Need advice: cheapest car replacement route?

[Mkl22]

On 1/7/2024 at 10:33 AM, Kxbc said:

Ride on TS thread. 

My case

1. Qasqhai 2L non turbo. Accident free except for dented fender due to my careless whacking side mirror into a rubbish bin. 

2. Coe expires mid 2026

3. Parf paid was $20k. By mid 2026,will be $10k

4. I use the car as pt A to Pt B type. Not itchy butt. My last car was 10 years old when I scrapped. Low mileage ~15k km pa. So far, still like the car for adequate torque and bhp. 

5. Only routine maintenance so far except for replaced aircon leak in Yr 5. 

6. Downsides: tyres are expensive due to weird size, battery lasts on average 1.5 years, petrol getting more expensive but I have no nearby ev charging station if I intend to switch to ev. 

My goal is reduce cash outlay overall to put more into my retirement fund.

The period 2026 to 2036 will be my last car as I don't want to drive from late 60s onwards. 

If I renew coe, I will opt for 10 year so that I can stretch it out even more. 

Downsides of coe renewal : higher road tax (110% to 150% than currently $1.4k), higher insurance (still can cover 3rd party? Now $800+). Can the car last another 10 years? I think so, at least 7 to 8.

If I buy a new car, it will be a cat A Japanese b&b model. 

Would you have any guru advice for me? Renew or buy new in 2026?

 

My take is wait and see if there is a gap between cat A and B. If the gap is significant enough then scrap and get a smaller car. 
my parents scraped their 2006 wish and bought a new wish in 2016. Said probably last car so might as well buy new, then extend there after. Reason for another toyota wish is mainly because it is higher, easier entry and exit  and also send grandkids around. But since 2019, it has been mainly just the 2 of them. Mileage is now a low of 7-8k a year. Likely will renew come 2016. 

so new smaller car makes sense if coe diff is large enough and rdtax savings too. FC won’t really matter if you won’t travel much. 
 

as for tire size what size is it now. You can always change the size to a more common size. Don’t care all the nonsense about small percentages of rolling diameter. If you have tried a few brands and types of tire .even the same printed size on the side wall can result in very different widths and profile heights. 

 

Edited January 7 by Mkl22

[Kxbc]

On 1/7/2024 at 11:06 AM, ccc888 said:

2L road tax renewal not worth it imo. Bestest if 1.5L or less.

Beyond 10years really unknown….might have some big repairs heng suay de.

imho, either get a new car and enjoy till u retired (think of ways to earn/grow more money rather than save)

OR stop driving altogether in 2026 and save 200-250k for the last 10years and u could retire earlier perhaps 

On 1/7/2024 at 11:06 AM, ccc888 said:

 

Yr 11 road tax at 110%, 12 @ 120% till Yr 15 @ 150%. Over 10 years, I need to pay ~$11k more for a renewed 2L vs a new 1.6L.

Good to take that into consideration. 

 

[Kxbc]

On 1/7/2024 at 3:50 PM, Mkl22 said:

My take is wait and see if there is a gap between cat A and B. If the gap is significant enough then scrap and get a smaller car. 
my parents scraped their 2006 wish and bought a new wish in 2016. Said probably last car so might as well buy new, then extend there after. Reason for another toyota wish is mainly because it is higher, easier entry and exit  and also send grandkids around. But since 2019, it has been mainly just the 2 of them. Mileage is now a low of 7-8k a year. Likely will renew come 2016. 

so new smaller car makes sense if coe diff is large enough and rdtax savings too. FC won’t really matter if you won’t travel much. 
 

as for tire size what size is it now. You can always change the size to a more common size. Don’t care all the nonsense about small percentages of rolling diameter. If you have tried a few brands and types of tire .even the same printed size on the side wall can result in very different widths and profile heights. 

 

225, 45, 19. Cheapest is $300 per tyre (hankook). Not sure what the common 16 inch tyres on B&B cars are anymore. 

[ccc888]

On 1/7/2024 at 4:12 PM, Kxbc said:

225, 45, 19. Cheapest is $300 per tyre (hankook). Not sure what the common 16 inch tyres on B&B cars are anymore. 

Thats really exp for 19” Hankook tire 😅

if u decide to renew COE, better downsize to 17”

[Watwheels]

I thought there's an option 3?

Become Radx's b!tch? He hands you down his "old" car when he change car. 

Funny, nobody mention. 

[Beehive3783]

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!

3) renew COE 10 years, provided

a: you can afford it

b: you have fixed all the major wear and tear on existing car and good for another 5 years till at least the next major servicing 

[Jl255]

seems like most recommend renewing COE for 10yrs. so the next question is, what is a good strategy to renew COE now? what should i look for in deciding exactly when i shld put in my COE bid?

[ccc888]

On 1/8/2024 at 12:37 PM, Jl255 said:

seems like most recommend renewing COE for 10yrs. so the next question is, what is a good strategy to renew COE now? what should i look for in deciding exactly when i shld put in my COE bid?

Its like asking God when is the best time? U still have 1yr+ time before deciding. Come back in 2025 whahaha

[Jl255]

i didn't ask when lah. i asked what is the strategy? there is no way to know when is the best time, but if we see COE prices coming down in previous bidding exercise, it doesn't mean it will be the case for the next exercise right? does it make sense to just put in a bid for every bidding and see if can get a good price? say i'm happy to pay $50k for coe, shld i just try to bid that?

[Jamesc]

On 1/8/2024 at 1:50 PM, Jl255 said:

i didn't ask when lah. i asked what is the strategy? there is no way to know when is the best time, but if we see COE prices coming down in previous bidding exercise, it doesn't mean it will be the case for the next exercise right? does it make sense to just put in a bid for every bidding and see if can get a good price? say i'm happy to pay $50k for coe, shld i just try to bid that?

Yes

[Beehive3783]

On 1/8/2024 at 1:50 PM, Jl255 said:

i didn't ask when lah. i asked what is the strategy? there is no way to know when is the best time, but if we see COE prices coming down in previous bidding exercise, it doesn't mean it will be the case for the next exercise right? does it make sense to just put in a bid for every bidding and see if can get a good price? say i'm happy to pay $50k for coe, shld i just try to bid that?

COE renewal means you just pay the PQP (prevailing quota premium) at the point of renewal.

What is PQP? the past 3 month average of COE prices. No need to bid for new COE if you are renewing existing COE.

[Beehive3783]

On 1/8/2024 at 9:23 AM, Watwheels said:

I thought there's an option 3?

Become Radx's b!tch? He hands you down his "old" car when he change car. 

Funny, nobody mention. 

His old car made of paper or what? Being his beech means got to engage his undertaking service first, right?

[Jl255]

On 1/8/2024 at 2:19 PM, Beehive3783 said:

COE renewal means you just pay the PQP (prevailing quota premium) at the point of renewal.

What is PQP? the past 3 month average of COE prices. No need to bid for new COE if you are renewing existing COE.

ah tks! didn't know that. so if the past 3mth average price hits my target, i shld just renew even if i still have time left on existing coe? 

[Beehive3783]

On 1/8/2024 at 2:32 PM, Jl255 said:

ah tks! didn't know that. so if the past 3mth average price hits my target, i shld just renew even if i still have time left on existing coe? 

this can go 2 ways

1. if you renewal early, you lose the balance amount of the existing COE and you won't know if COE will drop further when the time on existing COE is really done

2. if you don't renew early when PQP is within your budget, the actual PQP when your existing COE is done, might spike up and exceed your budget

So really, it's a gamble. See you lose little or lose big.  

[Jl255]

On 1/8/2024 at 2:38 PM, Beehive3783 said:

this can go 2 ways

1. if you renewal early, you lose the balance amount of the existing COE and you won't know if COE will drop further when the time on existing COE is really done

2. if you don't renew early when PQP is within your budget, the actual PQP when your existing COE is done, might spike up and exceed your budget

So really, it's a gamble. See you lose little or lose big.  

agreed, that's how i see it too. for me, i think no need to be too greedy. if it hits a relatively good price, low enough, i will just take it. yes, it may go even lower in coming months, but it cld also go higher. so just be content and lock in at a price i am happy with. what do the rest think?

[Beehive3783]

On 1/8/2024 at 2:40 PM, Jl255 said:

agreed, that's how i see it too. for me, i think no need to be too greedy. if it hits a relatively good price, low enough, i will just take it. yes, it may go even lower in coming months, but it cld also go higher. so just be content and lock in at a price i am happy with. what do the rest think?

If that's how you will feel content, then don't bother with what others think  

Edited January 8 by Beehive3783

[Ct3833]

On 1/8/2024 at 1:50 PM, Jl255 said:

i didn't ask when lah. i asked what is the strategy? there is no way to know when is the best time, but if we see COE prices coming down in previous bidding exercise, it doesn't mean it will be the case for the next exercise right? does it make sense to just put in a bid for every bidding and see if can get a good price? say i'm happy to pay $50k for coe, shld i just try to bid that?

If your car is due in 2026,  dont think about it now. If you renew COE now, you end up forgoing your 2+ years of remaining COE,  plus bringing forward your depreciation by 2+ years, it is not worth at all. Moreover, while no one could guess forward COE, COE in 2026 will likely(just my guess) be about the same price as now(or maybe even cheaper) considering the amount of cars to be scrapped  by then. 

Edited January 8 by Ct3833

[Mkl22]

On 1/8/2024 at 8:11 PM, Ct3833 said:

If your car is due in 2026,  dont think about it now. If you renew COE now, you end up forgoing your 2+ years of remaining COE,  plus bringing forward your depreciation by 2+ years, it is not worth at all. Moreover, while no one could guess forward COE, COE in 2026 will likely(just my guess) be about the same price as now(or maybe even cheaper) considering the amount of cars to be scrapped  by then. 

I renewed my previous car in 4/2019 when the coe was due in 12/2022.