The Hottest Topic Now In Singapore's Automotive Scene.
Hello and welcome to the Car Doctor's virgin blog post.
The topic we are referring to is none other than the one on whether to buy new, enter the second-hand/used market or renew a vehicle's COE (Certificate of Entitlement)* when the said vehicle is nearing the end of its 10 year cycle.
* And yes, for those who don't know, the name says it all. In Singapore, we need to pay for the "entitlement" to own a vehicle for a period of 10 years.
When will we be able to see the light at the end of the tunnel?
Many have written about this topic before, from car journalists, to financial advisors.
Let us share with you our thoughts based on some logic, some experience and some know-how without boring you with tables and numbers.
Purchase A New Ride
1. Only if you are someone who can drive the same car for the whole 10 years. Why?
You might not think about it too much, but a brand new car depreciates quickly. The second you drive off the showroom, a new car depreciates as much as 20%. You lose another 10% in the first year following that if you decide to sell it off after maybe 3 years and with some unpopular models, it's a lot worse, even up to 50%.
2. If you just need to be the first to get hold of a certain vehicle's new feature or you've waited ages for this new model or you get peace of mind because you have faith in it's new car warranty program.
3. Because money or price isn't an issue for you. Then again, maybe you wouldn't be reading this if you fall into this category.
Enter The Used Car Market
1. If you are like me, one who knows he/she isn't going to or will never drive a car for 10 years.
2. Because the enthusiast in you loves that FD2R, CT9A, GC8 and they can only be found in the used car market.
3. You get to change rides every couple of years! Life's too short to hold on to a car for so many years!
4. The de-registration/PARF value is something you take into serious consideration because it determines what your next ride will be.
5. You like things old, classic & retro and they can only be found here.
6. You simply don't want to be the 'fool' who has helped the next owner of your new car 'eat' the chunk of depreciation.
7. We get to step up to a higher-spec model for less money!
Picture courtesy of SGCarmart.
Renew The C.O.E
1. If your vehicle has sentimental value, where others wouldn't understand, only you will.
2. When you are very sure or familiar with the vehicle's condition. You know it has been well 'taken care' of or you've already spent quite a fair bit in repairing worn or damaged parts for the past few years and it's still in tip top condition.
3. You wouldn't go wrong if the vehicle is one of the "popular" makes and models in Singapore because parts will still be readily available due to the sheer number of them on our roads.
4. Due to the fact that the particular model is very sought after, is limited edition, is an enthusiasts only model or no more in production.
5. You like things simple and renewing your ride's COE is the simplest thing to do.
6. Because frankly, it's still the cheapest option among the 3!
There isn't any right or wrong here but take time to seriously consider or ask around for opinions.
Whatever is written above is just for reference or personal opinions so read or take it with a pinch of salt.
There's a lot to consider. Figuring out a budget should be the first priority. Then it's a matter of balancing what you want and what you need. Some people would never go used, and a whole other group of people think new cars are for suckers who don't care about depreciation. There's no right answer, or no best option.