Scrap car or hold on to car?

Vinsanne SG

I bought my Picanto at $49,999 (car is 1 year and 2 months old and in perfect condition, high grade tinting, sports rim and mise about 2k total since day one of car). Installments finished two months ago (1 year loan)

My interest was around $550

That means I paid around $52,549 for this car.

This year if I scrap the car, I get around $30,000 to $31,000 from COE rate, PARF and metal value.

At the current rate COE prices is going, I was thinking to get a new Picanto at $2,000 to $3,000 top up (maybe don't need at all if it drops further) or < $30,000 installment to get a Peugeot 206 1.4 SemiAuto (which has always been one of my favorite car).

Should I hold on to my Picanto for good, get a new Picanto (with new 10yr COE) or top up to get the 206?

Please give me sound advise... cos I can be quite an impluse buyer

Thanks
Vincent

Leonong33 SG

sell old buy new=correct..... but sell picanto.... buy picanto again.... machiam somethin wrong leh..........

juz my 3 cents comments....

spencer99 SG

you did value add to your car only TWO months ago... and now you are thinking of selling it....

Shocked

Vinsanne SG

Value added? if you are referring to the tinting and rims, I did that when I got the car.

wbucket SG

Good point here! If you seriously want to change, I would say go for a new model. Of course then you would be in loan again.

From Pi to Pi, although you seems like you got an extra year of driving it. But since you are loan-free in both cases, I seriously wonder when you will houbour the thought of scraping it in the future again.

If I were you, I keep the present Pi. Drive til I am sick of it, save up some money at the same time, go for a better car. Do note that a well-maintain seasoned car might drive better than a brand-new one.

For me, I did too much thing to my Kelisa that I wouldn't think of parting it now.

kmkm SG

I think change old Pi to new Pi is ok. I got a friend intend to change old Sunny to new Sunny. but do consider when you want to sell off the new Pi. Logic is by the time you want to sell new Pi, the scrap value can be lower than your old Pi even though it's a newer car.

e.g. COE was around 25k 1 year ago. So assuming you get new Pi with same OMV at lower COE of 12.5k and want to sell 3 years later, you old Pi can still get back COE rebate of 15k (6yrs left) while your new Pi will only get back COE rebate of 8.75k (7yrs left). Parf rebate for both old and new Pi the same, so you will be worse off at that time unless you can sell off your old Pi at 4k premium (not including body value).

AE86tofu SG

but liddat wun u lose $$ once u scrap the car???

kmkm SG

The moment anyone buys a car, money is lost already as car value only depreciates with time.

Unless the new Pi is kept for a good 10yrs with no more COE and Parf rebates, or for a period when COE+Parf rebate from old Pi age >5yrs is LOWER than the COE+Parf rebate of the new Pi, then it makes sense to buy and PROVIDED the extra cash needed is less than the total depreciation from the old and new Pi age difference (in this case abt 1yr 2mths). e.g. if old Pi is 1.5yr old and new Pi at 30k, should not fork out more than 4.5k for new Pi (assuming old Pi can sell away at price to exactly offset outstanding loan)

Since its unlikely anyone will keep car for 10yrs, then it may be better to change to another model as you will be buying it at the lowest price currently. Moreover, at current low COE prices, not much room to go very much further down, so that means wont get another chance to change car so soon without huge losses. Ask yourself if you want to stick to Pi or get a fresh start with a model that you like better for the many yrs ahead next.

huoye SG

u forgot dat the new picanto paper value is much lower so u r depreciating even more and u have already lost 20k already

Vinsanne SG

I upgraded my ride to something else... I did not get back another Picanto.

Thanks for all the advise,
Vincent

icebaby0 SG

I am getting confuse with Cars now.

Currently i am holding a Ford 1.3 litre car (bought 3/2002)
OMV = $10,137
PARF = $13,178
COE (QP) = $31,484 (when bought)

I am contemplating whether I should scrap it. If I scrap in Nov'05, I will probably get back:

PARF + remaining COE + scrap metal value?

Am I right?

How much is normally scrap metal value?

Looking at the prices of COE and cars now, seems like it's more worthwhile for me to scrap the car (cos i doubt anyone wanna buy my CAR!) and get a new one.

can someone please help me???

wbucket SG

What's that?

Do you have any out-standing loan?

Vinsanne SG

I bought the Peugeot 206 1.4 Tiptronic. Considered quite a old model already... however, it's a "WANT" since 2000 when I watched the WRC in Perth. They won almost all the stages... that was love at first sight... it's only now I find the price really realistic (compared to almost $80,000 back then)

icebaby0 SG

No outstanding loan at all.
Fully paid.

kmkm SG

Something you should consider is that PARF rebate will also start to fall after 5yrs, which means your current car will suffer higher depreciation for the last 5yrs (6th to 10th yr) of its lifespan.

nightsky87 SG

Agree. Why not sell your Pi and buy something else, since car prices are now so low.. You could even upgrade your Cat.

Vinsanne SG

Ya, I sold the Picanto. Bought a Peugeot 206 at $59,000. Used to be my "WANT"... but never materialize... until now...

wbucket SG

Our bro has already dump his PI, so what are you waiting for?

Looks to me your car is depreciating at about 7k+ per year. You will get back about 30k-35k from scraping. So if you don't mind being in Loan again, you could get a Civic that depreciate at about 5.5k per year. Sound more worth it right. Downside is you will be in loan again.

icebaby0 SG

That's what I was thinking but instead we are interested in getting a toyota vois. I don't like to loan, so will probably borrow from in-laws (cos they paid the first time for us and we repaid them later) or pay full the difference. Cos it's less than $15k difference.

Cos currently the calculations I made is that my COE depreciates at $3k+ per yr it's dumb to keep the car. What's more a manual car!

Agree?

Just a curious question, how much is a weekend car? how is it calculated? What timing is weekend cars?

wbucket SG

I perfer manual cars.

Now not more weekend cars, only off-peak cars. Weekdays 7pm to 7am. Sat I think start around 2pm. Sun, whole day. Cost take any car price and minus S$17k. Road tax, rebate S$800, but at least S$50. Read more at OPC scheme