Need advice: cheapest car replacement route?

[Jl255]

On 1/6/2024 at 12:20 AM, ccc888 said:

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.

why if my scrap parf value<$15k then renew coe is the best option?

[Jl255]

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. 

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?

On 1/6/2024 at 12:20 AM, ccc888 said:

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.

why if parf value <$15k then renew COE is best option?

 

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. 

[Jamesc]

COE is low.

Now is the best time to get a new or used car from the best known and thrusted car dealer in MCF.

[ER-3682]

On 1/6/2024 at 11:54 AM, Jl255 said:

why if my scrap parf value<$15k then renew coe is the best option?

Depends on the Car's Mileage & Condition.

[Jl255]

On 1/6/2024 at 12:21 PM, ER-3682 said:

Depends on the Car's Mileage & Condition.

car still seems to be running perfectly. mileage < 100k

[ER-3682]

On 1/6/2024 at 12:23 PM, Jl255 said:

car still seems to be running perfectly. mileage < 100k

Then Renew COE,Renew 10 Years,can fetch better price if you decide to change Car let's say on the 14th Year.

[shinkong]

On 1/6/2024 at 12:23 PM, Jl255 said:

car still seems to be running perfectly. mileage < 100k

If running OK with no major problems, relatively low mileage @100k++, the lowest cost would be renew COE to 10 years.

[ccc888]

Yeah like what others said, Honda Freed <100k mileage is a keeper.

Now js pray COE low low in 2025.

Along the way if COE miraculously drop below 40k, can change new car. Option is there if it happen haha.

[Mkl22]

On 1/6/2024 at 11:54 AM, Jl255 said:

why if my scrap parf value<$15k then renew coe is the best option?

If parf is low then you lose less. When you renew coe this parf goes when the car exceeds 10years.

what I’ll do is wait till close to june2025. See what coe is then. Assuming it’s still 65k, you can take gamble and see if coe will drop in further 2028. When that time comes sell or scrap the Freed and buy a new car. Your depreciation would then be 19.5k + 8.9k = 9.5k/yr. If the new car depreciation is 6.8k or even a bit more, Buy a new car. You will then get the same 7.4K/yr which is what your coe Freed is on, else drive on till 2035. 
maybe I can accept a 1-2k premium per year on depreciation as it is a new car then maybe up to 8.9k depreciation for the new car can be acceptable. 
I know the math and calculation can be a little overwhelming but you do need to calculate if you want to save. 
Your mileage isn’t that high. This is the most cost effective, unless you yearn for a new car then it’s not longer about being cost effective. 

[Volvobrick]

On 1/6/2024 at 11:49 AM, Jl255 said:

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. 

That's low enough to consider renew COE if the car is reliable and you do need to impress anyone with a new car. Just wait and if (assuming it's Cat A) coe anywhere near 30k plus just renew even 1 year in advance. Might happen. 

This may help you plan :

Edited January 6 by Volvobrick

[Soya]

On 1/6/2024 at 3:45 AM, Jamesc said:

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

7-8k MCFers cough a bit onli that amount will drop out of their pocket la....

 

[Jamesc]

So he should renew when few cars are being scrapped - less compe

[Jamesc]

On 1/6/2024 at 2:31 PM, Volvobrick said:

That's low enough to consider renew COE if the car is reliable and you do need to impress anyone with a new car. Just wait and if (assuming it's Cat A) coe anywhere near 30k plus just renew even 1 year in advance. Might happen. 

This may help you plan :

So he should renew when few cars are being scrapped - less competition for new cars COE will be low

Or

Renew when many cars are being scrapped when many new COE will be available but many people also buying new cars to replaced the recently scrapped cars?

[Jamesc]

I have the best advice for you!

If you think renew COE is cheapest then renew COE of your Freed.

If you think buy new car is best then scrap the Freed and buy new car.

If you think COE will drop more next year then don't rush now and only take action next year.

If you think COE is the lowest now then please fast hand and fast leg and take action now and don't wait and wait and hesitate as time and COE waits for no man.

I guarantee you 100% my advice is the best advice you can get in MCF.

All the people here with their 2 cents are very intelligent and wise but they are only amateurs.

I am a professional car dealer with many many years in the car industry and you ask anybody here the advise I give here is the best advise and 100% correct true or not!

100% true and cannot cannot go wrong one true or not!

Edited January 6 by Jamesc

[Jamesc]

My advise is the best advice for the TS with his particular situation.

If anybody here think he has better advice for TS than me, TS please disregard my advise and follow his advice.

If he is wrong and you did not do the right thing and bought at the lowest price possible please go and wallop the person jialat jialat

Edited January 6 by Jamesc

[Jamesc]

TS please weight up all the different people here and take the best advice you think is best for you and your particular situation.

I always tell everybody I am not one of those people that thinks I am always right.

I am not one of those people that thinks I know everything.

I can tell anyone here I don't know everything.

I can tell anyone here I don't have crystal balls and I cannot see the future.

If anyone has a better idea what to do and when to buy I also very interested to know I will follow that person advice.

Edited January 6 by Jamesc

[Lala81]

On 1/6/2024 at 2:31 PM, Volvobrick said:

That's low enough to consider renew COE if the car is reliable and you do need to impress anyone with a new car. Just wait and if (assuming it's Cat A) coe anywhere near 30k plus just renew even 1 year in advance. Might happen. 

This may help you plan :

Mine is 16k parf rebate so that's pretty significant. Scrap Jan 25. Almost certainly not going to renew. 

A 7-8 year old car maybe an option. 

 

Edited January 6 by Lala81

[Jamesc]

This is a very good thread.

I think TS and I are going to get a bargain.

I also want to get a car at the lowest possible price.