Need advice: cheapest car replacement route?

[Jl255]

Need advice from the gurus. My car COE expires in 2025. I'm looking for the most cost effective route to owning a car. 

Some options:

1) Renew COE for another 5yrs

2) Buy a 2nd hand car

Which of the 2 options is cheaper in the long run? If option 2, when should i be buying the 2nd hand car? I just want the cheapest option. Or is there another cheaper option that i'm not aware of? Tks!

Edited January 5 by Jl255

[ccc888]

Cheapest depreciation or lowest downpayment/capital outlay?

 

Brand new car actually has similar depreciation (in some cases even lower) compared to 2nd hand now.

[Jl255]

Really? Hard to believe depreciation can be lower for brand new car than 2nd hand.

Extending COE does not mean it is the cheapest route right? cause i will not get anything back from my car but if i replace, i will at least get something back, which will go to lowering the cost of ownership of the new vehicle....

[ccc888]

On 1/6/2024 at 12:09 AM, Jl255 said:

Really? Hard to believe depreciation can be lower for brand new car than 2nd hand.

Extending COE does not mean it is the cheapest route right? cause i will not get anything back from my car but if i replace, i will at least get something back, which will go to lowering the cost of ownership of the new vehicle....

Next wk go motorshow and then compare with 2nd hand lor. (Get some quotes for yr trade in value as well)

If yr current car scrap parf value <15k, then renew COE will be the cheapest provided u have the crystal ball COE in 2025 will be similar or lower than 65k now.

[Davidklt]

On 1/6/2024 at 12:09 AM, Jl255 said:

Really? Hard to believe depreciation can be lower for brand new car than 2nd hand.

Extending COE does not mean it is the cheapest route right? cause i will not get anything back from my car but if i replace, i will at least get something back, which will go to lowering the cost of ownership of the new vehicle....

Yes. This is what I found out too. Apparently,used car dealers want to capitalise on those that cannot afford the downpayment. This has in turn led to direct owners charging the same unrealistic price.

[Confusedboi]

used car depreciation especially those left less than 2 years COE lifespan is extremely high and insane, easily 12-15K per year or more🙄 even for COE renewed bread and butter  cars.

Used car dealers take opportunity to chop people  especially those that just look at the sum of 20-30K lump sum for a car to tide over short term instead of looking of the depreciation per year.

Rough gauge in this crazy used car market, 1k per month minimum, looking around 12k-13K  depreciation minimum for a car that can only drive 1 year.

All the ads on sg car mart will say cheaper than rental blah blah blah🙄

Pre covid it was closer to 7-8K depreciation a year up to 2019 end for bread and butter cars

Edited January 5 by Confusedboi

[Jamesc]

If anyone selling car for  7-8K I have buyers with full cash.

[Brass]

Actually, I wonder how dealers would be picking up auction cars nowadays, and at what price point.

This massive fall in COE might be a shock to some used car dealers and it might be time for OP to swoop in if he can pay in full.

I bought a Citroen C4 Cactus back in 2022 from DFM and sold it last September. (lol)

All was good except the alternator, and cosmetic wear and tear (conti stuff you know)

 

Edited January 5 by Brass

[ER-3682]

Take Public Transport Cheapest...

[Jamesc]

I am looking for the cheapest car.

Anyone got lobang please share with TS and me.

[Mkl22]

On 1/5/2024 at 11:55 PM, Jl255 said:

Need advice from the gurus. My car COE expires in 2025. I'm looking for the most cost effective route to owning a car. 

Some options:

1) Renew COE for another 5yrs

2) Buy a 2nd hand car

Which of the 2 options is cheaper in the long run? If option 2, when should i be buying the 2nd hand car? I just want the cheapest option. Or is there another cheaper option that i'm not aware of? Tks!

So vague….

what car , what’s the parf. Want to ask and don’t want to tell more. 
if a Renault, or any French, then just scrap! You get more value back!!!. Don’t bother renewing. 😂

Edited January 6 by Mkl22

[Carbon82]

On 1/5/2024 at 11:55 PM, Jl255 said:

Need advice from the gurus. My car COE expires in 2025. I'm looking for the most cost effective route to owning a car. 

Some options:

1) Renew COE for another 5yrs

2) Buy a 2nd hand car

Which of the 2 options is cheaper in the long run? If option 2, when should i be buying the 2nd hand car? I just want the cheapest option. Or is there another cheaper option that i'm not aware of? Tks!

Car ownership is a very complex matter (unless $$$ is not an object) and should be allowed to be a FYP for degree course.

OK I will try to provide you with some pointers for the 2 options of yours. 

1. To renew COE, you have to be sure your car is in good running condition, and most will said must be a non-conti make (reliability point of view). And go for 10 years renewal instead of 5 years if your PARF value is substantial ($15K or more) so that your paper depreciation will be lower. 

2. Buying a 2nd hand car need a lot of research and leg work as every single car is different, not just about model / colour / accessories , but the condition and perceived reliability. Engine, gearbox, electronic are areas you need to pay special attention to, instead of how shiny is paint work or the number of creases on the leather seats. 

As some has pointed out, the price might appears cheaper but depreciation is normally not much lower than new car, while some can even deprecated ore than new. Also, interest rate is typically higher than new car, so do factor all these into your equation. 

With COE premium stabilizing, and may be even lower come end of 2024, save up / earn more to aim for a new car would be a better choice. You have to manage your own expectations, such as the brand and model, cat A VS cat B, compact and economical hatchback / sedan vs premium compact sedan/ SUV, etc. 

Do share with us what are you currently driving and what model are you looking at (for used car), so that we can provide you with better advices. 

[mersaylee]

On 1/6/2024 at 6:58 AM, ER-3682 said:

Take Public Transport Cheapest...

Yalor...BMW cheapest alternative...good for health...both body and wallet...😁

[inlinesix]

On 1/6/2024 at 10:33 AM, mersaylee said:

Yalor...BMW cheapest alternative...good for health...both body and wallet...😁

But ppl complain public transport expensive le

[mersaylee]

On 1/6/2024 at 10:36 AM, inlinesix said:

But ppl complain public transport expensive le

Compare with others...maybe yay...compare to cars here...a resounding nay...😂

[Mkl22]

On 1/6/2024 at 10:16 AM, Carbon82 said:

Car ownership is a very complex matter (unless $$$ is not an object) and should be allowed to be a FYP for degree course.

OK I will try to provide you with some pointers for the 2 options of yours. 

1. To renew COE, you have to be sure your car is in good running condition, and most will said must be a non-conti make (reliability point of view). And go for 10 years renewal instead of 5 years if your PARF value is substantial ($15K or more) so that your paper depreciation will be lower. 

2. Buying a 2nd hand car need a lot of research and leg work as every single car is different, not just about model / colour / accessories , but the condition and perceived reliability. Engine, gearbox, electronic are areas you need to pay special attention to, instead of how shiny is paint work or the number of creases on the leather seats. 

As some has pointed out, the price might appears cheaper but depreciation is normally not much lower than new car, while some can even deprecated ore than new. Also, interest rate is typically higher than new car, so do factor all these into your equation. 

With COE premium stabilizing, and may be even lower come end of 2024, save up / earn more to aim for a new car would be a better choice. You have to manage your own expectations, such as the brand and model, cat A VS cat B, compact and economical hatchback / sedan vs premium compact sedan/ SUV, etc. 

Do share with us what are you currently driving and what model are you looking at (for used car), so that we can provide you with better advices. 

With basic coe cars need to get popular models that lots renew. 
Just experience that even a 2006 Nissan latio has some problems finding some brand new original parts. 
too many models in the car market now. Lots of spare part stockist don’t keep much unless the many on the road like the altis. 
with rarer conti, good luck sourcing. Either pay lots or wait for shipment from Europe or both. If it’s a lotus, sure let it sit and wait, owner can afford. 
A bread and butter conti needs to be up 24/7. Else not much use as a daily commuter. 

Edited January 6 by Mkl22

[Jl255]

Tks for all the suggestions, it's been helpful. 

Not sure what info is required, but i see on onemotoring, my minimum parf benefit is $8.9k. 

[Jl255]

@Carbon82 am driving a honda freed and i still need a minivan type for the replacement.

 

so it seems your advice is to get a new car at possibly the end of the year when coe might be lower? is there a strategy on how to time the purchase?

Edited January 6 by Jl255