Saturday, February 25, 2017

Random thoughts: Buy New, buy used or just renew COE?

I had the weirdest experience.

My friend recently Trade in his previous Toyota Altis for 30K (about same age as mine) and bought a new one.

I thought: Wow, it's still worth so much. Assume Mine is worth 20K, it might be worth it to consider getting a new attrage (the cheapest Japanese saloon in market)

I called the Mitsubishi showroom and ask for a quotation. I was quoted 8K for my Vios of mileage 180k. When I say de-registering the car now or by May would give me 8K too, since my ARF is about 14K and I have 1 more year to go. She didn't reply.

So, guess I am still back to my original plan of renewing COE.

Maybe my friend mileage is low. But the trade-in value is quite ridiculous IMHO.

Had I manage to get a higher trade-in value, the depreciation rate might have convinced me to jump ship and consider getting a new car. But it's about the same rate of depreciation now:

Assume I renew my car for 5 years for 25K and gave up my PARF of 7k. It's 32K. So depreciation is less than7 K a year.

Trading my car for a new Attrage would also mean I get a depreciation of 8K a year.

Not very huge difference if u ask me, but I would have much better cash flow renewing my car since I need not worry about loans. As for servicing or repair, I think it is still much cheaper then paying a loan of about 500-600 per month. 

But I would get to drive 5 years more. I am quite sure my wife would like to have the convience of a car. I would like to provide for that too. 

The savings of $600 over 5 years would be $36000, which could be my downpayment for my next car, if I so wish to get 1. 

I looked at second hand car of 1-2 years too, but a search of Sg carmart for cars register from 2015 onwards show prices about the same for a brand new Attrage. Makes no sense to me again. If I look at cars with 5 years Remaining. It's the same. 

But looking around for options does help me make a more informed choice.  


  1. My Theory:
    The 'ridiculosly high' Toyota new car price - The 'ridiculously high' old car trade-in $
    = reasonable net price for Toyota new car
    plus loan amount is higher I believe
    Perhaps above now explains

  2. Hi Anon,

    What you says makes lots of sense, anything could be the mileage, I know my friend is a low user. But I suspect your explanation is the dominating factor

  3. Hi SI,

    Don't trade in lah, usually sucky deal. I think your friend is trading in and buying from the same dealer so maybe there's some compromise to be had there. When I sold my old car, I was quoted very low price from a dealer. So I went to car quotz ( They will valuate your car, and based on their system, give you a rough price. Then, they will send it for bidding and let all the dealers bid. Ultimately you can reject the final price if you don't like it. We don't, so we went back to the same dealer, and said someone quoted us xxx amt, and he raised the price there and then and we had a deal.

    Go try it.

  4. Hi SI,

    I take it that yours is a 10 yr old Vios. Look at this search results:

    The price range for the selling price is 16.4k to 34.6k. Way better than the 8k given by the trade in. Really go try it.

    1. LP,

      Thanks a lot. I am trying it. U are just asking me to get a quote right? Or sell the car and use the money to buy through that platform

    2. Wow!! LP I just saw the link, if I get 30k I will give u treat and buy u milk powder for your baby! Lol.
      Think I can change new car if I get that

  5. Hi SI,

    Haha, no need to treat me - I'll be happy if you can find a good deal :) Go call them up, ask for a slot for them to see your car and valuate (they will inspect inside and upside down and take pictures). Then they will put it up to their site for some days for traders to bid. If you're not happy, never mind, no need to sell. Read the entire process if you're interested, I can't quite remember the details.

  6. Ok ok. Will defintely try. Like the part about flexible handing in of car ... was thinking will kena a period without car