5yr+ car... trade in now or scrap at 7th yr

[Passion]

Seriously,for COE to come down,I think it's difficult.Now the COE pegged on de-register car to get COE and growth rate or 1.5%,we hardly see any growth.On one hand it's good,on the other,our road slowly will be flooded with previous generation car.For example,the new vios and new Altis,been push out into the market for quite sometime,but we hardly see it.It's not that there's no demand,just supply of COE is not there.Also,now people tends to drive the car till year 10,which is also another factor to cause the quota of COE to remain low.Thus,in the short time for COE to come down,I would say,difficult.The influx of car begins in around jul 2005 onwards.If we look at it plus 10 years,the next down trend of COE will only be around jul 2015.It may not come down as well,reason being people who used to drive,would want to drive after the 10 years of ownership.Even before they scrapped their car,they would move in to book another car.Current COE is pegged at actually deregistration right? If so,they will have to buy the car at higher price and once their COE expires, then the car price will come down slowly. If not,wait for another round of economic crash,COE will come down a little.

Edited November 29, 2010 by Passion

[Maroon5]

say u can get 30k for ur car, with new cars now easily in the 70k range, u need to cough out cash of 40k or take similar loan...if u wanna talk abt financial perspectives, i thk the answer is clear.

[Zanter]

Actually its quite easy for COE to crash. Just need a nuclear war to break out between China & USA

[Jamesc]

A brother of mine traded-in his just last weekend (numerous mechanical and electrical issues with the car to entertain).

Care to share which make of car he traded in?

[Silver_blade]

On the topic of scrap car at 7th year. I wonder if a 7yr old car can still be sold to 2nd hand dealer or scraping it is the only way to go?

[Jamesc]

Actually its quite easy for COE to crash. Just need a nuclear war to break out between China & USA

Whats the good of having a car if you dun have a planet to drive on?

[13177]

No matter wht, dun think COE will go down now.

[Celicar]

Actually if your car can make it until 10 yr mark, it is better to drive till then and change. Unles your car cannot make it lor.

 

In general, I agree. To achieve the lowest possible yearly depreciation for any given car, the owner must drive it all the way to the ground at the 10th year. To sell at any other time would cause your yearly depreciation to be higher otherwise.

 

But that disregards whether your car has mechanical issues (in which case you will likely suffer non-monetary distress) and COE at the time you need to get another car.

 

The key is to always treat the car as a good-to-have. That way, you will not be at the total mercy of the COE. I know, easier said than done.

 

Speaking of COE, if it can go from low to high before, it can also come down again. I'd bet back when COE was 6-figure if you asked someone then whether COE can be $10K, they will also ask you to check into IMH. But it happened. And it can happen again.

[Galantspeedz]

guys, i'm having a question now so seeking some feedback.

 

i would luv to change my ride now but wife doesnt wanna for practical reasons

 

car is fully paid and it's a jap 1.5L car bought new in Sep 2005 and so far trade in price quoted is between 24K and 28K.

 

from onemotoring webby some details of my car:

OMV 12.9K

QP paid 14K

Minimum PARF 7K

 

from a financial "payback" point of view would trading in or selling the car now give me back more money than scrapping it say on 7th year?

 

sorry, first ride so this is all new to me so hoping for gurus to chip in your advices...

 

cheerios!

 

fianancial point of view is the longer you use.. the lesser your depreciation per annum will be.

 

eg:

use 3 yrs about 8k/p.a

use 5yrs about 7.5k/p.a

use 7 yrs about 7k/ p.a

 

since you fully paid up your car.... the earlier you sell you sure get more money.... but this does not mean you lose less...

 

alot of people is mistaken and think they take back more money means they lose less... because to calculate how much you lose is to divide money loss / no. yrs of car used

[13177]

In general, I agree. To achieve the lowest possible yearly depreciation for any given car, the owner must drive it all the way to the ground at the 10th year. To sell at any other time would cause your yearly depreciation to be higher otherwise.

 

But that disregards whether your car has mechanical issues (in which case you will likely suffer non-monetary distress) and COE at the time you need to get another car.

 

The key is to always treat the car as a good-to-have. That way, you will not be at the total mercy of the COE. I know, easier said than done.

 

Speaking of COE, if it can go from low to high before, it can also come down again. I'd bet back when COE was 6-figure if you asked someone then whether COE can be $10K, they will also ask you to check into IMH. But it happened. And it can happen again.

I find nowadays car quality not as gd not before, so dun think it can last 10 yrs! Unless u dun mind to fork out money to change everything in your car in order for the car to last till 10 yr.

 

Anyway, COE confirm will come down again but confirm not now lor.

[Zanter]

I find nowadays car quality not as gd not before, so dun think it can last 10 yrs! Unless u dun mind to fork out money to change everything in your car in order for the car to last till 10 yr.

 

Anyway, COE confirm will come down again but confirm not now lor.

 

This is confirmed chopped true. My friend's Thaiyota is giving problems at 2.5 years till he fed up.

 

Original Jap or German cars should not have problem lasting 10 years albeit higher maintainance. I think few people will have the patience to maintain a Thai. Msian or SA car last till end of 10 years. Having said I am not sure people will wanna keep 5 years old cars due to face value.

[Zanter]

Whats the good of having a car if you dun have a planet to drive on?

 

It's true. I dont think China or USA is so stupid as to start a Mutual Assured Destruction. North Korean may be the 1st country that uses a nuclear weapon just to prove a point that it could.

[Luoxy]

Keep your car to 10 years!!!!!!!!

[13177]

This is confirmed chopped true. My friend's Thaiyota is giving problems at 2.5 years till he fed up.

 

Original Jap or German cars should not have problem lasting 10 years albeit higher maintainance. I think few people will have the patience to maintain a Thai. Msian or SA car last till end of 10 years. Having said I am not sure people will wanna keep 5 years old cars due to face value.

If the car can make it, i dun mind to drive a car for 10 yrs.

[Zanter]

If the car can make it, i dun mind to drive a car for 10 yrs.

 

Yeah but few cars can make it to 10 years nowadays. They are not designed to last a lifetime unlike in the past. If cars last too long, then fewer people will buy the new models.

[Silver_blade]

This is confirmed chopped true. My friend's Thaiyota is giving problems at 2.5 years till he fed up.

 

Original Jap or German cars should not have problem lasting 10 years albeit higher maintainance. I think few people will have the patience to maintain a Thai. Msian or SA car last till end of 10 years. Having said I am not sure people will wanna keep 5 years old cars due to face value.

I feel it is the willingness to repair a MIT car vs a MIJ ones. I feel cars, generally can still last 10yrs or more...but we just have to accept that there will be parts that needed replacement as part and parcel of car ownership. Cars has been relatively cheap in the last decade and most of us are used to replacing car every 2-3yrs and didn't have to face replacement of wear and tear parts.

[Ben5266]

guys, i'm having a question now so seeking some feedback.

 

i would luv to change my ride now but wife doesnt wanna for practical reasons

 

car is fully paid and it's a jap 1.5L car bought new in Sep 2005 and so far trade in price quoted is between 24K and 28K.

 

from onemotoring webby some details of my car:

OMV 12.9K

QP paid 14K

Minimum PARF 7K

 

from a financial "payback" point of view would trading in or selling the car now give me back more money than scrapping it say on 7th year?

 

sorry, first ride so this is all new to me so hoping for gurus to chip in your advices...

 

cheerios!

Sep05, your coe should be about $16k.

Your annual depreciation for COE is $1.6k.

Your QP is 14k. 5 year to 7 year, your loss is 10% of QP = $1.4k.

So, if you sell your car at 7 year, your depreciation for the next 2 years will be $3.2k + $1.4k + loss on body value = $4.6k + loss on body.

Loss on body should be between $2-4k only..

 

If you get a new 1.5-1.6L car now, your depreciation is easily $6-7k per year for the next 10 years.

Drive your car to 8-9 years, if it is not giving you problem. By then, COE will be coming down and it will be good time for you to change.

 

If you just received big bonus payout and would like to pamper yourself and your family, then by all means. The current trade in price is irrelevant.

 

[Duckduck]

Yeah but few cars can make it to 10 years nowadays. They are not designed to last a lifetime unlike in the past. If cars last too long, then fewer people will buy the new models.

 

only SG have such mentality. US & europe most cars are driven 200,000-400,000km before replacement. easily more than 10 yrs.