According to an article by The Straits Times, it seems that it’s out with new and in with the old. More and more drivers are now looking into older cars with revalidated Certificate of Entitlement (COE) and numbers have already soared in the past five years.
‘A COE for a new car lasts 10 years, but a car owner or buyer can choose to keep it for longer. He can do so by paying the prevailing quota premium (PQP) – an average of a COE premium over three months – to keep it for 10 years, or half that amount for a five-year extension.’
Motorists are now steering into the direction of looking at older cars because they are far more affordable than new ones. It seems like there is a growing number of people who are starting to open up to the idea of purchasing a pre-owned car and already, a number of motor traders are starting to accommodate to the rising demands. With prices of new cars obscenely high, it seems to make more logical sense economically to get a used car. In an example stated, a 2008 Toyota Corolla Altis 1.6 currently has an average depreciation of $12,000 to $14,000 annually. But the same model which is 10 years old and packaged with a five-year PQP is going for $44,000. When you do the calculations, you soon realize the benefits of eventually owning a used car. Also, it’ll be easier to get a car loan because of the high COE value.
In order to control the number of cars on the roads on our tiny island, control has to be implemented, but people are now looking into smarter and more cost-efficient ways of getting an automobile. It’s not so much about settling for less in terms of being a second, or maybe even the third owner of a car. If an older car can still as usable on the road as a new car, there’s nothing wrong in doing so! You can even take that extra money you save and use it for something else more useful.