jaskin

Hi,

Can anyone forecast how much depreciation this car would have to lose in 3-4 years assuming that there have been no accidents on the vehicle?
What are the normal depreciation rates like in Singapore? Over in Canada it's more like 6-9K a year depending on the condition of the vehicle.

Thanks in advance
Jason

HiTMaNN

umm 6-9 k noooo only in the first 3 years after that it is a much small decraese looking at about 3 -4 k

red_rx8_red_int

Try edmunds.com true cost of ownership. They give year by year dep values, for at least the first 5 years I believe.

Gravity

10-12k first year !

Zo0oM

Let's assume the following:
Cost of car $140,000
OMV $40,000
COE $27,000
ARF is 110% of OMV which makes it $44,000 (assuming COE obtained after March 2004)

If you use it for 5 years, paper value of car is 75% of ARF + 50% of COE, and you can export the body of the car
= $33,000 + $13,500 + $12,000 (depending on condition of car)
= $58,500
Average depreciation per year is $16,300

If you use it for 10 years, PARF rebate is 50% of ARF, and you can export the body of the car
= $22,000 + $5,000(depending on condition of car)
= $27,000
Average depreciation per year is about $11,300

It's never going to be a straight line depreciation, so for depreciation for the first few years is going to be more than later years:
e.g.
Year 1: $20.0k
Year 2: $17.5k
Year 3: $15.5k
Year 4: $13.5k
Year 5: $12.0K

hoks

I believe the body is worth abit of $$ after 5 years? Say 8-10k?

Zo0oM

I was a little more optimistic and had the body value at $12k...

jaskin

Zoom thanks for helping me understand the calculations. I have a few other questions.
So after 5 yrs I would only get $58K back? Is this the estimated price if I were to sell it to the dealer? I seems to have this understanding that if you sell private you would normally fetch a higher price. Do you think selling it for say around 70K would be a possibility? How much would you get for export?

hoks

Oh...soo sorry, din notice u already included body value.

Jaskin,

Body value will the the estimated amount we get back after having the car exported. If u can find a buyer locally, typically u can get a few thousand above $58k, but it all depends on your luck though.