Should I Renew my COE When it Expires?

[Spinelli_ck]

Manual ftw!!! 1.8l? Still siong.. Pqp 75k + around 10k parf forgone.

 

85k for 10years ddrivin.. I would buy a new cat A liao. It'sjust me..

 

mine is face-lifted FD mini. parf value can take back close to 10k. maybe buy a reasonably good condition FD large when the time comes. in the mean time, hoot more Apple or FB shares.

[Spinelli_ck]

I did not renew my 2.0 l MPV as Cat B PQP + PARF is 86k. Buying Cat A car is 109k (after deducting PARF rebate). So an additional $23k I got a new car to drive for 10 years. Also less worry in the first 5 years due to free servicing and AD warranty. Of course monthly instalment is another matter.

Manual car should not have auto gear problem and so should be cheaper to maintain even for COE car.

 

make sense as the price gap between keeping the old car and buying a new car is not too wide.

[flashbang]

I did not renew my 2.0 l MPV as Cat B PQP + PARF is 86k. Buying Cat A car is 109k (after deducting PARF rebate). So an additional $23k I got a new car to drive for 10 years. Also less worry in the first 5 years due to free servicing and AD warranty. Of course monthly instalment is another matter.

Manual car should not have auto gear problem and so should be cheaper to maintain even for COE car.

 

Worth it if you are ok with downgrading from MPV to sedan eg no longer need so many seats.

[Acema]

It will depend on the ride if you are planning to renew and "re-sell" after afew years.

 

I guess it will be worth to renew if the ride no longer in production, which can attract buyers.

[Wildfaye29]

I have a dilemma. Car is my dad's retirement car, he's going 70y.o.

 

2006 CS3 Manual. 10K annual mileage. $45k new (i am ignoring my $6k parf and treat it as $4.5k dep for 1st 10 years.

 

After 10 yrs, annual mileage will drop to about 5k per year. Current FC is about 12.5km/l.

 

Additional road tax surcharge I feel is negligible. Also car is well maintained, regular oil changes and servicing done.

 

We have no issues coming up with $65k to renew. Why renew? Because 1) low mileage going forward, 2) old man, slow reflexes, new car if kena incident, heart pain. 3) maybe cannot get loan due to age? (can I be guarantor for the loan?)

 

If buy new, eg, Kia K3, $100k, down $40k, means save $25k in upfront cash. Remaining $60k loan 5years (2.5%?) additional cost of borrowing will become $67.5k. Total cost will be 40+67.5-6(parf of lancer)=101.5k for the next 10years before Kia's parf of $7k. therefore dep is 101.5-7/10=9.45k

(NB: kia k3 no cevs rebate, FC is stated 14.7km/l)

 

If buy new, eg. Mit Attrage ($90k, down $36k, save $29k in upfront cash. Remaining $54k loan 5years (2.5%?) additional cost of borrowing will become $60.75k. Total cost will be 36+60.75-6(parf of lancer)=90.75k for the next 10years before Mit's parf of $2.5k. therefore dep is 90.75-2.5/10=8.825k

(NB: mit attage after cevs rebate, remain parf is 5k only, FC is stated 20.8km/l)

 

Does it make sense to renew for me? Have I missed out anything in consideration?

[Doppel]

I have a dilemma. Car is my dad's retirement car, he's going 70y.o.

 

2006 CS3 Manual. 10K annual mileage. $45k new (i am ignoring my $6k parf and treat it as $4.5k dep for 1st 10 years.

 

After 10 yrs, annual mileage will drop to about 5k per year. Current FC is about 12.5km/l.

 

Additional road tax surcharge I feel is negligible. Also car is well maintained, regular oil changes and servicing done.

 

We have no issues coming up with $65k to renew. Why renew? Because 1) low mileage going forward, 2) old man, slow reflexes, new car if kena incident, heart pain. 3) maybe cannot get loan due to age? (can I be guarantor for the loan?)

 

If buy new, eg, Kia K3, $100k, down $40k, means save $25k in upfront cash. Remaining $60k loan 5years (2.5%?) additional cost of borrowing will become $67.5k. Total cost will be 40+67.5-6(parf of lancer)=101.5k for the next 10years before Kia's parf of $7k. therefore dep is 101.5-7/10=9.45k

(NB: kia k3 no cevs rebate, FC is stated 14.7km/l)

 

If buy new, eg. Mit Attrage ($90k, down $36k, save $29k in upfront cash. Remaining $54k loan 5years (2.5%?) additional cost of borrowing will become $60.75k. Total cost will be 36+60.75-6(parf of lancer)=90.75k for the next 10years before Mit's parf of $2.5k. therefore dep is 90.75-2.5/10=8.825k

(NB: mit attage after cevs rebate, remain parf is 5k only, FC is stated 20.8km/l)

 

Does it make sense to renew for me? Have I missed out anything in consideration?

You didn't miss out anything: bottom line, renew COE, depreciation will always be cheaper, even taking into account higher road tax.

 

Good to free up your cash flow too.

[will80]

I have a dilemma. Car is my dad's retirement car, he's going 70y.o.

 

2006 CS3 Manual. 10K annual mileage. $45k new (i am ignoring my $6k parf and treat it as $4.5k dep for 1st 10 years.

 

After 10 yrs, annual mileage will drop to about 5k per year. Current FC is about 12.5km/l.

 

Additional road tax surcharge I feel is negligible. Also car is well maintained, regular oil changes and servicing done.

 

We have no issues coming up with $65k to renew. Why renew? Because 1) low mileage going forward, 2) old man, slow reflexes, new car if kena incident, heart pain. 3) maybe cannot get loan due to age? (can I be guarantor for the loan?)

 

If buy new, eg, Kia K3, $100k, down $40k, means save $25k in upfront cash. Remaining $60k loan 5years (2.5%?) additional cost of borrowing will become $67.5k. Total cost will be 40+67.5-6(parf of lancer)=101.5k for the next 10years before Kia's parf of $7k. therefore dep is 101.5-7/10=9.45k

(NB: kia k3 no cevs rebate, FC is stated 14.7km/l)

 

If buy new, eg. Mit Attrage ($90k, down $36k, save $29k in upfront cash. Remaining $54k loan 5years (2.5%?) additional cost of borrowing will become $60.75k. Total cost will be 36+60.75-6(parf of lancer)=90.75k for the next 10years before Mit's parf of $2.5k. therefore dep is 90.75-2.5/10=8.825k

(NB: mit attage after cevs rebate, remain parf is 5k only, FC is stated 20.8km/l)

 

Does it make sense to renew for me? Have I missed out anything in consideration?

 

Since you have no issue on cashflow on whether to buy new or renew COE, I think the most important part is your dad. Ask him whether he want which. Let him had the final decision since this is going to be his retirement car.

[Mkl22]

I have a dilemma. Car is my dad's retirement car, he's going 70y.o.

 

2006 CS3 Manual. 10K annual mileage. $45k new (i am ignoring my $6k parf and treat it as $4.5k dep for 1st 10 years.

 

After 10 yrs, annual mileage will drop to about 5k per year. Current FC is about 12.5km/l.

 

Additional road tax surcharge I feel is negligible. Also car is well maintained, regular oil changes and servicing done.

 

We have no issues coming up with $65k to renew. Why renew? Because 1) low mileage going forward, 2) old man, slow reflexes, new car if kena incident, heart pain. 3) maybe cannot get loan due to age? (can I be guarantor for the loan?)

 

If buy new, eg, Kia K3, $100k, down $40k, means save $25k in upfront cash. Remaining $60k loan 5years (2.5%?) additional cost of borrowing will become $67.5k. Total cost will be 40+67.5-6(parf of lancer)=101.5k for the next 10years before Kia's parf of $7k. therefore dep is 101.5-7/10=9.45k

(NB: kia k3 no cevs rebate, FC is stated 14.7km/l)

 

If buy new, eg. Mit Attrage ($90k, down $36k, save $29k in upfront cash. Remaining $54k loan 5years (2.5%?) additional cost of borrowing will become $60.75k. Total cost will be 36+60.75-6(parf of lancer)=90.75k for the next 10years before Mit's parf of $2.5k. therefore dep is 90.75-2.5/10=8.825k

(NB: mit attage after cevs rebate, remain parf is 5k only, FC is stated 20.8km/l)

 

Does it make sense to renew for me? Have I missed out anything in consideration?

You need to add the additional road tax. This narrows the gap with renewed Coe of 7.1k vs 8.8k. To be fair claculate both with no loans or 65k you going to plonk down on renewing the Coe. I expect the difference to be closer to 1k a year. Assuming that this is likely the last car you dad can drive, maybe it might make him happier with a new car, since the difference isn't big.

[Mkl22]

The additional road tax to keep the lancer is $516.60 per year more than the attrage. So depreciation is now. 7.616k/ year. So the additional road tax is not trivial.

 

With no loans the attrage is 8.15k/year.

With 65k down. It's becomes 65+26.25-6-2.5= 8.275k/year. Assuming the loan is approx 2 years to keep the same 1k a month in installments.

 

So for $534, buy new.

And depending on his usage it might also make sense to go with a weekend car?

Edited June 1, 2015 by Mkl22

[flashbang]

Get him a new car that he likes, since there is no issue on cashflow. It may well be the last car he gets to drive.

[zerobim08]

Get him a new car that he likes, since there is no issue on cashflow. It may well be the last car he gets to drive.

This should be the way. The excitement of a new car is one of those things in life you look forward to.

 

Don't need to calculate too much. Renewing is always the more economical (and wiser option) saving at least $4k a year.

[Limwsv]

I have a dilemma. Car is my dad's retirement car, he's going 70y.o.

 

2006 CS3 Manual. 10K annual mileage. $45k new (i am ignoring my $6k parf and treat it as $4.5k dep for 1st 10 years.

 

After 10 yrs, annual mileage will drop to about 5k per year. Current FC is about 12.5km/l.

 

Additional road tax surcharge I feel is negligible. Also car is well maintained, regular oil changes and servicing done.

 

We have no issues coming up with $65k to renew. Why renew? Because 1) low mileage going forward, 2) old man, slow reflexes, new car if kena incident, heart pain. 3) maybe cannot get loan due to age? (can I be guarantor for the loan?)

 

If buy new, eg, Kia K3, $100k, down $40k, means save $25k in upfront cash. Remaining $60k loan 5years (2.5%?) additional cost of borrowing will become $67.5k. Total cost will be 40+67.5-6(parf of lancer)=101.5k for the next 10years before Kia's parf of $7k. therefore dep is 101.5-7/10=9.45k

(NB: kia k3 no cevs rebate, FC is stated 14.7km/l)

 

If buy new, eg. Mit Attrage ($90k, down $36k, save $29k in upfront cash. Remaining $54k loan 5years (2.5%?) additional cost of borrowing will become $60.75k. Total cost will be 36+60.75-6(parf of lancer)=90.75k for the next 10years before Mit's parf of $2.5k. therefore dep is 90.75-2.5/10=8.825k

(NB: mit attage after cevs rebate, remain parf is 5k only, FC is stated 20.8km/l)

 

Does it make sense to renew for me? Have I missed out anything in consideration?

 

 

Knock wood first. Hope you are wealthy or have high income if you want to listen to some of the advice here.

 

Given your dad is in his seventies, he should still be in good health. However, medical bills are climbing and despite whatever medishield+ and so on, will still represent a significant hit if you need to call your cash to help out.

 

As many here have said, it's your own decision in the end. But I will be very careful with my money if I am you.

[slowloris25]

Life is short and unpredictable. Your father is already in his 70s. I think a new car, which is probably safer to drive, would be nice for him to drive. No regrets?

 

Buy a new car if financially your family is able to. :)

[Mrmilktooth]

I would think it's better to take public transport since senior citizens have free mrt, bus rides. Even the transfer in between very cheap..

 

My dad told me about this.. I would not have known... So can save the cash and enjoy it somewhere like a holiday..

[Limwsv]

 

 

Knock wood first. Hope you are wealthy or have high income if you want to listen to some of the advice here.

 

Given your dad is in his seventies, he should still be in good health. However, medical bills are climbing and despite whatever medishield+ and so on, will still represent a significant hit if you need to call your cash to help out.

 

As many here have said, it's your own decision in the end. But I will be very careful with my money if I am you.

 

To help you quantify the risk. Here are some statistics.

 

 

From age 70 - 80, the next 10 years that your dad will be driving a car, the risk of requiring medical attention in a hospital due to medical reasons will increase from 25% to 33%.

 

In each case of hospitalization, the cost table will be

 

You can check the lower class wards here yourself.

https://www.moh.gov.sg/content/moh_web/home/statistics/healthcare_institutionstatistics/average_hospitalinpatientbillsizetables/Public_Hospitals-Medical_Specialties.html

[Limwsv]

I would think it's better to take public transport since senior citizens have free mrt, bus rides. Even the transfer in between very cheap..

 

My dad told me about this.. I would not have known... So can save the cash and enjoy it somewhere like a holiday..

 

Yes, that may be a good idea if his dad is willing to give up driving. More statistic relating to accidents and age.

 

 

Age 60 group of drivers has the highest incidents of vehicular accidents that are reported. About 15% of the accidents on our roads in Singapore comes from this group.

[Celicar]

If you have lots of cash on hand to pay for the downpayment of new car, surely will go for new car.

It is precisely for this reason that second hand car prices are mad now. The dealers know many pple not willing to come up so much cash so will consider second hand, so they jack up price. Put your head down, they will not hesitate to chop carrot.

[Mkl22]

 

 

Knock wood first. Hope you are wealthy or have high income if you want to listen to some of the advice here.

 

Given your dad is in his seventies, he should still be in good health. However, medical bills are climbing and despite whatever medishield+ and so on, will still represent a significant hit if you need to call your cash to help out.

 

As many here have said, it's your own decision in the end. But I will be very careful with my money if I am you.

So you are saying do not renew or buy a new car. But how does this answer his question.? I do not think he needs our advice to not buy. But to renew or buy new.