Maroon5 5th Gear May 27, 2015 Share May 27, 2015 When I ran a search for Vezel in the used market, most of them had ARF = OMV, meaning no CEVS rebate yeah? Unless the used car dealers screwed up? thk the rebate is 10k.....no big issue but since we talking depn, this would have some adverse effect ↡ Advertisement Link to post Share on other sites More sharing options...
Piyopico Supercharged May 27, 2015 Share May 27, 2015 Ok, one complete calculation for comparison. Scenario: You have a Toyota Rush now, wondering if you should do COE renewal or buy a brand new Honda Vezel. Let's say this is the Rush you have now, COE expiring July 2016: http://www.sgcarmart.com/used_cars/info.php?ID=472775&DL=2140 You thinking of buying this Vezel: http://www.sgcarmart.com/used_cars/info.php?ID=457287&DL=1264 -------------------------------------------------------------------------- Renew 10 years COE for your Toyota Rush PQP (Cat A, May 2015): $63,444 PARF: $10,031 Cash Paid: $63,444 Actual Cost of Renewal: 63,444 + 10,031 = $73,475 (due to PARF forfeited) Depreciation: $7347.50/year -------------------------------------------------------------------------- Buy a brand new Vezel Price: $116,800 PARF: $9,232 Toyota Rush PARF: $10,031 Downpayment (40%): $46,720 Loan Amount (60%): $70,080 Monthly Instalment (for 60 months): $1,332/month Total Amount for Loan (Interest Rate 2.8%): $79,891 Total Cash Paid after 5 years: 46,720 + 79,891 = $126,611 Downpayment Paid in Cash: 46,720 - 10,031 = $36,689 Depreciation: (126,611 - 9,232) / 10 = $11,737.90/year -------------------------------------------------------------------------- 10 year renewal required upfront cash of 63k, while buying a new car only requires 36k. That's 27k lesser. You really need to be cash rich to afford a 10 year COE renewal, especially since there is no loan available. Also, a 5 year COE renewal will only cost 63,444 / 2 = $31,722 which is lesser than the downpayment for the new car. Those who foresee no need for a car in 5 years or no money to pay instalments will find 5 year renewal attractive. Above is assuming 10 years. If we count backside itchy and change car after 3 years: Toyota Rush COE refund: 63,444 / 10 x 7 = $44,410.80 Effective Depreciation: (73,475 - 44,410.80) / 3 = $9,688 If you're gonna have itchy backside, better to get a new car instead as the depreciation difference is only 2k/year. Else, renewal is attractive for the 4.4k/year savings. You cannot underestimate the much improved FC of some newer rides. The savings can be close to $200 a month. The gap narrows significantly to less than $2000 between new and renewing for 10 years. By the time you factored in higher road tax, wear and tear plus the usual 3 years service package for a new ride, difference definitely less than 2K. As for renewing for 5 years....... For selfish reasons, I hope more people do so cos they will contribute to the COE pool in 2020. 😁 Link to post Share on other sites More sharing options...
Roh96 6th Gear May 27, 2015 Share May 27, 2015 In this case (Rush vs Vezel), the reason to renew COE doesn't seem to be a strong one from depre point of view. However, if we look at bigger cars like camry or accord where new car is selling at $160K but the cost of renewing (parf + PQP) is $80K plus, the saving is substantial compared to buying new. Make sense? Ok, one complete calculation for comparison. Scenario: You have a Toyota Rush now, wondering if you should do COE renewal or buy a brand new Honda Vezel. Let's say this is the Rush you have now, COE expiring July 2016: http://www.sgcarmart.com/used_cars/info.php?ID=472775&DL=2140 You thinking of buying this Vezel: http://www.sgcarmart.com/used_cars/info.php?ID=457287&DL=1264 -------------------------------------------------------------------------- Renew 10 years COE for your Toyota Rush PQP (Cat A, May 2015): $63,444 PARF: $10,031 Cash Paid: $63,444 Actual Cost of Renewal: 63,444 + 10,031 = $73,475 (due to PARF forfeited) Depreciation: $7347.50/year -------------------------------------------------------------------------- Buy a brand new Vezel Price: $116,800 PARF: $9,232 Toyota Rush PARF: $10,031 Downpayment (40%): $46,720 Loan Amount (60%): $70,080 Monthly Instalment (for 60 months): $1,332/month Total Amount for Loan (Interest Rate 2.8%): $79,891 Total Cash Paid after 5 years: 46,720 + 79,891 = $126,611 Downpayment Paid in Cash: 46,720 - 10,031 = $36,689 Depreciation: (126,611 - 9,232) / 10 = $11,737.90/year -------------------------------------------------------------------------- 10 year renewal required upfront cash of 63k, while buying a new car only requires 36k. That's 27k lesser. You really need to be cash rich to afford a 10 year COE renewal, especially since there is no loan available. Also, a 5 year COE renewal will only cost 63,444 / 2 = $31,722 which is lesser than the downpayment for the new car. Those who foresee no need for a car in 5 years or no money to pay instalments will find 5 year renewal attractive. Above is assuming 10 years. If we count backside itchy and change car after 3 years: Toyota Rush COE refund: 63,444 / 10 x 7 = $44,410.80 Effective Depreciation: (73,475 - 44,410.80) / 3 = $9,688 If you're gonna have itchy backside, better to get a new car instead as the depreciation difference is only 2k/year. Else, renewal is attractive for the 4.4k/year savings. Link to post Share on other sites More sharing options...
Mrmilktooth Supercharged May 27, 2015 Share May 27, 2015 A lotof cat a cars have fc of 17-20km per litre!!! That is going to save your $ spent on refueling... By aa lot.. UUltimatelyiit'sthe initial downpayment that puts off some of the potential buyers... Link to post Share on other sites More sharing options...
BobbyTan_74287 4th Gear May 27, 2015 Share May 27, 2015 In this case (Rush vs Vezel), the reason to renew COE doesn't seem to be a strong one from depre point of view. However, if we look at bigger cars like camry or accord where new car is selling at $160K but the cost of renewing (parf + PQP) is $80K plus, the saving is substantial compared to buying new. Make sense? Agreed. Before decide to renew, look at the relative cost of the PQP paid against the similar new car. Also need to consider the condition of your COE car. Lastly whether the needs to drive versus public transport. Link to post Share on other sites More sharing options...
Metalslug2 3rd Gear May 27, 2015 Share May 27, 2015 brand new car is easily 1.2k/mth for next 5 years renewing coe for 5 yrs is probably zero/mth for folks who can pay in full one can only use simple depr when one can pay in full. ie. 120k vs 31k. if someone purchased on loan, rule of 78 will ensure a much higher depr if disposed of in the early years. thats why for now i am leaning more towards renewal of coe :) 2 Link to post Share on other sites More sharing options...
Sunset73 5th Gear May 27, 2015 Share May 27, 2015 brand new car is easily 1.2k/mth for next 5 years renewing coe for 5 yrs is probably zero/mth for folks who can pay in full one can only use simple depr when one can pay in full. ie. 120k vs 31k. if someone purchased on loan, rule of 78 will ensure a much higher depr if disposed of in the early years. thats why for now i am leaning more towards renewal of coe :) Same here. Can only renew COE. Buying a used 2nd hand car is too dangerous. 50-50 chance of getting a lemon. End up more headaches. No money to buy a new one. 1 Link to post Share on other sites More sharing options...
Johnnylim 5th Gear May 27, 2015 Share May 27, 2015 Should I Renew my COE When it Expires? Yes you should. If you drive your car after COE has expired you will be fined. I always give the best advice Teacher Jamesc, u so bad, catch ppl England mistake 2 Link to post Share on other sites More sharing options...
13177 Hypersonic May 27, 2015 Share May 27, 2015 Sunset73, on 27 May 2015 - 11:29 AM, said: Same here. Can only renew COE. Buying a used 2nd hand car is too dangerous. 50-50 chance of getting a lemon. End up more headaches. No money to buy a new one. Provided your car can make it for the next 5-10 years. Link to post Share on other sites More sharing options...
Mrmilktooth Supercharged May 27, 2015 Share May 27, 2015 better choice is dont renew. take mrt better. the free exit before 7.45am on for another year. can save alot $$.. 1 Link to post Share on other sites More sharing options...
Sunset73 5th Gear May 27, 2015 Share May 27, 2015 Provided your car can make it for the next 5-10 years. Should be no issue. Toyota Vios Manual 2006. Other than lousy noisy insulation, still quite manageable. better choice is dont renew. take mrt better. the free exit before 7.45am on for another year. can save alot $$.. Depends on situation. I work in Jurong Island. No matter how early I wake, also cannot enjoy free MRT ride Need the car to send my fiancée to go for swimming lessons on Saturday and Sunday early morning. Need to run a couple of places in a day too. Not practical to take cab. Link to post Share on other sites More sharing options...
Dafansu Turbocharged May 27, 2015 Share May 27, 2015 Should be no issue. Toyota Vios Manual 2006. Other than lousy noisy insulation, still quite manageable. Depends on situation. I work in Jurong Island. No matter how early I wake, also cannot enjoy free MRT ride Need the car to send my fiancée to go for swimming lessons on Saturday and Sunday early morning. Need to run a couple of places in a day too. Not practical to take cab. Renewed my Vios for 5 years. Sent for some replacement of parts. Pulley,belting and suspension holder total about $800+. Mileage about 150k only. Renewal for me is simple, does not want to tie down with loan and foresee COE will drop to 40 to 50k within the next 3 years. If projection is correct will scrap early, take back balance Coe and buy new. Can save from here also. 1 Link to post Share on other sites More sharing options...
flashbang Turbocharged May 27, 2015 Share May 27, 2015 In this case (Rush vs Vezel), the reason to renew COE doesn't seem to be a strong one from depre point of view. However, if we look at bigger cars like camry or accord where new car is selling at $160K but the cost of renewing (parf + PQP) is $80K plus, the saving is substantial compared to buying new. Make sense? Ok, quick one to compare COE renewal of 2005 Toyota Camry 2.4A vs buying a new Toyota Camry 2.5A. Renew 10 years COE for your Toyota Camry PQP (Cat A, May 2015): $63,444 PARF: $15,885 Cash Paid: $63,444 Actual Cost of Renewal: 63,444 + 15,885 = $79,329 (due to PARF forfeited) Depreciation: $7932.90/year -------------------------------------------------------------------------- Buy a brand new Toyota Camry Price: $164,888 PARF: $15,740 Old Camry PARF: $15,885 Downpayment (50%): $82,444 Loan Amount (50%): $82,444 Monthly Instalment (for 60 months): $1,566/month Total Amount for Loan (Interest Rate 2.8%): $93,986 Total Cash Paid after 5 years: 82,444 + 93,986 = $176,430 Downpayment Paid in Cash: 82,444 - 15,740 = $66,704 Depreciation: (176,430 - 15,885) / 10 = $16,054.50/year -------------------------------------------------------------------------- Now we're talking a difference of 9k/year depreciation, which could almost get you a second B&B car that costs around 100k. 66k required for downpayment for a brand new Camry, which is equal to the cost of COE renewal for 10 years. COE renewal is very attractive now if your car is in good condition. Link to post Share on other sites More sharing options...
Jamesc Hypersonic May 27, 2015 Share May 27, 2015 Teacher Jamesc, u so bad, catch ppl England mistake Haha this one not English, this one law. I like to give people illegal advice. Link to post Share on other sites More sharing options...
Enye Hypersonic May 27, 2015 Share May 27, 2015 Nowadays car loan interest rate went up to 2.8% already?? 😅 Link to post Share on other sites More sharing options...
evidence 2nd Gear May 27, 2015 Share May 27, 2015 (edited) [ Renew Camry is not COE cat A, its supposed to be Cat B Pqp price quote name=flashbang" post="5498010" timestamp="1432726537] Renew Camry is not COE cat A, its supposed to be Cat B Pqp price..... Ok, quick one to compare COE renewal of 2005 Toyota Camry 2.4A vs buying a new Toyota Camry 2.5A. Renew 10 years COE for your Toyota Camry PQP (Cat A, May 2015): $63,444 PARF: $15,885 Cash Paid: $63,444 Actual Cost of Renewal: 63,444 + 15,885 = $79,329 (due to PARF forfeited) Depreciation: $7932.90/year -------------------------------------------------------------------------- Buy a brand new Toyota Camry Price: $164,888 PARF: $15,740 Old Camry PARF: $15,885 Downpayment (50%): $82,444 Loan Amount (50%): $82,444 Monthly Instalment (for 60 months): $1,566/month Total Amount for Loan (Interest Rate 2.8%): $93,986 Total Cash Paid after 5 years: 82,444 + 93,986 = $176,430 Downpayment Paid in Cash: 82,444 - 15,740 = $66,704 Depreciation: (176,430 - 15,885) / 10 = $16,054.50/year -------------------------------------------------------------------------- Now we're talking a difference of 9k/year depreciation, which could almost get you a second B&B car that costs around 100k. 66k required for downpayment for a brand new Camry, which is equal to the cost of COE renewal for 10 years. COE renewal is very attractive now if your car is in good condition. Edited May 27, 2015 by EvidenceProtocol 1 Link to post Share on other sites More sharing options...
flashbang Turbocharged May 27, 2015 Share May 27, 2015 Ok, quick one to compare COE renewal of 2005 Toyota Camry 2.4A vs buying a new Toyota Camry 2.5A. Renew 10 years COE for your Toyota Camry PQP (Cat B, May 2015): $72,136 PARF: $15,885 Cash Paid: $72,136 Actual Cost of Renewal: 72,136 + 15,885 = $88,021 (due to PARF forfeited) Depreciation: $8802.10/year -------------------------------------------------------------------------- Buy a brand new Toyota Camry Price: $164,888 PARF: $15,740 Old Camry PARF: $15,885 Downpayment (50%): $82,444 Loan Amount (50%): $82,444 Monthly Instalment (for 60 months): $1,566/month Total Amount for Loan (Interest Rate 2.8%): $93,986 Total Cash Paid after 5 years: 82,444 + 93,986 = $176,430 Downpayment Paid in Cash: 82,444 - 15,740 = $66,704 Depreciation: (176,430 - 15,885) / 10 = $16,054.50/year -------------------------------------------------------------------------- Now we're talking a difference of 9k/year depreciation, which could almost get you a second B&B car that costs around 100k. 66k required for downpayment for a brand new Camry, which is equal to the cost of COE renewal for 10 years. COE renewal is very attractive now if your car is in good condition. Oops, updated to Cat B pricing. 8.8k vs 16k, still a huge difference. 10k more cash needed for COE renewal. Link to post Share on other sites More sharing options...
Mkl22 Supersonic May 27, 2015 Share May 27, 2015 Oops, updated to Cat B pricing. 8.8k vs 16k, still a huge difference. 10k more cash needed for COE renewal. Should calculate both without loans. It will then be 8.8k vs approx 13.4k. 164-15-15=134k. Then you have to add the difference in road tax as this you must pay. This should narrow to approx 9.4 vs 13.4k. A 4k a year diff assuming you drive both for a full 10 years. This 4k will then need to cover the expected higher wear on the Coe car. You then have to figure out how much ore your have to pay. The 40k savings over 10 years could easily dwindle to 30k or less. Renewing will always be cheaper. It up to the individual to think if that extra money saved could have been spent to make you happier in a new car or spent elsewhere. I didn't renew mine as I could not foresee myself lasting another 10 years in the same car. ↡ Advertisement 3 Link to post Share on other sites More sharing options...
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