Should I get a new car or renew COE?

[Ct3833]

On 9/5/2024 at 8:29 AM, Ginyu said:

If only clock 50k mileage over a period of 9 years , more likely can do without the car. there are people who buy and park most of the time at home, only use it once a while🤣

Need or no need a car is not the consideration, but people said having a car in sgp is a luxury, so i own a COE car to enjoy the luxury lor 🤣

[Volvobrick]

On 9/5/2024 at 3:57 PM, Ct3833 said:

Need or no need a car is not the consideration, but people said having a car in sgp is a luxury, so i own a COE car to enjoy the luxury lor 🤣

Or just want to deprive another person from enjoying cannot meh?  My annual mileage now also very low, no more school runs and away overseas more often.

[GaryFoo]

On 8/17/2024 at 3:32 PM, kingofxiaomi said:

I apologise in advance if I'm out of topic, but I'm trying to figure out how to calculate the FULL cost of renewing COE.

From what I've read online, it seemed like I have to just pay the PQP amount? So let's say I want to renew a Cat B car with a PQP of 100k, I only have to pay this 100k? Are there additional cost to it? Cos it doesn't make sense that I can get a low Cat B car for the same price as a high Cat B car. Of cos, we are not calculating road tax, insurance etc. Just the car itself.

Thank you!

edit: I am also assuming the final price of the renewed COE car depends on supply and demand, right? so it's PQP + whatever people wanna sell at.

You just pay the pqp when renewing, since the car already yours to begin with. 

 

If you're talking about the resale value of the car, then it's about market demand and supply. Mainly influenced by Coe rates at that moment, not the pqp you paid. 

[Avragoh]

Apologise for being out of topic.

If 2009 Altis and 2009 Camry having same depreciation value, which would you choose should we not take the car condition into consideration...

[Lala81]

On 10/7/2024 at 10:27 PM, Avragoh said:

Apologise for being out of topic.

If 2009 Altis and 2009 Camry having same depreciation value, which would you choose should we not take the car condition into consideration...

I would take the Camry of course. 

[Beehive3783]

On 10/7/2024 at 10:27 PM, Avragoh said:

Apologise for being out of topic.

If 2009 Altis and 2009 Camry having same depreciation value, which would you choose should we not take the car condition into consideration...

If you can afford the COE car road tax and poorer fuel economy for a 2.5L engine, then by all means, take the Camry.

Other than that, the other expenses are more or less similar I suppose.

 

[107fan]

PARF car COE ending in 5+++ years' time. Never had to consider this but good to think early I guess.

Is it always a good idea to take a COE loan as a hedge? Seems very popular.

[Mkl22]

On 10/8/2024 at 11:27 PM, 107fan said:

PARF car COE ending in 5+++ years' time. Never had to consider this but good to think early I guess.

Is it always a good idea to take a COE loan as a hedge? Seems very popular.

Interest is high

[Ginyu]

If renew COE, still need to take loan, then do yourself a favour, don’t torture yourself This is already a sign showing the high cost of car ownership here is beyond your affordability .  Take the bus and moved on. You will sleep better every night🤣

Edited October 9 by Ginyu

[Beehive3783]

On 10/9/2024 at 8:27 AM, Ginyu said:

If renew COE, still need to take loan, then do yourself a favour, don’t torture yourself This is already a sign showing the high cost of car ownership here is beyond your affordability .  Take the bus and moved on. You will sleep better every night🤣

If the interest rate is low enough that you can cover it back from some investment that gives more, why not?

The worst group are those who register PHV just to max out the loan to 10 years, and then have to drive PHV part time on weekends to cover the car expenses  

Edited October 9 by Beehive3783

[Columbian78]

I am renewing coe this month (coe expire Nov).

When you renew coe, do you just go for third party insurance?

I had been on comprehensive all along.

[tarbo]

On 10/9/2024 at 10:13 AM, Columbian78 said:

I am renewing coe this month (coe expire Nov).

When you renew coe, do you just go for third party insurance?

I had been on comprehensive all along.

There are insurance companies that do offer comprehensive for renewed COE. 

Usually the reason why most go for comprehensive is due to loan. Finance companies usually require comprehensive insurance, and for them to be named as the hire purchase company in the CI.

Unless you are taking a loan, it really depends on your risk appetite and what the insurance company provides.

[Ginyu]

On 10/9/2024 at 8:46 AM, Beehive3783 said:

If the interest rate is low enough that you can cover it back from some investment that gives more, why not?

The worst group are those who register PHV just to max out the loan to 10 years, and then have to drive PHV part time on weekends to cover the car expenses  

Say 100K COE loan at 2.78% is around $1.4K monthly for 7 years then one need to have at least 10000 bank shares to cover the monthly repayment for the loan from the dividend payout. If can afford to buy 10 lots of DBS shares, not those average joe on the streets liao.Since have such strong investment monthly returns then why don’t go for brand new car instead🤣

Edited October 9 by Ginyu

[inlinesix]

On 10/9/2024 at 10:30 AM, Ginyu said:

Say 100K COE loan at 2.78% is around $1.4K monthly for 7 years then one need to have at least 10000 bank shares to cover the loan from the dividend payout🤣

I think he meant to use dividend to cover the interest rather loan + interest.

[Columbian78]

Just curious. If you lose the whole car, you wil not lose the remaining paper value right?

Lets say I lose the car today (stolen, fire, or accident totalled), the worst case is LTA give me back the coe remaining. Assuming bread butter coe car, there is materially zero value in the car body.

Minor repair i pay, major repair I scrap.

With 3rd party insurance (with fire) they will pay for damages caused by me to others.

Putting law aside, buying insurance that covers own car is when the market value of the car is higher than the paper value (guranteed). Thats the case for new cars. When this gap is small or zero in the case of old/coe cars then it is not really worth it.

These are my thinking, did I miss anything.

For those with coe loan, do the loaner require comprehensive insurance? 

Edited October 9 by Columbian78

[Matoonia]

On 10/9/2024 at 10:44 AM, Columbian78 said:

Just curious. If you lose the whole car, you wil not lose the remaining paper value right?

Lets say I lose the car today (stolen, fire, or accident totalled), the worst case is LTA give me back the coe remaining. Assuming bread butter coe car, there is materially zero value in the car body.

Minor repair i pay, major repair I scrap.

With 3rd party insurance (with fire) they will pay for damages caused by me to others.

These are my thinking, did I miss anything.

For those with coe loan, do the loaner require comprehensive insurance? 

Yes that will be what I'm thinking in 2 years time. for coe cars the safety net is really quite high, unless ur car is high parf which you forfeited. 

But if only forfeit less than $10k parf for bread and butter, then actually risk is rather small and anytime want to scrap cash out also possible esp when faced with hefty repair costs, u only lugi the forfeited parf. Even if put in worst financial timing, u scrap 1 day after renew u still only lose the parf. 

[Beehive3783]

On 10/9/2024 at 10:30 AM, Ginyu said:

Say 100K COE loan at 2.78% is around $1.4K monthly for 7 years then one need to have at least 10000 bank shares to cover the monthly repayment for the loan from the dividend payout. If can afford to buy 10 lots of DBS shares, not those average joe on the streets liao.Since have such strong investment monthly returns then why don’t go for brand new car instead🤣

Ya that's true also  

[Beehive3783]

On 10/9/2024 at 10:44 AM, Columbian78 said:

Just curious. If you lose the whole car, you wil not lose the remaining paper value right?

Lets say I lose the car today (stolen, fire, or accident totalled), the worst case is LTA give me back the coe remaining. Assuming bread butter coe car, there is materially zero value in the car body.

Minor repair i pay, major repair I scrap.

With 3rd party insurance (with fire) they will pay for damages caused by me to others.

Putting law aside, buying insurance that covers own car is when the market value of the car is higher than the paper value (guranteed). Thats the case for new cars. When this gap is small or zero in the case of old/coe cars then it is not really worth it.

These are my thinking, did I miss anything.

For those with coe loan, do the loaner require comprehensive insurance? 

1. Paper value in this context i take it to mean balance COE rebate. Yes, you will not lose that rebate in the event of total loss.

2. By right, all cars under financing are required to have comprehensive insurance.

3. By left, COE cars are only able to get comprehensive cover up till 15 years old. After that, nobody will offer comprehensive anymore (my recent experience), even if your car might still be under financing.