Renew COE or Buy pre-owned?

[Kangadrool]

Forget to sate reason:

 

If keep Sonata more than 10 years, spare parts hard to come by as not many are extending it beyond 10 years. Whereas, there are plenty for 3-pointed star.

[Roh96]

Cat B car, I would say forget it. Scrap it, take the parf n top up a bit to get pre owned. If ur concern is getting a problematic 2nd hand car, why not ask around your friends, relatives, colleagues n buy from someone u know.

[Audioniche]

  On 2/1/2012 at 5:14 PM, Wintersonata said:

Long term rental doesn't seems economical, the monthly rates of the rental should be equal to a >5 yrs old second-hand car.

It can be a short-term measure if COE is expected to drop really soon.

 

It will be a short term solution until the Coe is lower. I think I am benefitting from it. Can get to change car every year and do not need to bear the cost for maintenance or Tyres. No need to bother about insurance and road tax. The only downside is not able to mod car...but also save money. Do not need to worry about high Coe or low Coe cos the commitment can be from a few months to a year or more. U set your own commitment.

[Mllcg]

  On 2/2/2012 at 5:37 PM, Audioniche said:

It will be a short term solution until the Coe is lower. I think I am benefitting from it. Can get to change car every year and do not need to bear the cost for maintenance or Tyres. No need to bother about insurance and road tax. The only downside is not able to mod car...but also save money. Do not need to worry about high Coe or low Coe cos the commitment can be from a few months to a year or more. U set your own commitment.

 

1.2k/mth for short term.

 

more than 6 mths rent its 900/mth.

 

wouldnt it be wiser to pay that amount to own the car?

[Mkl22]

  On 2/2/2012 at 3:07 PM, Wintersonata said:

PARF rebate at ~$13k. Based on latest calculation, about $9.2k per annual for COE renewal.

So basically any pre-owned car that depreciate less than that will be worth while to buy.

 

40k KM is very low mileage. No plans to get new ones.

Only 3 options, renewal COE, pre-owned or BMW.

 

 

whats the mileage of the car now? and what parts have you replaced already? cause if mileage is high, chances are a overhaul of engine and transmission will be due for it to last another 5 years.

 

I would probably scrap it since its a CATB like the other forum-er said. i do not think its too difficult to find another car lower than 9k depreciation. try looking for 2007/2008 reg cars. should be a decent deal.

 

 

[Roh96]

TS, i think the choice is obvious after you work out the sums. Continue to pay 9K/yr for COE car really doesn't make sense.

[Lattesurf]

  On 2/1/2012 at 5:04 PM, Wintersonata said:

10 year COE based on current price is too much cash up-front.

Can't really take a car loan just for COE. Have to take more expensive personal loan.

Really not much difference whether it's 5 or 10 years.

Depreciation per year is the same, but the risk is that COE only drop from after the 5th year onwards.

 

There's a huge difference between PQP renewal for 5 or 10 year COE.

 

Renew PQP for 10 years, allows the car to be renewed at the next cycle (ie year 21-30).

Annual depreciation = ($13k+$66k)/10 = $7.9k.

 

Renew PQP for 5 years, mandatory you must scrap your car at the end of the 5th year (ie year 15), no more renewal allowed.

Annual depreciation = ($13k+$33k)/5 = $9.2k.

 

Although you pay 50% of the PQP for 5 year renewal, but if you decide to sell anytime after renewal, the one with the 10 year renewal will result in lower depreciation than the 5 year renewal (ie fetches a better price). Cos people would much rather pay for something that has value for longer term, than a car that has $0 value after 5 years, and die die must scrap without any renewal option.

[Audioniche]

  On 2/2/2012 at 5:50 PM, Mllcg said:

1.2k/mth for short term.

 

more than 6 mths rent its 900/mth.

 

wouldnt it be wiser to pay that amount to own the car?

 

U seems to forget the maintenance, insurance and road tax.

 

U dun really own the car unless u paid it up and the commitment is usually 7-10 years for most people.

 

1300/mth can get u a Polo.

Edited February 3, 2012 by Audioniche

[Wintersonata]

  On 2/3/2012 at 6:39 AM, Lattesurf said:

There's a huge difference between PQP renewal for 5 or 10 year COE.

 

Renew PQP for 10 years, allows the car to be renewed at the next cycle (ie year 21-30).

Annual depreciation = ($13k+$66k)/10 = $7.9k.

 

Renew PQP for 5 years, mandatory you must scrap your car at the end of the 5th year (ie year 15), no more renewal allowed.

Annual depreciation = ($13k+$33k)/5 = $9.2k.

 

Although you pay 50% of the PQP for 5 year renewal, but if you decide to sell anytime after renewal, the one with the 10 year renewal will result in lower depreciation than the 5 year renewal (ie fetches a better price). Cos people would much rather pay for something that has value for longer term, than a car that has $0 value after 5 years, and die die must scrap without any renewal option.

 

I doubt it's possible to auto-loan $66k for the COE right?

Unless you have full cash or go for high personal loan, which will incur higher interests payment which need to be factor in as well.

[Wintersonata]

  On 2/3/2012 at 6:17 AM, Mkl22 said:

whats the mileage of the car now? and what parts have you replaced already? cause if mileage is high, chances are a overhaul of engine and transmission will be due for it to last another 5 years.

 

I would probably scrap it since its a CATB like the other forum-er said. i do not think its too difficult to find another car lower than 9k depreciation. try looking for 2007/2008 reg cars. should be a decent deal.

 

About 160k KM now. Quite low mileage from my point of view, even with daily usage.

Some of the major ones are radiator, some sensors, front drive axle, etc.

So far, happy with the reliability hence the dilemma of keeping or scrapping.

 

[Tigerwoods]

I think TS situation is that his car impending death is earlier than the expect increase in COEs in year 2014.

So I suggest that he scrap the car and cash out, use the cash to rent a car and wait for the Coe to drop and then go but new car.

Why rent?

If the cost if renting is about same as the monthly depreciation it will be the best.

If you pay for 5 year COE to existing car and when the time comes with COE going downwards you may end up selling you cat at a lower price.UT

 

For me I will rent as the cost is fixed and I'm keeping cash and paying monthly.

Edited February 4, 2012 by Tigerwoods

[Wintersonata]

  On 2/3/2012 at 3:57 PM, Audioniche said:

U seems to forget the maintenance, insurance and road tax.

 

U dun really own the car unless u paid it up and the commitment is usually 7-10 years for most people.

 

1300/mth can get u a Polo.

 

Toyota Vios is about $1400 per mth.

Mitsubishi Lancer about $1400 per mth.

Hyundai Avante about $1500 per mth.

Toyota Wish about $1800 per mth.

Toyota Camry 2.4L Auto about $2000 per mth.

 

Above prices are inclusive of Insurance and all Taxes.

All vehicles are insured under Third Party Insurance.

So should exclude maintenance and admin fees.

Edited February 4, 2012 by Wintersonata

[Spidey10]

  On 2/4/2012 at 7:02 AM, Wintersonata said:

Toyota Vios is about $1400 per mth.

Mitsubishi Lancer about $1400 per mth.

Hyundai Avante about $1500 per mth.

Toyota Wish about $1800 per mth.

Toyota Camry 2.4L Auto about $2000 per mth.

 

Above prices are inclusive of Insurance and all Taxes.

All vehicles are insured under Third Party Insurance.

So should exclude maintenance and admin fees.

 

Bros, is it advisable to sell car now and rent/get a 2nd car and drive the nxt few yrs until Coe comes down...

I bought my ride in 2010.. Sell now dun lose a lot? Is this a good strategy??

Appreciate any comments...and sorry to deviate fr the tread here...

[Odessus]

  On 2/4/2012 at 10:23 AM, Spidey10 said:

Bros, is it advisable to sell car now and rent/get a 2nd car and drive the nxt few yrs until Coe comes down...

I bought my ride in 2010.. Sell now dun lose a lot? Is this a good strategy??

Appreciate any comments...and sorry to deviate fr the tread here...

Why do you contemplate selling your car now when it is hardly 2 years old? The prices today are higher than 2010 due to COE increase so second hand car prices or rental rates will correspondingly increase as well. Don't understand your rationale to begin with.

[Zyrofillica]

Renew COE cannot take car loan?

 

Anyone know any lobang like say i "sell" to my family member and he takes a loan on my behalf to "buy" the car and renew COE. But effectively car will remain in my hands with renewed COE financed by low interest rate?

[Spidey10]

  On 2/4/2012 at 10:29 AM, Odessus said:

Why do you contemplate selling your car now when it is hardly 2 years old? The prices today are higher than 2010 due to COE increase so second hand car prices or rental rates will correspondingly increase as well. Don't understand your rationale to begin with.

 

I am thinking about the losses say 3-4 yrs time, when I want to sell my ride, I will lose a lot, if Coe comes down hard.(I think)

If I change now, no losses, take some money back, get a 2nd hand/rent, hopefully lower instalment and wait it out...

Was thinking 2006 model!

Is this a good strategy coz I think, I can get back some $$ if sell now and keep some of the $$ for later downpayment,

 

 

[Audioniche]

  On 2/4/2012 at 7:02 AM, Wintersonata said:

Toyota Vios is about $1400 per mth.

Mitsubishi Lancer about $1400 per mth.

Hyundai Avante about $1500 per mth.

Toyota Wish about $1800 per mth.

Toyota Camry 2.4L Auto about $2000 per mth.

 

Above prices are inclusive of Insurance and all Taxes.

All vehicles are insured under Third Party Insurance.

So should exclude maintenance and admin fees.

 

Hi

 

I got it for with maintenance and no mileage restriction. I still have the person to pick up the rental car and provide me a replacement car while waiting for it to be serviced. Admin fees? I only paid a 2 months rental as deposit.

 

By the way, how come the quote u got is so high? Scary bro...

[Audioniche]

  On 2/4/2012 at 10:23 AM, Spidey10 said:

Bros, is it advisable to sell car now and rent/get a 2nd car and drive the nxt few yrs until Coe comes down...

I bought my ride in 2010.. Sell now dun lose a lot? Is this a good strategy??

Appreciate any comments...and sorry to deviate fr the tread here...

 

I sold mine and get s bit of money back. Use the earnings to rent and pray for COE to go down. The good is I rented a conti and I need not worry about the maintenance. Please do yr maths and u will know what I mean.