hi EnglishEnglish wrote:Anyone out there that can offer advise?"
Thinking of buying at last (been here quite a few years already and have paid a fortune in rentals) Perhaps something 5 years old?
Anyway, I still do not totally understand the complicated system.
i.e. the price in the newpaper is what you pay? What's 'PARF', 'OMV', 'COE' and apart from what they stand for, what do they mean in relation to my purchase?
Thanks,
English
What do you reckon?christay wrote:When buying a used car, you must be COMPLETELY aware of OMV, COE, and PARF. This is because the value of a car comprises the following:
1) The underlying tax rebates (comprising COE rebate and PARF rebate both termed as "paper" value)
2) The actual value of the physical car (sometimes called the "body" value)
3) A premium over 1 & 2 above in many cases to align the car's value to that of a new equivalent.
Only cars less than 10 years old are eligible for PARF rebates. COE rebates are calculated on a straight line.
PARF rebates are calculated now as a percentage of ARF which in turn, is a % of OMV.
In general, cars here are either vintage 2002-2007 or pre 1994. This is because paper values for cars in between were so high that it was more viable for the cars to be deregistered, and the owners taking back the tax rebates.
For 2002 - 2007, generally speaking, the older the car, the higher the paper value as a % of the total car price. This is because of changes in the tax regime in June 2002 and April 2004. COE has also been declining generally.
A good example would be a 2003 corolla with climate control. Paper value $33k, body value $10k. total $43k. but you can buy a 2005 Altis for that amount too! But the Altis' paper value may only be $25k or so....and it's body is not worth 18k+.
So why would one buy a 2003 corolla? People do. Because you can model your loss over time very accurately.
If you are paying cash, try to buy a car paper plus body like the corolla above. cars mid 2003 - mid 2004 fall into this category generally...at least for bread and butter cars like corollas, sunnys and the like.
If you need a loan, try to buy a car with as high a paper value as possible. This is your underlying collateral. Cars vintage mid 2004-early 2005 could fall in this category. That plus you can stretch the tenure of the loan a little further.
In general, the more expensive the new car equivalent is today, the harder it is to buy a second hand car at paper plus body. Good example, Porsches, etc.
Hope this was useful
PS: AML is a great place to window shop. But please (seriously!), Caveat Emptor... do your homework, legwork, research, etc. It will save you thousands.
PPS: If you are considering a car and need specific advise, please reply to this post, stating
make and model
colour
transmission type
mileage (hopefully genuine)
date of registration
year of manufacture
OMV
PARF at 10th year
COE paid (and the category paid)
Asking price.
I will reply and try to give you an accurate value.
I dont' know.....bluexob wrote:Y not get a new small,compact and economical car??....
At least u can enjoy the warranty,free servicing,labour and parts and low interest rate now..And low maintenance..
Used car???
U dont able to enjoy that priviledge..
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