Should I Renew my COE When it Expires?

[Amazon777]

  On 5/16/2014 at 4:53 AM, Picanto said:

7 to 8 yr old cars are highly marked up by dealers. in short, its damm expensive and you do not know whether its in the lemon category.

 

since the honda is in quite good condition, makes more sense to renew coe

 

70k and 100k is a lot of difference

 

There are direct sellers sales. We are not talking abt "wanted" models like Merc/BMW. We are talking abt bread and butter Nissan/Toyota, there are so many on sales, sunny/latio, Altis/vios, city/civic. Lancer GLX, Getz/Verna. Just go for the old models design which many owners are anxious to let go after upgrading to their new cars. Don't expect cheap price if one is looking at current newer models. Since the owner jazz gearbox is having issue, should consider scrap instead of renew PQP

 

Just last week my low budget friend bought a 8yrs old Nissan sunny for $5k yearly depreciation. If one is adventurous enough, there are cheap auction cars. Yes I did bid/bought a old Merc W124 from a bank many years ago at scrap value which I drove for 6 months and scrap it earlier and retained the "888" number plate

Edited May 16, 2014 by Amazon777

[Baal]

  On 5/16/2014 at 7:57 AM, Enye said:

 

no fixed... tikam tikam

 

but well known problem in KAH motors for that generation

 

new Ody no longer using that start clutch according to SE

 

CVT with torque converter

 

Sounds like a step forward towards reliability.

[Enye]

  On 5/16/2014 at 8:15 AM, Baal said:

 

Sounds like a step forward towards reliability.

 

reliable old tech....

 

with higher transmission losses

 

[LoneCatFish]

Even though my car still have two more years to go, I started to think about it too. As I own this car from new, I am sure of the condition.

 

Assuming COE 60k.

 

COE + scrap value + 10k put aside for next 10 yrs major repair is about 1/2 price of a new equivalent car now.

 

I guess it make sense for me to renew. Any suggestion?

 

 

[Baal]

  On 5/16/2014 at 8:23 AM, Enye said:

 

reliable old tech....

 

with higher transmission losses

 

 

cvt w starter clutch more efficient than cvt w torque converter ?

  On 5/16/2014 at 8:32 AM, LoneCatFish said:

Even though my car still have two more years to go, I started to think about it too. As I own this car from new, I am sure of the condition.

 

Assuming COE 60k.

 

COE + scrap value + 10k put aside for next 10 yrs major repair is about 1/2 price of a new equivalent car now.

 

I guess it make sense for me to renew. Any suggestion?

 

 

 

My take is that as long as the car's omv <20k & no chronic problem/maj accident before, it makes sense to PQP it.

 

Esp since u have probably kept track of the history of the parts that have been replaced & can forecast the next item inline that would give way & start making the necessary provisions early to avoid sudden surge in bills.

 

Able to share whats ur ride?

[LoneCatFish]

  On 5/16/2014 at 8:43 AM, Baal said:

 

Able to share whats ur ride?

 

Just a humble Japanese coupe

[Lincoln]

  On 5/16/2014 at 8:32 AM, LoneCatFish said:

Even though my car still have two more years to go, I started to think about it too. As I own this car from new, I am sure of the condition.

 

Assuming COE 60k.

 

COE + scrap value + 10k put aside for next 10 yrs major repair is about 1/2 price of a new equivalent car now.

 

I guess it make sense for me to renew. Any suggestion?

 

 

 

The current price of a new car is marked up very high, almost its OMV value. See example of Altis:

 

Selling Price $117,888.00

OMV $18,596.00

Custom Duty (20% OMV) $3,719.20

7% GST $1,562.06

ARF $13,596.00

Regn Fee $140.00

COE $60,002.00

TOTAL COST $97,615.26

Borneo Motors Margin $20,272.74

 

We are paying almost $20k in profit margin to Borneo, in addition to all the other costs components. A renewed car is only $8-$9k (forgo 50% of ARF) and then can be use for 10 years after paying for a new COE. I will be doing it if the car is very well maintained and can last for at least another 5 years after renewal. If you can, renewed it for 10 years. Anytime you scrapped the COE car, you can always get the remaining COE value back.

 

I do think that COE will drop to low levels (says <$30k) in 2016 and dealers margin will also dropped as well (becos they can sell more cars during 2016). This will make you think that new car is actually worthwhile in the new future. However, my suggestion is to resist purchasing a new car then if you are really financially prudent.

Edited May 16, 2014 by Lincoln

[Baal]

  On 5/16/2014 at 8:48 AM, LoneCatFish said:

 

Just a humble Japanese coupe

 

If its the MX-5 2.0 / MRS / RX-8,

 

that would mean 13-15k loss in parf, not to mention the road tax eventually hitting 150%.

 

Looks heavy but in view that a FT86 would cost 165k~, guess that would mean ur saving about 50% by PQPing it.

 

MX-5 ~ maybe

 

MRS ~ most likely

 

RX-8 ~ most likely

Edited May 16, 2014 by Baal

[LoneCatFish]

  On 5/16/2014 at 9:05 AM, Baal said:

 

 

Looks heavy but in view that a FT86 would cost 165k~, guess that would mean ur saving about 50% by PQPing

 

You are right, I am comparing against FT86. Most importantly, I like the car very much, so very likely will PQP it. Time to start saving up that 60~70k cash.

[rocknroll]

  On 5/16/2014 at 8:00 AM, Amazon777 said:

Yes I did bid/bought a old Merc W124 from a bank many years ago at scrap value which I drove for 6 months and scrap it earlier and retained the "888" number plate

 

LOL, obviously the "888" plate didn't bring the previous owner any luck ;).

[rocknroll]

  On 5/16/2014 at 3:29 AM, DennisWong said:

I'm also having the same dilemma - whether to renew COE or buy new car.

 

I currently own a Honda Jazz. COE expires in Mar 2015.

 

Condition of my car

pretty decent, except the gearbox got jerking/shuddering problem.

Mileage 132,000km

 

 

I'm thinking of renewing COE, because I need to top-up to get a new car.

 

But I'm also skeptical of the "hidden" costs of owning a 10(+)-year-old entry-level Japanese car, where things may start to fall apart.

 

 

Please advise.

 

I used to own a Jazz, expiring Jul 2015. Mileage on mine was only 90K after 8 years, and I would have renewed COE if not for family expanding.

 

Speaking from experience, it is a good car. You have to remember that entry-level Jap car brings "entry-level" operating cost. Jazz is fuel efficient and cheap to repair/maintain (I could even afford to service at Kah till the day I sold it!).

 

I never had gearbox problem, so I would suggest you get Kah's opinion on what's the problem. If they want to charge you high, then you can do the repair outside, but at least you know the problem first.

 

Buying a used car is a gamble, and if you buy a bigger car (most will be bigger than Jazz), then the cost of running it will be higher too.

[Enye]

  On 5/16/2014 at 8:43 AM, Baal said:

 

cvt w starter clutch more efficient than cvt w torque converter ?

 

Definitely

[Loki]

  On 5/16/2014 at 9:13 AM, LoneCatFish said:

 

You are right, I am comparing against FT86. Most importantly, I like the car very much, so very likely will PQP it. Time to start saving up that 60~70k cash.

Worth it to renew lah. You would've been paying about $10k depreciation for the current car? Even with PARF value and COE price now, when you renew, your annual depreciation definitely less than current situation right?

[Qpik]

  On 5/16/2014 at 8:32 AM, LoneCatFish said:

Even though my car still have two more years to go, I started to think about it too. As I own this car from new, I am sure of the condition.

 

Assuming COE 60k.

 

COE + scrap value + 10k put aside for next 10 yrs major repair is about 1/2 price of a new equivalent car now.

 

I guess it make sense for me to renew. Any suggestion?

 

 

 

not sure if u factor in power loss. or maybe it is just me. my previous ride was a Jap 1.6 AT. good work horse unfortunately power loss is rather apparent. if the vehicle is driven 90% in spore, I wld definitely kept it cos jap reliability is unbeatable.

[LoneCatFish]

  On 5/16/2014 at 1:22 PM, Qpik said:

 

not sure if u factor in power loss.

 

Are you referring to engine power deterioration over time? That should not happen significantly if the engine is maintained properly.

[Voodooman]

Gear box problem, higher FC as older technology, higher maintenance cost and road taxes? I would opt for a Japanese used car, just make sure you get it thoroughly checked before you sign on the dotted line. I don't think the depreciation is very much higher provided you don't get a relatively new used car, maybe 2k more per year? But if COE dropped to say 10k, maybe...

 

Jap cars are reliable but they are not really built to last 20 years, so there will be major repairs which you have yet to factor in. Fuel pump, aircon, alternator, GB, radiator fans, suspension and if very unlucky, an engine overhaul will wipe out all savings.

 

PQP cannot be financed or the banks are not really in this business, leaving you at the mercy of quasi loanshark finance companies. You need to factor in higher interest rate too.

Edited May 16, 2014 by Voodooman

[Qpik]

  On 5/16/2014 at 1:48 PM, LoneCatFish said:

 

Are you referring to engine power deterioration over time? That should not happen significantly if the engine is maintained properly.

 

 

Yes, as you put it despite the car going for regular servicing.

 

I caught an episode on Top Gear where they tested and confirm that power loss is true with a machine.

 

I did contemplate whether overhaul engine (engine wash) would help or not.

[Nzy]

Planning to renew my COE in 2016 as well as long as it doesn't go alot higher than 100k.