Originally posted by nivlac9:
Hi Guys.... Need some help in calculating the scrap value of a car.
If I would to purchase a Jun 2001 Car with an OMV of $27k, PARF of $15.9K and COE of $30K. And use it for 2 years 3 mths scaping it before it hits 5years to get the 130% rebate.
How much would i get back?
My understanding is that I multiply my PARF * 130% + 50% of my COE (Cos 5 years) = $35.67K < Is this my scrap value? All i get ?
If thats the case? Then my depreciation for 2yrs 3mths is approx $12K!!!! per year!!!!! Doesnt make any sense. However, if i would to use the car till its COE runs out my depreication would only be approx $6K per year.
Very very puzzled... could someone enlighten me on this? My calculations could be wrong....
Thanx.
Your calculation is right except it's OMV * 130% and not PARF. Your depreciation is high for 2 yrs plus becoz you bought at high price. The idea is to push the price as close to paper as possible, or dun go thru dealer.
And there may be additional money back from the car body (depends on make and year). For examples, the dealers say the 2001-2003 Sunny fetches 6000-8000 for the body. Dunno if true, maybe tio smoke...