Used Car ad interpretation and advice

[rama]

Can someone help me interpret the various ways in which used car prices are listed in the Straits times and other locations?  I am particularly puzzled by the "scrap value" number.  Aren't cars supposed to be scrapped after a maximum of twenty years - and hence, at the end of that, should they have not have any value at all?   That was my understanding of the renewal of COE rules - that once it expired at the end of the first ten years, you could extend it for another ten years at most.  But there are ads for '83 models with COEs that are valid past 2006 and beyond - and even ads for '70 Beetles.  

Is it at all possible to get a very reliable car for 500-600 a month (all inclusive - depreciation + COE)?  What models/years would be in this range?

Also, if you rent a car long-term, can you turn it in while you are out of town on week-long or longer breaks, and have that count towards extending the lease?

Thanks much for answers to any of these questions.

[Rob]

Scrap value or PARF (80% or OMV - open Mkt value, the origianl base value of the car )is the amount of cash you will get back from the govt if you scrap your car - as an incentive to buy a new one.

COE all last 10yrs. After that time, they can be renewed at the prevailing quota premium (PQP - 3mth COE average) for another 10yrs (or 5yrs for half PQP). IF you opt for 5yrs, the COE can never be renewed again, if you go for 10, the you can go in renewing indefinitely.

When COEs were introduced (80s, or early 90s?), all existing cars were given COEs. Not sure how this process worked, but a lot of old cars had COEs expiring early 2000s (so maybe it was early 90s). Hence you can see 30yr old Beetles with 8yrs COE remaining (renewed in 2000)

To work out the total monthly cost, calc the monthly loan payment, add in the montly depn (straight line from current value to PARF over remaining COE life - well in theory if you keep the car to COE expiry) and then take off the amount of loan principal repayment included in your monthly loan payment

Interest rates are low, and COEs are pretty low as well currently, so best bet would prob be to get something a year or so old, ideally japanese for resale.

[rama]

Thanks, Rob - so does this mean that a car's PARF value lasts until the very end of the last renewal?  so even after thirty years, if a car is scrapped, it will have a PARF value attached which you can get back?

Also, now that the weekend car scheme is scrapped, what implications are there in purchasing cars advertised under the weekend car classification?

Rama

[Rob]

I believe (though not sure) that the PARF is only applicable for the first COE. I renewed mine last Aug and the vehicle registration document says that  COE expires Aug 2011, but the PARF eligibility expired in 2001.  That said, if I look in the classifieds, the value of the car is now pretty much what I paid for it + the cost of the new COE.

I also believe that weekend cars can be converted to normall, but in the past (presumably before the scapping of the weekend scheme) there was no financial benefit in buying a weekend car and converting, as opposed to buying a normal one. I assume you effectively end up paying for a normal Cat COE

[This message has been edited by Rob (edited 28-02-2002).]

[BoardManager]

Yes, PARF is only applied to cars less than 10 years old from original date of registration, when they are scrapped. The idea behind this is to encourage a youthful breed of cars that will not constantly break down, and for the older generation cars in the earlier days (20 or more years ago) not cause greater pollution.

The value of the PARF is pegged at 80% of the OMV, both figures established de facto by the Land Transport Authority, based on a given formula. Rob's first point about getting some 80% residual value back when you scrap the car at the end of the 10 years is not correct - you get about 10% less each year, until you reach the 10th year. You then get about 10% back if you scrap the car. If you decide to keep the car beyond the 10th year, you lose that residual scrap value, and then pay the prevailing COE for the next period (of 5 or 10 years).

[This message has been edited by BoardManager (edited 01-03-2002).]