Seeking advice on VES rebate

[Alant]

For used car, the buyer will not enjoy the VES rebate and also the PARF value is low when driven to 10 years.

[ER-3682]

8 hours ago, Alant said:

For used car, the buyer will not enjoy the VES rebate and also the PARF value is low when driven to 10 years.

Just 1 Word,Gov't give you Rebate is NOT full Rebate...Some Cars with Low OMV & High Rebate get $0.00 in 10 Years.

[Alant]

@ER-3682 I thought there is a minimium of ARF value $2500?  I might be wrong

[Volvobrick]

32 minutes ago, ER-3682 said:

Just 1 Word,Gov't give you Rebate is NOT full Rebate...Some Cars with Low OMV & High Rebate get $0.00 in 10 Years.

These cars best to renew the COE.... 

[Alant]

@Volvobrick Thought of buying a used i30 or Stonic, but the low PARF look like not worth to get one.

However, Suzuki Swift 1.0 turbo PARF still okay and performance wise seem like not bad😄

[Brass]

11 hours ago, ER-3682 said:

Just 1 Word,Gov't give you Rebate is NOT full Rebate...Some Cars with Low OMV & High Rebate get $0.00 in 10 Years.

Electric cars on the lower end of the scale as well ...

[inlinesix]

45 minutes ago, Brass said:

Electric cars on the lower end of the scale as well ...

It all boils down whether AD give you back the rebate.

Nissan Leaf depreciation/annum almost 14k. Nissan Leaf price at 140k.

Tesla Model 3 depreciation/annum almost 15.5k. Tesla Model 3 price at 171k

 

[Ct3833]

It is not a simple discussion. 

I cannot solely looking at at PARF alone. In fact, the more PARF a car has, the more upfront money one will have to sink in and  he will only get back  the PARF at the end of the COE life span. Finance people will talk about interest loss over the period of time because of the PARF lock-in. But high PARF would usually mean a higher ARF, that means,  in generally , a higher quality specs of a car overall. So from ARF and PARF discussion, best is to get a car with high ARF but low PARF, in that way, the money does not  have to be tied  by the high PARF till end of COE of a car.

Next is depreciation, the best case is to get a car with high ARF, low PARF and yet low depreciation, that means the car has a better quality specs, yet the owner does not have to tie his money on PARF to wait till end of COE. And when a car comes with low depre, that means the dealer did not mark up a lot in the total sales price in between.

So, the net comparison should  be depre per dollar of quality spec, the more drive comfort, drive luxury, safety features etc one could squeez out of dollar per PARF, that would be the best. it cannot compare base on lowest PARF alone. 

With this, Tesla is the best example in the market here today, high PARF, with VES  rebate to lower its PARF, yet with decent   depre per dollar of quality spec. 

But in real life, buy what one can afford and what he likes.  And the best is in a position that one can afford most of the cars but only like the cheapest car in town 😅😅

 

 

 

Edited May 23, 2021 by Ct3833

[Eyke]

On 5/23/2021 at 10:35 AM, Ct3833 said:

It is not a simple discussion. 

I cannot solely looking at at PARF alone. In fact, the more PARF a car has, the more upfront money one will have to sink in and  he will only get back  the PARF at the end of the COE life span. Finance people will talk about interest loss over the period of time because of the PARF lock-in. But high PARF would usually mean a higher ARF, that means,  in generally , a higher quality specs of a car overall. So from ARF and PARF discussion, best is to get a car with high ARF but low PARF, in that way, the money does not  have to be tied  by the high PARF till end of COE of a car.

Next is depreciation, the best case is to get a car with high ARF, low PARF and yet low depreciation, that means the car has a better quality specs, yet the owner does not have to tie his money on PARF to wait till end of COE. And when a car comes with low depre, that means the dealer did not mark up a lot in the total sales price in between.

So, the net comparison should  be depre per dollar of quality spec, the more drive comfort, drive luxury, safety features etc one could squeez out of dollar per PARF, that would be the best. it cannot compare base on lowest PARF alone. 

With this, Tesla is the best example in the market here today, high PARF, with VES  rebate to lower its PARF, yet with decent   depre per dollar of quality spec. 

But in real life, buy what one can afford and what he likes.  And the best is in a position that one can afford most of the cars but only like the cheapest car in town 😅😅

 

 

 

to calculate (accurate) depreciation, must account for all factors:

buy price - sale price (if sell in future)/PARF+COE rebate (if scrap) DIV num of years owned