COE prices during the 2014 to 2016 period were exorbitant, if you own a car from then, it might be the wiser choice to switch that out to a brand new ride. Find out why.
If you have been driving for a while, you would have noticed that the recent COE prices while not the lowest, are actually substantially lower than it was a couple of years back. That’s right, we are talking about the period from 2014 to 2016, COE prices soared to as high as $77,400 for CAT A and $84,504 for CAT B in 2014 April!
As cars are assets that depreciate over time, a higher COE paid translates directly to a higher depreciation suffered every year. Hence, it is a wise choice for you to cut the losses and switch over to an option with lower depreciation, should that opportunity presents itself.
Why only cars bought within this period?
From the chart, you can see that COE prices were extremely high from 2014 to 2016. Around 5 years ago, in March 2014, the COE price for CAT A and CAT B were $76,999 and $80,710 respectively. Comparatively, the COE price on 6 March 2019 is less than half of what it was, at $26,309 and $36,961 respectively.
Such high COE prices will drive up the depreciation figures of your car, for cars bought in 2014, the depreciation of the CAT A COE itself (not considering the cost of the car!) is $7,699 a year, which is $599 more than the depreciation of a brand new Toyota Vios 1.5 E now!
Why go through the trouble? Is it really worth it?
The short answer is YES! But don’t just take our word for it, let’s take a look at the facts. From the table above, you can see the benefits that you stand to get by switching from a 2015 Toyota Altis to a current day equivalent – a 2019 Toyota Altis 1.6.
Buying an Altis in 2015, with a maximum loan taken will result in monthly instalments of $1277. By selling the car on sgCarMart Quotz, an online car auction platform, you stand to recoup $57,800 as can be seen on the website. This means that after paying the down payment on the brand new 2019 Altis, you will get to keep $15,224.60, and you will also enjoy a lower monthly instalment at $915.
From this simple act, you get to free up your finances, lighten your monthly financial baggage and enjoy a spanking new car, at the same time, the fresh COE also means you get to drive the car for 10 more years! Switching up to a new car in this case is absolutely a no-brainer!
What do you stand to gain by changing to a new car?
With a new car, there are plenty of perks, for one, the new car will come with a warranty, meaning that you will not need to worry about mechanical issues, unlike driving an ageing car. Furthermore, many dealers these days throw in free servicing packages as well, and that means even more savings!
Brand new cars tend to be more reliable as it hasn’t been worn down by the wear and tear from day-to-day usage, they will also be packed with newer technology, offering a higher level of safety, convenience and ease of usage as compared to a five years old car.
Prime time to buy a new car
You might be wondering, why now? For one, the current COE price is at one of its lowest point for the past couple of years. Secondly, from the look of things, COE is poised to rise in the near future, in fact it has already been steadily increasing since the last few biddings.
If you wait too long and miss the proverbial ship, you will be stuck with an old car that depreciates excessively, and the worst part? If your car was from 2014, you only have five years more to go before you are forced to buy another car, and if the COE has soared once again, you will be stuck in the same vicious cycle, paying through the nose for that piece of paper.
Take that first step
If you own a car from the 2014 to 2016 period that has an insanely expensive COE, chances are, you will stand to gain by switching out to a new car.
If your car fits the bill, wait no longer! You should get rid of the old car and switch out to a brand new one. You can sell your car by bidding through Quotz, not only is it an extremely easy process, you will also get much more for your car! By selling higher, you can have a larger budget to spend on a sweet new ride.
Why should you opt for Quotz? Apart from the simplified process, Quotz also offers flexible hand-over, so you can set the handover at a date after you have received your new car. Selling with Quotz will usually allow you to sell at a price of $3000 above the trade-in value of your car, you can always enquire for the trade in price before heading over to Quotz for a no-obligation auction before making your decision.