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Want to keep car ownership costs low? Here are five car models that are perfect to be given a new lease of life with a COE renewal.
Category: Car Ownership Advice
Keeping an old car is not easy, and yes, there will be many cons to keeping an older vehicle on the road here in Singapore (which you can read about here). But, COE renewal on your car could still be a sensible option for those that want to keep their motoring costs to a minimum. We look at five tasty options which are good bets to keep running here in Singapore, after their first 10 years have run their course.
But first, how do you determine what's a good car for COE renewal?
Factors to consider when choosing a car for COE renewal:
1. PARF rebate
When you deregister a car in Singapore towards the end of its COE, you will be eligible for a PARF rebate of 50% of the ARF paid (the ARF is derived from the car's Open Market Value). When you choose to renew the COE, you will be forfeiting this sum of money, effectively adding to the depreciation of the car.
2. Engine capacity
The road tax of cars in Singapore is derived from the engine capacity. Additionally, cars that are over 10 years of age is subjected to an increasing surcharge of 10% per annum up till a maximum of 50% on the 15th year (effectively 150% of the car's original road tax amount). It will make little sense to renew the COE of a car with 6,000cc.
3. Parts availability
Parts availability can be a headache for older cars that have long stopped being produced, the problem gets worse with rare and uncommon cars. Hence renewing the COE of a common car with great parts support will make more sense here.
Much like choosing what new car to buy, the car must be good. The lower cost of a COE-renewed car can also mean that you will be able to enjoy a car that was much more expensive or when new. Imagine being able to drive a luxurious European sedan with an annual depreciation that is less than $10,000!
Calculations are based on the following:
July Category A COE PQP: $46,896
Renew 5 Years Category A COE (50% of PQP): $23,448
July Category B COE PQP: $56,100
Renew 5 Years Category B COE (50% of PQP): $28,050