i am more comfortable with transferring the vehicle ownership and receiving the full cash immediately.

just for some thoughts above.

It's not difficult to deregister, issue is after you deregister, the car is no longer road legal, who will pay for towing fees? You cannot drive the car around anymore.

You judge if that $5-700 more is worth it. When I sold my car, AD also offered me very little, my friend offered me $5K more, for that $5K, I DIY everything from retaining carplate to transfer ownership to insurance etc....

Anything that is not in your pocket, is not yours. Go with your gut feel and preference.

 

[morkutao]

It's not difficult to deregister, issue is after you deregister, the car is no longer road legal, who will pay for towing fees? You cannot drive the car around anymore.

You judge if that $5-700 more is worth it. When I sold my car, AD also offered me very little, my friend offered me $5K more, for that $5K, I DIY everything from retaining carplate to transfer ownership to insurance etc....

Anything that is not in your pocket, is not yours. Go with your gut feel and preference.

bro EJB, thanks alot for your utmost support.

i understand to deregister, i will have to upload the bil of lading to onemotoring.

so the procedure will be, tomorrow the exporter will drive/tow away (however ownership still under my name, and i will be paid approx. $3,500 for the car.

according to him, once successful export, 2-4 weeks then will receive the BIL for me to upload.

however, i am uncomfortable as expressed, since anything happened under this 2-4 weeks is still under my name - although mentioned that there will be a sales agreement sign.

 

[morkutao]

I get it, but if you have such mindsets, similarly I would encourage you pay off the bloody car, save up and generate more returns when you are debt free.

1. You have no debts, the car is no longer a liability.

2. You can make back the money.

3. Money mobility is not there when you're doing investments, if you need to take it out, you have to suffer loss of interest, fees etc.

However, yes, I do have friends rather do 100% loan, then take the $ go invest, claiming they make more than the interest.

Interest is 57K for a 200K car, 10 years loan. I don't know how much you need to invest for 10 years to get 57K, and if you can do that, you probably have like 500-800K fluid cash ready, if so... just pay up the stupid car and earn back

Unless you are a trader/forex expert that plays on the edge, invests hefty on risks and margins which easily you get back 57k in 6 months... but if you play that way, you probably can afford to lose 600-1m/2m, so you can also pay up the car first.

noted sir EJB again for this advice.

 

[EJB]

bro EJB, thanks alot for your utmost support.

i understand to deregister, i will have to upload the bil of lading to onemotoring.

so the procedure will be, tomorrow the exporter will drive/tow away (however ownership still under my name, and i will be paid approx. $3,500 for the car.

according to him, once successful export, 2-4 weeks then will receive the BIL for me to upload.

however, i am uncomfortable as expressed, since anything happened under this 2-4 weeks is still under my name - although mentioned that there will be a sales agreement sign.

From my understanding is this.

You deregister is step 1.

Second step is you get paid (in full).

3rd step is you need to show proof of export OR scrap.

Failure to do 3rd step, will result in love letter from LTA (my friend kena because the **** never upload the proof on his behalf, kena $200 fine I think, after explaining to the IO what happened). There is a court attendance required also for the love letter.

You need to make sure this part only.

 

[networked]

guys, scrapping in aug this yr.

direct scrapyard or through deal better deal?

so for the parf i can get back $9k right? or need to 50 % off since its 10 year car.

Intended PARF Rebate Details​

PARF Eligibility
Yes
PARF Eligibility Expiry Date
02 Aug 2025
PARF Rebate Amount
$9,794.00

Intended COE Rebate Details​

COE Expiry Date
02 Aug 2025
COE Category
A - Car up to 1600cc & 97kW (130bhp)
COE Period(Years)
10
QP Paid
$58,700.00
COE Rebate Amount
$15.00
Total Rebate Amount
$9,809.00

 

[EJB]

guys, scrapping in aug this yr.

direct scrapyard or through deal better deal?

so for the parf i can get back $9k right? or need to 50 % off since its 10 year car.

Intended PARF Rebate Details​

PARF Eligibility
Yes
PARF Eligibility Expiry Date
02 Aug 2025
PARF Rebate Amount
$9,794.00

Intended COE Rebate Details​

COE Expiry Date
02 Aug 2025
COE Category
A - Car up to 1600cc & 97kW (130bhp)
COE Period(Years)
10
QP Paid
$58,700.00
COE Rebate Amount
$15.00
Total Rebate Amount
$9,809.00

PARF is at the stated amount. It's what you get back at the end of the car's life.

What you're calculating here is deregistration, not scrapping. Scrapping will nett you a car body value for the metals maybe 1k or so?

You sell it before deregister might get you some more. You scrap also need to send to scrap yard and they'll pay you PARF + body value.

 

[networked]

PARF is at the stated amount. It's what you get back at the end of the car's life.

What you're calculating here is deregistration, not scrapping. Scrapping will nett you a car body value for the metals maybe 1k or so?

You sell it before deregister might get you some more. You scrap also need to send to scrap yard and they'll pay you PARF + body value.

I use the one motoring calculator. Intention is to scrap when coe ends for 10 yr. In this case is get parf or just body value?

 

[EJB]

I use the one motoring calculator. Intention is to scrap when coe ends for 10 yr. In this case is get parf or just body value?

They are separate stuff.

 

[Comage]

I use the one motoring calculator. Intention is to scrap when coe ends for 10 yr. In this case is get parf or just body value?

Just sell it to a dealer. Dealer will pay you PARF rebate plus maybe a couple k more if you're lucky.

Then dealer will turn around, renew it for 5 or 10 years, and sell it at a 15-25k marked up price after paying for that COE.

You can't game the system and get that price above dereg for yourself. So just sell to the dealer.

Scrapping involves quite a bit of paperwork, plus you gotta transport the vehicle down to the far-flung LTA-authorised scrapyards on that last day.

 

[EJB]

Just sell it to a dealer. Dealer will pay you PARF rebate plus maybe a couple k more if you're lucky.

Then dealer will turn around, renew it for 5 or 10 years, and sell it at a 15-25k marked up price after paying for that COE.

You can't game the system and get that price above dereg for yourself. So just sell to the dealer.

Scrapping involves quite a bit of paperwork, plus you gotta transport the vehicle down to the far-flung LTA-authorised scrapyards on that last day.

Thus I mentioned, selling it instead of deregistering it.

I'm sure many would snap up given the cheaper option to renew a COE than get a new car now. A few more K above the deregister + scrap price is definitely possible, unless it's some lemon car like Veri-Worrisomes or high maintenance car like GT-R34.