Prices of used cars

[x9200]

Is my observation correct that 2-3y old cars are now like 40-50% of the value of their brand new equivalents? COE is mad at this moment but I would expect used cars still to be priced accordingly.

[Strong Eagle]

The price you pay will include an allowance for the remaining COE. The question is: what will that allowance be?

If the COE was bought 6 years ago, it cost around $24,000, if I recall. New COE's are pushing $40K. Therefore, you would expect to have a COE addition (in addition to the price of the car) in the range of $9600 to $16,000.

[x9200]

Yes, this is exactly what I would expect but I do not see it so I am not sure if I got the things right. An example:

http://www.sgcarmart.com/used_cars/info ... 82&DL=1001

~40k for a 3y old, 1.6l car. New one like this would be above 80k. Is there a hidden cost behind this listing?

[revhappy]

Yes, this is exactly what I would expect but I do not see it so I am not sure if I got the things right. An example:

http://www.sgcarmart.com/used_cars/info ... 82&DL=1001

~40k for a 3y old, 1.6l car. New one like this would be above 80k. Is there a hidden cost behind this listing?

I think, in that particular ad the COE at the time of registration was 15.6K. So with 7/10th of the COE value remaining ~= 10K. Hence the price isnt that high.

Also OMV value of the car listed is also surprisingly low, just 11k. May be its because the model is the older lancer and hence low resale. I would imagine the Lancer EX model is hotter

[Strong Eagle]

Yes, this is exactly what I would expect but I do not see it so I am not sure if I got the things right. An example:

http://www.sgcarmart.com/used_cars/info ... 82&DL=1001

~40k for a 3y old, 1.6l car. New one like this would be above 80k. Is there a hidden cost behind this listing?

I think, in that particular ad the COE at the time of registration was 15.6K. So with 7/10th of the COE value remaining ~= 10K. Hence the price isnt that high.

Also OMV value of the car listed is also surprisingly low, just 11k. May be its because the model is the older lancer and hence low resale. I would imagine the Lancer EX model is hotter

Just to add... it may be very high mileage, and/or someone treated it like crap. But I agree. With OMV of $11K and asking price of $40K, and 7/10 of current value of COE = to about $28K, you can see why the price is what it is.

I have no hard evidence and am far from expert but I think first couple of years of depreciation in Singapore is generally worse than elsewhere.

[x9200]

There are literally hundreds ads like this so hard to believe these are all some special cases. The market price for these 2-3y old cars should reflect also much higher COE of today. For some reason it does not and this is the part I do not understand.

[revhappy]

There are literally hundreds ads like this so hard to believe these are all some special cases. The market price for these 2-3y old cars should reflect also much higher COE of today. For some reason it does not and this is the part I do not understand.

High COE prices do get reflected in used cars but not as much as you are expecting. I remember seeing car ads in late 2009 when COE prices were around 18k-20k. That time 2-3 year old Toyota Corolla's were quoting 30k.Honda and Toyotas always command higher resale than Mitsubishi. Now you will see Corolla's quoting around 50k. So the higher COEs are in the price already.

I guess you are a car seller and that why it doesn't make sense to you. Hehehe.

Edit: You could just call up a couple of used car dealers to make sure that those prices are final and dont include any other hidden costs.

[x9200]

Just opposite, a potential buyer.

[Strong Eagle]

Just opposite, a potential buyer.

I bought a car with 18 months of COE left for $3000. Yes, it was a better than average deal, but if you look around, you can find cars, mostly high mileage that you can buy for $3000 to $5000 with 1 to 2 years of COE... not a bad deal for car and COE given today's COE prices.

[x9200]

I remember you wrote about this before and I think it is a very decent price and option for a 2nd or a weekend car but I would be a bit afraid using it for daily commuting. If unlucky you may end up investing few thousands just to keep it on road.

[SpawnyWhippet]

I bought a 2007 Impreza for $35k, shockingly expensive for any other country, but seems cheap compared to the equivalent Toyota / Honda cars in Singapore. I normally only buy European cars, but here they are outrageously expensive. I bought a Porsche 911 in the UK for less than the price of my Impreza here.

[Shahir.SLP]

I bought a 2006 Toyota Vios 89000km mileage for $33 000. Good deal anot?

[sundaymorningstaple]

Boy did they see you coming!

[newsman]

I bought a 2006 Toyota Vios 89000km mileage for $33 000. Good deal anot?

This is Year 2011 Dec. U got a good deal @ S$33K.

[Strong Eagle]

I bought a 2006 Toyota Vios 89000km mileage for $33 000. Good deal anot?

You really have to look at this from the perspective of "how much does it cost you per year" to own this car.

A 2006 car has about 5 years left on the COE. When you turn the car in, you will get a rebate on the registration tax. You need to see how much you get back when you turn in the car.

I think your deal is OK. You have a Toyota, a premium brand. My guess is when you take your buying price less PARF rebate and divide it by remaining COE years, you'll be paying $5500 to $5700 per year.