COE down, those bought at high COE how?

[Axela72]

that is why need to do the homework 1st. If after calculation is break even or better (with saving), then replace with a new car (with longer reliability, latest equipment etc)

 

but if sell off the car which bought at high coe, the dealers also wont willing to pay back much ... so end up also lose money if sell off to get a lower coe...might as well just live with it..drive n enjoy ride..no need think too much.

 

[Axela72]

I really hope that the COE can be normalized. Then every few years once warranty is over, we can just change a new car.

 

Just like in older days time, we less frequent see car that is more than 5 yrs old. less break down and city look more beautiful with new car than old car around

Edited February 12, 2016 by Axela72

[Kar_lover]

but if sell off the car which bought at high coe, the dealers also wont willing to pay back much ... so end up also lose money if sell off to get a lower coe...might as well just live with it..drive n enjoy ride..no need think too much.

 

If you bought your car during the $90K COE you are losing $9k every year just on COE alone. So even if dealer take in your car low, you can still at least minimise your losses and change to a new car which has much lower COE. For eg. if you get a $90k BB car now, your TOTAL depreciation is less than $9k per year. Whereas if you drive your high COE car to the end you would have suffered the full extent of the $90k COE. Once you bought your car at high COE, you will of course lose money - the question is whether you are going to do something to cut your losses.

[Limwsv]

I really hope that the COE can be normalized. Then every few years once warranty is over, we can just change a new car.

 

Just like in older days time, we less frequent see car that is more than 5 yrs old. less break down and city look more beautiful with new car than old car around

 

This is a very odd comment.  Before the implementation of the COE system, Singapore roads were full of old cars... very few buy new cars. Cars continue to be maintained and driven even when they are 30 years old.  If you don't believe, just look across the causeway. 

[Axela72]

I meant ~7 to 10 yrs ago, your scenario is like more than 25 yrs ago which many of us here haven't start driving yet

 

This is a very odd comment.  Before the implementation of the COE system, Singapore roads were full of old cars... very few buy new cars. Cars continue to be maintained and driven even when they are 30 years old.  If you don't believe, just look across the causeway. 

 

[Limwsv]

I meant ~7 to 10 yrs ago, your scenario is like more than 25 yrs ago which many of us here haven't start driving yet

 

Your older days reference confused me...     Better to use, "back in the early 2000s", no?  

[Limwsv]

Your older days reference confused me...     Better to use, "back in the early 2000s", no?  

 

Actually thinking about, the period you are using as a reference for "normalize" is actually an abnormal period.  Those are the years when LTA keep expanding the supply of COEs and everyone who wants to buy a new car could, with a 100% loan.

 

Don't think those days will be back, unless we get more support to liberalize COE supply but control congestion via NexGen ERP.

 

A better comparison would be the period in the late 80s to late 90s when COE supply grew slowly.  Even then, if I recall correctly, at least from my view, lots of 2nd hand cars on the road.  The only period that I remember having monthly new car plate numbers was back in the early 80s' just before the big recession. 

Edited February 12, 2016 by Limwsv

[Penknife]

Will there also be higher body value since car is pretty new? Doesn't make any sense that a new car be scrapped..

could be.

 

paper value 60k means minimum will get back 60k. anything extra treat as bonus. 

Will happen, maybe new Kia Rio can go below 60k.

 

So you ok to downgrade?

heh.

 

nope.    at least same model or newer model. 

[Axela72]

what I meant from normalize is gather all the COE value from the 1st date result till now and find the median mode. Or they can use 10 years COE result fpr study etc. After that, factor in the safety factor range to determine the quota

 

Actually thinking about, the period you are using as a reference for "normalize" is actually an abnormal period.  Those are the years when LTA keep expanding the supply of COEs and everyone who wants to buy a new car could, with a 100% loan.

 

Don't think those days will be back, unless we get more support to liberalize COE supply but control congestion via NexGen ERP.

 

A better comparison would be the period in the late 80s to late 90s when COE supply grew slowly.  Even then, if I recall correctly, at least from my view, lots of 2nd hand cars on the road.  The only period that I remember having monthly new car plate numbers was back in the early 80s' just before the big recession. 

 

Edited February 12, 2016 by Axela72

[Wondertree]

It's either a median or a mode. No such term as 'median mode'.

[Solar]

Imo it applies more for cars with renewed coe.

No loan rule 78, no dealer margin, purely the parf+coe.

 

For newer cars, u add those two is enough to make no sense to scrap, unless the difference is really that huge.

[Jwee85]

Be careful......when you sell you car....you must calculate the original bought price minus the selling price divided over the few years of ownership to get the actual depreciation!

It might end up to be 21k if you dare to do the sums.

 

So you might have lost 'extra' depreciation that was conveniently ignored...and thinking your new car with a lower $10kdepreciation(over 10years) is a smart choice vs the $13k depreciation(if you hold it for full ten years).

 

The additional $8k + $8k + $8k ($21k - $13k) depreciation, assuming your old car is only three years old, is actually $24k worth of depreciations that you MUST add to the new car depreciation of $10k to get $12.4k ($10k + $24/10).

 

This is just an example....many car buyers forgot the prepaid depreciation they have incurred when they seold the old cars to buy a newer car with supposedly low COE.

Thinking they are smart to be owning a much lower depreciation car!!

 

 

 

 

 

 

everything is about Depreciation.. if high COE make your car dep 13k per year, it will be more worthy to get a car with lower COE where the dep may b around 7-9k...

[Solar]

Ya.. Many times people calculate depreciation in 10 years, conveniently ignoring the car was not actually used for 10

[Aaronlkl]

2nd hand car dealers how??

When CEO is low, 2nd hand car dealers suck thumb lor..

[Kangadrool]

Very simple...

 

If car no problem, continue to drive.

 

If car shiok to drive, continue to drive.

 

If car got problem, sell to next better owner.

 

If car no shiok to drive, sell to next boring owner.

 

 

[Mkl22]

This is a very odd comment. Before the implementation of the COE system, Singapore roads were full of old cars... very few buy new cars. Cars continue to be maintained and driven even when they are 30 years old. If you don't believe, just look across the causeway.

Not true la. Before Coe there was PARF. Not that many kept the cars unless it was a merc. For up to 1600cc PARF was fixed at 11.2k. Up to 2L was 29k. Above that was 43k. Someone please correct if my data is wrong. I think the values are right but maybe the catagories are not.

 

Anyway it also did not make sense in those days to keep old cars as you do lose quite a substantial parf

[Ct3833]

When CEO is low, 2nd hand car dealers suck thumb lor..

No worries for them, they will continue to make profit. Buy cheaper from sellers, sell higher to buyers

[Porche]

I am still very unclear about the deregistration thing. i went to onemotoring .. check on my value at degre.. about 100k. will i get body money too? one year old e class here with 78k coe. will body money be like 20k? and then total 120k? outstanding loan 90k+... meaning i take back only 30k? new car of equivalent drepre is about 18k . my ride now if dont dereg depre is about 20k. different 2k and i need to refork out money again to down a new car. am i right?

Check with exporters lor, tomorrow check classified.