Survival tips in the CURRENT used car market

[Spring]

my fren and i bought both bought a car from this group, 8-10 years, and Group D... i bought a RX350 and him a GS300. we fixed the problems upfront with the dealer before we took over the car (own mechanic evaluated). we bought the cars between 11-13k depre. after that, no nagging issues, although i did change the radiator and him the a/c. even including this cost, it would still be much cheaper than a much newer car considering the COE is already 8k/year. and you are enjoying a premium ride.

 

the trick is to buy low mileage with genuine dealer servicing. my car was 65,000km when i bot. his was around 70k+ i think. and walk around to source the best deal. there are gems around, but need some luck.

 

Thks for the valuable feedback

 

I do agree that AD servicing and low mileage is the best way to go and you don't have to worry if the mileage has been tampered or not esp since it has AD record.

 

That said you and friend are lucky to get an 8-10yr old car with 65k/70k mileage which is almost unheard of. And yes a premium ride to enjoy as well. Goes to show there are gems out there if you willing to look hard. Patience I guess is a virtue here as well!!

[Prozac51]

Try taking a look at the historical new car prices for your target model and calculate the depreciation from new before thinking a 2nd hand deal is sweet. You may be paying more than what the original owners of the car did; not counting future repairs.

 

My formula is to calculate the depreciation of that car when new, slash off another 20% from that value to set my price ceiling during negotiations.

[Matrix0405]

Is there any update on survival tips for 2015? 2105 kicks off with Cat A $60K and Cat B $70K. A 2009 Cat A car with COE costing $10K is still using $60K COE to depreciate. If your car is reaching 10 yrs in the next 4 months, what would you do? Renew COE, buy a pre-loved or don drive for a while?

[Powxus]

Is there any update on survival tips for 2015? 2105 kicks off with Cat A $60K and Cat B $70K. A 2009 Cat A car with COE costing $10K is still using $60K COE to depreciate. If your car is reaching 10 yrs in the next 4 months, what would you do? Renew COE, buy a pre-loved or don drive for a while?

 

If your car is in good condition then renew the COE. 2nd hand cars are selling at the same depreciation as a brand new car so it's not worth it since there could be higher maintenance cost.

[Dafansu]

Is there any update on survival tips for 2015? 2105 kicks off with Cat A $60K and Cat B $70K. A 2009 Cat A car with COE costing $10K is still using $60K COE to depreciate. If your car is reaching 10 yrs in the next 4 months, what would you do? Renew COE, buy a pre-loved or don drive for a while?

Is your PARF high. If not just renew will be more worth

[Detach8]

my fren and i bought both bought a car from this group, 8-10 years, and Group D... i bought a RX350 and him a GS300. we fixed the problems upfront with the dealer before we took over the car (own mechanic evaluated). we bought the cars between 11-13k depre. after that, no nagging issues, although i did change the radiator and him the a/c. even including this cost, it would still be much cheaper than a much newer car considering the COE is already 8k/year. and you are enjoying a premium ride.

 

the trick is to buy low mileage with genuine dealer servicing. my car was 65,000km when i bot. his was around 70k+ i think. and walk around to source the best deal. there are gems around, but need some luck.

 

It's very simple math.

 

I just bought a Dec 05 Volvo XC90, $41K

 

If COE remains $73K and i renew in Dec 2015

 

$41K + $73K = $114K

 

I have 11 years to drive it. Divide 114K/11 years = 10.4K/yr.

 

But of course, road tax is high. Maintenance can be high too, depends on heng sway.

 

I pay around $13K a year incl. road tax for a 7-seater size continental SUV. Right now for this kind of price you can barely buy a Toyota Wish or Honda Stream. For a new car you can barely even smell a Subaru Forester.

 

Of course, all 100% cash payment. No loans.

 

For those who are cash rich... buy a Porsche Cayenne for around $60K, renew COE... total depre under $15K. For a Porsche!

Edited December 26, 2014 by Detach8

[Detach8]

Is your PARF high. If not just renew will be more worth

 

I think it's not whether the PARF is high or not high. It's whether the car has value after 10 years and justify forgoing the PARF. For cars like a Mercedes E class, even if PARF is 50K, may be still worth to renew as the car has a good useable life.

 

For some cars even if PARF is cheap like maybe a Nissan Latio, renew liao also not much value. Who wants to pay ($65K + $8K) $73K for a 10 year old Latio as compared to maybe a E class ($74K + $28K) $102K.

 

 

Edited December 26, 2014 by Detach8

[Detach8]

 

Is there any update on survival tips for 2015? 2105 kicks off with Cat A $60K and Cat B $70K. A 2009 Cat A car with COE costing $10K is still using $60K COE to depreciate. If your car is reaching 10 yrs in the next 4 months, what would you do? Renew COE, buy a pre-loved or don drive for a while?

 

 

If your car is in good condition then renew the COE. 2nd hand cars are selling at the same depreciation as a brand new car so it's not worth it since there could be higher maintenance cost.

 

My advise is this... if you really like your current car and it has been trouble free, then go ahead and renew it.

 

Otherwise what you can do is buy a BETTER car left few months to 1 year, then renew it. I have a pretty bullet proof Volvo V50 to let go. Let me know if you are interested.

Edited December 26, 2014 by Detach8

[Dafansu]

 

I think it's not whether the PARF is high or not high. It's whether the car has value after 10 years and justify forgoing the PARF. For cars like a Mercedes E class, even if PARF is 50K, may be still worth to renew as the car has a good useable life.

 

For some cars even if PARF is cheap like maybe a Nissan Latio, renew liao also not much value. Who wants to pay ($65K + $8K) $73K for a 10 year old Latio as compared to maybe a E class ($74K + $28K) $102K.

 

 

Low parf like latio, renew COE for 5 years and forgo about 8 to 10k. When COE drops, just scrap and use the refunded COE for new car, no need to bother about the value. There will be lots of COE going to expiry within the next 3 years. Almost 50% of car population in Singapore. Coe likely to moderate lower maybe at range of 30 to 40k in the next few years.

[Powxus]

Low parf like latio, renew COE for 5 years and forgo about 8 to 10k. When COE drops, just scrap and use the refunded COE for new car, no need to bother about the value. There will be lots of COE going to expiry within the next 3 years. Almost 50% of car population in Singapore. Coe likely to moderate lower maybe at range of 30 to 40k in the next few years.

 

COE must drop more than $10k to compensate for the loss of scrap value when you scrap a COE car for a new car. Once you renew COE it's best to drive it longer to minimise the depreciation. Also you must budget extra cash for repairs since many parts may need to be replaced for a car more than 10 years.

 

[Vhtfhwlego]

I bought a Alfa GT for $6200.

Changed timing belt & tyre & servicing.

Will sum up total depreciation and maintenance cost in 15 months time.

I'm sure that the GT will cost me max $9k per year.

 

 

Much much better then the average bb cars.

[Dafansu]

 

COE must drop more than $10k to compensate for the loss of scrap value when you scrap a COE car for a new car. Once you renew COE it's best to drive it longer to minimise the depreciation. Also you must budget extra cash for repairs since many parts may need to be replaced for a car more than 10 years.

 

Yes more than 10k. Looking at the number of cars with expiring COE in the next few years. This is highly possible. I just renewed my vios. Change some parts for $800. Belt, pulley, suspension mounting etc. These are basic things that need to change. At any time the cost will be much lower than buying new car or second hand. Edited December 26, 2014 by Dafansu

[Alheych]

My personal opinion, these are transactable prices

 

Group A - B&B cars: Vios, Lancer, City, March, Mazda 2, K3, etc.

Group B - Mid-range B&B or entry level conti: Civic, Altis, Jetta, Golf, K5, Mazda 3, etc.

Group C - Luxury sedan: Camry, Passat, Mazda 6, C class, BMW 3 series, etc.

Group D - Large branded sedan: E class, BMW 5 series, etc.

 

3-4 years old

A - under 9k/yr depre

B - under 11k/yr depre

C - under 15k/yr depre

D - under 19k/yr depre

 

5-7 years old

 

A - under 7k/yr depre

B - under 9k/yr depre

C - under 13k/yr depre

D - under 17k/yr depre

8-10 years old

 

A - under 6k/yr depre

B - under 8k/yr depre

C - under 11k/yr depre

D - under 15k/yr depre

 

i find this guide to be fairly reflective of the current market.

 

conducting a search on a 2007 vios, altis and camry, i realised their depreciation is all around the same, because vios and altis OMV significantly lower. so does that make camry the best bet (discounting maintenance, road tax and petrol of course)?

[Detach8]

Yes more than 10k. Looking at the number of cars with expiring COE in the next few years. This is highly possible. I just renewed my vios. Change some parts for $800. Belt, pulley, suspension mounting etc. These are basic things that need to change. At any time the cost will be much lower than buying new car or second hand.

 

You all never consider that LTA is not stupid and that the vehicle growth may be scaled back, possibly to -ve.

 

Watch this space. Limpeh predict policies quite zhun one.

 

i find this guide to be fairly reflective of the current market.

 

conducting a search on a 2007 vios, altis and camry, i realised their depreciation is all around the same, because vios and altis OMV significantly lower. so does that make camry the best bet (discounting maintenance, road tax and petrol of course)?

 

yeap quite no brainer. that's why i say those with intent to renew and are currently driving lower end cars, sell it... change from an altis to even a camry also shiok.

Low parf like latio, renew COE for 5 years and forgo about 8 to 10k. When COE drops, just scrap and use the refunded COE for new car, no need to bother about the value. There will be lots of COE going to expiry within the next 3 years. Almost 50% of car population in Singapore. Coe likely to moderate lower maybe at range of 30 to 40k in the next few years.

Why waste the PARF rebate and renew 5 years. Do 10 years, anyway if you decide to scrap can get balance back. What if COE didn't really drop? Squeeze balls?

[Hosaybo]

Think many renew 5 years because it will be lower cash upfront.....think easier to pull 30k out of pocket than 60k.COE loan thingy are actually opportunist waitingcto chop carrot head that has no cash cis the interest is high.

[Dafansu]

 

You all never consider that LTA is not stupid and that the vehicle growth may be scaled back, possibly to -ve.

 

Watch this space. Limpeh predict policies quite zhun one.

 

 

yeap quite no brainer. that's why i say those with intent to renew and are currently driving lower end cars, sell it... change from an altis to even a camry also shiok.

 

Why waste the PARF rebate and renew 5 years. Do 10 years, anyway if you decide to scrap can get balance back. What if COE didn't really drop? Squeeze balls?

My PARF is only 7k. In fact it's not much for my bread and butter car. If COE drop more than 7k and I scrap my vehicle and take back the balance COE, there isn't much lost.

 

Reason for 5 years is simple. I do not want to take loan. Paid in full. Next 5 years is good enough to save for the next car even if COE remains high. Able to make full payment if need be.

 

Second, check the statistics for the number of cars being scrap for next 3years. Likely the lowest point of COE for this generation will be within the next 3years. If it doesn't go down, it will always remain at this amount or even higher and you will also squeeze balls even if you renew for 10 years.

 

Third with no loan I'm less likely to be affected by TDRS when buying property for investment.

Edited December 27, 2014 by Dafansu

[Baal]

I noted a trend since 1/2 a year back. The those 04 Altis. many seem to have touched up/polished up painjobs and upgraded to 195/60-15 tyre/rim sizes. I suspect these are the renewed type.

[Dafansu]

Think many renew 5 years because it will be lower cash upfront.....think easier to pull 30k out of pocket than 60k.COE loan thingy are actually opportunist waitingcto chop carrot head that has no cash cis the interest is high.

Some prefer to have no loans thus will make full payment. Renewal of Coe can also take loan but interest is rather high. Some with tight finances and still desire to own a car might go for balloon scheme. Went to a PI not long ago and the monthly is only $700 plus for a new car which is affordable to these buyers.