Renew COE or buy new car

[skipper]

My C180 will be 7 years old soon and mileage is just 49K km. Car loan is fully paid. This will be the longest that we've kept a car. My practical side is saying just keep the car for 3 more years and renew the COE for another 5 years. Downside, of course, will be the condition and maintenance cost of the car. My juvenile side thinks we should replace it soon (or next year at the latest) as the value will drastically drop as it gets closer to 10 years old, even with the low mileage. Any thoughts, especially from car owners in this forum? Much appreciated..

[x9200]

Not sure how is this applicable to C180 but things to consider is availability of the parts. For example, my motorbike (X9) is nothing unique, still a popular model, but there are no new parts already available for it in Singapore. This is even more critical knowing the fact, that in Singapore people do not fix parts but they replace them. I already had to fix the brake caliper by myself and only hope nothing more serous will pop out soon.

[taxico]

you gotta do your sums.

if you renew your COE, you lose the PARF. you could put the PARF towards the downpayment on a newer, and possibly less problematic car.

if you know something about preventive maintenance... you could either get the work done in JB (cheaper, and they fix up most older mercs there), or if you've got the space, tools and inclination, by yourself.

W124s (from the 80s) are still readily repaired and maintained in singapore and malaysia... if your C180 is similar, then you'd be okay. a newer car will not definitively give you LESS problems - if you know your C180 well, you will know what work is due and can budget accordingly.

however if you take out a 5 year COE renewal, you're gonna take a big(ger) hit when you resell the car. car dealers (and consequently you/buyers) get better resale value with a 10 year renewal.

you might get less grief if you just scrap it and get the remainder of your COE back than to deal with singaporean buyers/car dealers... might.

[PNGMK]

I'm pretty certain I'll renew the coe on my 10 year old forester in April and I'll do it for 10 years. It has done 150,000 but I know the car and have a good mechanic. The rebate on parf is only 10k at end of coe for it, adding on a possible 50k coe renewal means the depreciation is around $500/month. I get a 1900 car allowance and would much rather keep most of it. With a 10 year coe renewal you can actually cancel it and claimed the remainder back.

[PNGMK]

Parf Rebate ($10,000) + PCP ($52,000) = $62,000
$62,000 / (12 x 10) = $516.67 per month.
That's pretty good depreciation assuming you pay cash for the PQP.

The cheapest new car runs at around $900 per month if you pay cash and don't finance it - if you finance that cost of money should be factored in as well IMO.

[skipper]

Lost PARF ($18.5K) + 5 year COE ($25K) = $43.5K
Est. maintenance (8x yearly servicing, new wheels, 2x new batteries, etc) = $10K
Total $53.5K / (5 years x 12 mos.) = $892/month

Replacement C180 now at $185K. Loan amount is $111K (60%), balance of $73K from sale/trade-in of current C180 (best case), with interest of 2.78% p.a. = $1,413/month for 8 years + cheaper maintenance cost ($5K service credit).

Are the sums (and assumptions) correct?

[PNGMK]

Top case looks correct.

Bottom case should include the residual value after 8 years (paper value) as a credit.

i.e. (total paid [trade plus loan payments] less paper value) divided by the number of months used.

((73k + (1413 x 8 x 12)) - Paper Value in 2025) / 8 x 12

[skipper]

Top case looks correct.

Bottom case should include the residual value after 8 years (paper value) as a credit.

i.e. (total paid [trade plus loan payments] less paper value) divided by the number of months used.

((73k + (1413 x 8 x 12)) - Paper Value in 2025) / 8 x 12

Residual value should be the 60% of PARF + 2 years COE rebate, right? Thanks!

[PNGMK]

I think so. I am not sure if PARF rebate is a declining value or fixed at 60% of original Parf.

[skipper]

I think so. I am not sure if PARF rebate is a declining value or fixed at 60% of original Parf.

Yes, declining from 75% for < 5 years then 5% every year until 50% for < 10 years. Then drops to zero at 10 years.

I now need to consult with my CFO (my wife -- she's actually a finance professional)..

[taxico]

...

Replacement C180 now at $185K...

if you are happy to go japanese...

a brand new corolla from borneo motors with a 5-year warranty is 99k with quite a few grand change...

selling it is easy as well because most singaporean buyers like that car.

[dylanch]

very tough decision..

[BeJa222]

My C180 will be 7 years old soon and mileage is just 49K km. Car loan is fully paid. This will be the longest that we've kept a car. My practical side is saying just keep the car for 3 more years and renew the COE for another 5 years. Downside, of course, will be the condition and maintenance cost of the car. My juvenile side thinks we should replace it soon (or next year at the latest) as the value will drastically drop as it gets closer to 10 years old, even with the low mileage. Any thoughts, especially from car owners in this forum? Much appreciated..

just scrap lah then get PARF to buy either a new car or another 2nd hand

[PNGMK]

My C180 will be 7 years old soon and mileage is just 49K km. Car loan is fully paid. This will be the longest that we've kept a car. My practical side is saying just keep the car for 3 more years and renew the COE for another 5 years. Downside, of course, will be the condition and maintenance cost of the car. My juvenile side thinks we should replace it soon (or next year at the latest) as the value will drastically drop as it gets closer to 10 years old, even with the low mileage. Any thoughts, especially from car owners in this forum? Much appreciated..

just scrap lah then get PARF to buy either a new car or another 2nd hand

You know this is why Expats hate Singaporeans? You have given no consideration to the damage that scrapping 10 year old cars does. The life cycle environmental damage is nuts. There were some studies done in Australia that showed 30 year old cars; even with their higher consumption; cause less damage to the earth in a life cycle analysis than renewing a car every 10 years. Just bugger off and go kiss your PAP member.

[BeJa222]

My C180 will be 7 years old soon and mileage is just 49K km. Car loan is fully paid. This will be the longest that we've kept a car. My practical side is saying just keep the car for 3 more years and renew the COE for another 5 years. Downside, of course, will be the condition and maintenance cost of the car. My juvenile side thinks we should replace it soon (or next year at the latest) as the value will drastically drop as it gets closer to 10 years old, even with the low mileage. Any thoughts, especially from car owners in this forum? Much appreciated..

just scrap lah then get PARF to buy either a new car or another 2nd hand

You know this is why Expats hate Singaporeans? You have given no consideration to the damage that scrapping 10 year old cars does. The life cycle environmental damage is nuts. There were some studies done in Australia that showed 30 year old cars; even with their higher consumption; cause less damage to the earth in a life cycle analysis than renewing a car every 10 years. Just bugger off and go kiss your PAP member.

what to do, that's the norm here, to control the number of car owners. this is not australia, don't have large mass of lands here so have to get rid of car or pay more to renew COE or to have it fix! if you have better alternative to control owning of cars, then go suggest and hope it gets heard.