This write up is about my own experience, as a pre own car dealer scrap my own 2006 Honda integra. Below are some pictures of my Honda Integra:
Sadly, my Honda Integra is reaching its 10 year old mark this June 2016, having being a trusty and loyal Japanese steed, it is sad to see my companion of 10 years go… The traffic jams we been through, the coffee I spilt, the Ikea furniture I tried to squeeze in the backseat, the thrill of speeding the North South Highway and of course I can still clearly remember the first day I picked up my car from the Honda delivery center (somewhere in Mandai). How fast 10 years has gone I suppose the memories will stay with me for a long time after June 2016
Being in the automotive industry for the past decade I know clearly that we have got no choice in Singapore when our Cars reaches the 10 year mark , basically there is only two options:
1st option – Renew COE
If I were to renew COE the Pros and Cons will be as follows:
-Being only driver of this Integra, I know the full service records, it has been well taken care by me and I know do not have any major service/ accidents or repair issues before.
-Sentimental value that I won’t have to let my first 2 door coupe go.
-Perhaps it will give me a feeling that I am always young driving a 2 door coupe.
Mainly cost –
My Honda Integra was registered in 2006 June with a COE of S$13,000 (yes those were the days where a fresh graduate making monthly income of S$2000+/mth can afford his own car) and a OMV of S$ 20,763. At the end of 10 years my Rebate value is at S$11,419 – 55% of my OMV value S$20,763. If I were to renew the COE for another 5 years I would have to pay S$29,307 and S$58615 for another 10 year. The impact will be as follows:
Cost of owning the 2006 Honda Integra for the 10th to the 15th year:
PARF rebate of S$11,419 will be forfeited, add cost of COE for 5 years = 11419+ S$29,307 = S$40,726
Cost per year at S$8,145 for next 5 years
Cost of owning the 2006 Honda Integra for the 10th to the 20th year:
PARF rebate of S$11,419 will be forfeited, add cost of COE for 10 years = 11419+ S$58,614 = S$70.033,
Cost per year at S$7,003 for next 10 years
Factors for I been considering
-LOAN: If I can get loan approved for 10-20th year, usually banks are less willing to provide loan for COE renewal cars. I suppose the risk for the bank is higher, in the event if the Hirer refused or cannot pay the monthly installment, it will be more challenging for the bank to auction off a more than 10 years old car as compare to a less than 10 years old car.
-WEAR and TEAR: Although my Honda Integra has served me perfectly for the past 10 years, looking forward the chances of major repair or replacement of Gearbox might not be evadable, with a current mileage of 260,000km on the counter (Staying in Woodlands and travel a bit for work); I would say the risk is pretty high.
-ESCALATION OF ROAD TAX: The Road tax calculation for an 11 year old car is higher than any vehicles less than 10 years old.
-COST compare to a NEW car: In my Mid 30s a 4 door sedan might be more practical, I had my thrills and joy of driving a manual coupe for the past 10 years. Base on today price a Brand New Mazda 3 is priced at S$98,888 with a PARF rebate value of S$5,000 at the end of 10th year mark, the depreciation work out to be at S$9,300/year. Comparing to owning the Integra at S$8,145 per year, the cost of owning a Brand New Mazda 3 with 3 years warranty is just marginally higher.
The disadvantage clearly out weights the advantage, and it’s pretty clear that I will dispose/scrap/export my Honda Integra in June 2016… I will share with you my experience on how a Car dealer gets the best value for his own Car!
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