Should I Renew my COE When it Expires?

[MichelleTan_160477]

I would like to renew my COE for my toyota harrier . my scrap value is about 20 k and my car body about 3 k .

if i renew coe this scrap value would be gone. lets say coe is 75000 currently . my depre would be 9800 per mth. do u guys think its worth it? now currently market price for a small car already depre 10 k .

[Amazon777]

Better off buy a brand new vezel or qashqai.

[Dafansu]

I would like to renew my COE for my toyota harrier . my scrap value is about 20 k and my car body about 3 k .

if i renew coe this scrap value would be gone. lets say coe is 75000 currently . my depre would be 9800 per mth. do u guys think its worth it? now currently market price for a small car already depre 10 k .

your parf is too high, not worth to renew, my 5 cents.

[Limwsv]

I would like to renew my COE for my toyota harrier . my scrap value is about 20 k and my car body about 3 k .

if i renew coe this scrap value would be gone. lets say coe is 75000 currently . my depre would be 9800 per mth. do u guys think its worth it? now currently market price for a small car already depre 10 k .

 

I will consider the state of my Harrier first, ie mileage and maintenance.

 

A new Harrier will cost you anything from 137K - 157K, with depreciation around 14K per year.

For depreciation to drop to your current level, COE has to move south by another 40K, ie 4K per year, back down to 18K Cat B.

 

If your Harrier is in good condition (likely to be as most Toyota cars are), you may have to spent about 3K - 10K over the next few years to replace some of the aging parts. So, assume 10K and you renew for 10 years (full PQP) means another 1K year.

 

Still worth it to renew. Note that you still can redeem your COE rebate should you choose to scrap it during its renew period. The only thing you would have lost is the 20K PARF, ie 2K per year.

[MichelleTan_160477]

Better off buy a brand new vezel or qashqai.

 

A vezel and Qashqai does not give me the power and comfort of the harrier if u have driven one. sad to say even the new harrier isnt as comfort as the old one because of the rx300 body.

 

I will consider the state of my Harrier first, ie mileage and maintenance.

 

A new Harrier will cost you anything from 137K - 157K, with depreciation around 14K per year.

For depreciation to drop to your current level, COE has to move south by another 40K, ie 4K per year, back down to 18K Cat B.

 

If your Harrier is in good condition (likely to be as most Toyota cars are), you may have to spent about 3K - 10K over the next few years to replace some of the aging parts. So, assume 10K and you renew for 10 years (full PQP) means another 1K year.

 

Still worth it to renew. Note that you still can redeem your COE rebate should you choose to scrap it during its renew period. The only thing you would have lost is the 20K PARF, ie 2K per year.

 

Hi , thnaks for your reply. I have currently changed the mounting, water pump, shock absorbers and did a good servicing. the car is running very well and I feel heartbroken to scrap it after spending all these maintenance.

[BobbyTan_74287]

 

A vezel and Qashqai does not give me the power and comfort of the harrier if u have driven one. sad to say even the new harrier isnt as comfort as the old one because of the rx300 body.

 

Hi , thnaks for your reply. I have currently changed the mounting, water pump, shock absorbers and did a good servicing. the car is running very well and I feel heartbroken to scrap it after spending all these maintenance.

I think you should renew your coe as now the PQP for big car coming down and so is lesser to renew. Besides since your car is in such a good condition.

[cllq]

I would like to renew my COE for my toyota harrier . my scrap value is about 20 k and my car body about 3 k .

if i renew coe this scrap value would be gone. lets say coe is 75000 currently . my depre would be 9800 per mth. do u guys think its worth it? now currently market price for a small car already depre 10 k .

 

9.8k per year la. u might have type wrongly

[KoreanLover]

The problem with many Singaporeans is they are willing to accept "unreasonable" price of a car, they doesn't believe "boycott" is the only way to preventing price hike.

 

 

 

Other than that, I believe the downpayment also plays a big role in the decision making process.

 

Yes, it is true that new cars now have a lower depreciation than 2nd hand cars but not everyone can afford a $40k++++ downpayment

[JSTong]

Dear everyone who replied! Thank you very much for the info and insights.

 

Lets not digress. Its whether its worthwhile to renew or to buy new.

 

As mentioned, I will not consider the $6k parf to add on the depreciation of the renewed car. It will just be $4.5k depreciation for the first 10 years. I do not understand why everyone adds the parf of the car to the renewed coe to increase the depreciation. Its lost after the 10 years anyway.

 

Renew

 

$65k - $6.5k per year. direct, straighforward.

 

Buy new

 

$90k - $6k(parf of old car) - $5k(parf of new car) =$79k. $7.9k per year (exclude interest).

 

In direct comparison, its only $1.4k extra per year (no considering the road tax difference).

 

I have not decided. But it does seem for now that buying new does seem to make sense after all.

 

 

If U renew your COE your total depreciation if u add in the original cost of your car it should be much lesser because your total nos of years is 20 instead of 10. Do consider this also !

[Kerwen]

Dear everyone who replied! Thank you very much for the info and insights.

 

Lets not digress. Its whether its worthwhile to renew or to buy new.

 

As mentioned, I will not consider the $6k parf to add on the depreciation of the renewed car. It will just be $4.5k depreciation for the first 10 years. I do not understand why everyone adds the parf of the car to the renewed coe to increase the depreciation. Its lost after the 10 years anyway.

 

Renew

 

$65k - $6.5k per year. direct, straighforward.

 

Buy new

 

$90k - $6k(parf of old car) - $5k(parf of new car) =$79k. $7.9k per year (exclude interest).

 

In direct comparison, its only $1.4k extra per year (no considering the road tax difference).

 

I have not decided. But it does seem for now that buying new does seem to make sense after all.

 

 

 

technically, u shld not include the parf of the old car to calculate the new car depreciation.

so the new car dep shld be 8.5k/yr

[JSTong]

I would like to renew my COE for my toyota harrier . my scrap value is about 20 k and my car body about 3 k .

if i renew coe this scrap value would be gone. lets say coe is 75000 currently . my depre would be 9800 per mth. do u guys think its worth it? now currently market price for a small car already depre 10 k .

 

U r in the same boat wit me...My Car COE going to expire by the end of this August. Do some Calculation and I share it wit u :

 

Estimated Depreciation For Renewing 2.0Ltr car

5yrs(2 L) 10 yrs(2L) New Car1.6

1 COE-PQP August15 35,227 70,454 125,000

2 PARF-Rebates 15,277 15,227 -15,277 Rebates if deregister Old Car

3 PARF at end of 10 yr for New Car -10,000

4 Additional Rd Tax: 1210/yr

1st Year 10% 1331 1331 744

2nd Year 20% 1452 1452 744

3rd Year 30% 1573 1573 744

4th Year 40% 1694 1694 744

5Th Year 50% 1815 1815 744

6th-10th 50% 9075 3720

5 Total Cost : 58,369 102,671 107,163

6 Depreciation/year 11,674 10,267 10,716

7 Buying Cost 2005 89,000 89,000

8 Total Depreciation Year 15 20

9 Total Actual Depreciation cost 8,282 7,973

( Item 1 + 7 ) / item 8

- If i just calculate your depreciation in another 10 years after renewing COE , then dowgrade to 1.6L car is better.

- If i Calculate the Total depreciation from the first time i bought the car then It's worth it to renew. Also depend on the condition of car , Mileage and maybe sentimental attchment.

- If I decide not to Downgrade to 1.6 L and maybe get a new 2.0 L car then it's definitely cheaper in renewing my COE

- The Prevailing Quota Premium (PQP) for August15 , is as shown above...Have already checked wit LTA.

- After doing the above maths I decided to renew my COE for another 5 years. Reason : Mileage still low and after 5 years maybe already exceeded 200K km. My experience don keep Jap's car after it hit 200k. and also am not willing to pay 70K for 10yrs COE.

- The onus is on U. U can input with your own real Road tax and cost of your car when u bought.

 

Hopefully the table will hold when I posted .

 

 

 

 

Edited August 2, 2015 by JSTong

[MichelleTan_160477]

 

U r in the same boat wit me...My Car COE going to expire by the end of this August. Do some Calculation and I share it wit u :

 

Estimated Depreciation For Renewing 2.0Ltr car

5yrs(2 L) 10 yrs(2L) New Car1.6

1 COE-PQP August15 35,227 70,454 125,000

2 PARF-Rebates 15,277 15,227 -15,277 Rebates if deregister Old Car

3 PARF at end of 10 yr for New Car -10,000

4 Additional Rd Tax: 1210/yr

1st Year 10% 1331 1331 744

2nd Year 20% 1452 1452 744

3rd Year 30% 1573 1573 744

4th Year 40% 1694 1694 744

5Th Year 50% 1815 1815 744

6th-10th 50% 9075 3720

5 Total Cost : 58,369 102,671 107,163

6 Depreciation/year 11,674 10,267 10,716

7 Buying Cost 2005 89,000 89,000

8 Total Depreciation Year 15 20

9 Total Actual Depreciation cost 8,282 7,973

( Item 1 + 7 ) / item 8

- If i just calculate your depreciation in another 10 years after renewing COE , then dowgrade to 1.6L car is better.

- If i Calculate the Total depreciation from the first time i bought the car then It's worth it to renew. Also depend on the condition of car , Mileage and maybe sentimental attchment.

- If I decide not to Downgrade to 1.6 L and maybe get a new 2.0 L car then it's definitely cheaper in renewing my COE

- The Prevailing Quota Premium (PQP) for August15 , is as shown above...Have already checked wit LTA.

- After doing the above maths I decided to renew my COE for another 5 years. Reason : Mileage still low and after 5 years maybe already exceeded 200K km. My experience don keep Jap's car after it hit 200k. and also am not willing to pay 70K for 10yrs COE.

- The onus is on U. U can input with your own real Road tax and cost of your car when u bought.

 

Hopefully the table will hold when I posted .

 

 

 

 

 

Hi, thanks for the info. by the way i bought my car 3 years ago, that time left 4 years. my depre is about 12 k per year. based on current 12k depre I can only get a small car for that .

may i know which 2 litre car are u driving which u renewed for 5 years only. whats your scrap value . jap car reach 200k still is good. compare to conti cars. all cars who reached above 200 k is due for more consideration whether to renew coe or not.

 

Edited August 2, 2015 by MichelleTan_160477

[JSTong]

 

Hi, thanks for the info. by the way i bought my car 3 years ago, that time left 4 years. my depre is about 12 k per year. based on current 12k depre I can only get a small car for that .

may i know which 2 litre car are u driving which u renewed for 5 years only. whats your scrap value . jap car reach 200k still is good. compare to conti cars. all cars who reached above 200 k is due for more consideration whether to renew coe or not.

 

 

My ride is the 2L Camry. I normally don go after 200K mileage... a lot of problems ...Engine , gearbox all need Overhaul... and dat's not cheap.

 

FYI also if u renew for 5 years ...the COE cannot be renewed again it has to be deregistered after 5 years ....LTA's regulation ...I don understand the logic of it. But if U renew 10 years ..U can still renew your COE after dat. If after renewing your COE maybe after 3 years u decide to de-register , LTA will refund the pro-rata amount left of your unused COE. There is no more PARF rebates for car exceeding 10 years.

[Dark_flan]

My ride is 1.6l which maybe cheaper to renew other than unforeseeable maintenance cost. However I have decide 90% buy new car as I do not see the need to pay extra for the PQP. $62k vs $55k for 10 yrs furthermore loss of $10k PARF adds up $15K. Yeah I know new car is still on the higher side but not by much considering warranty and free servicing. Also a different feel to my driving experience.