COE hike: Why it's a good time to sell your current car
It's not easy determining the right time to sell your car. There's this whole depreciation thing to contend with — a wrong move can potentially lead to big financial losses.
We're not actually touching on the sales process itself — that's easy enough, and we can assist you through the entire process. We're talking about figuring out the car markets, prices, and of course, the timing.
Suffering unnecessary losses
If you think about it, the vast majority of the population has been told to work from home. The government mandate aims to keep people from making unnecessary commutes to kerb the spread of a certain coronavirus.
But working from home means you do not actually need a car to commute to and from work, which incidentally, is what most people use their car for.
As the pandemic drags out, and as financial reserves run low, job security is most definitely a factor. Pay cuts may be on the horizon if this continues to cripple the global economy.
If you aren't making the most of your car, and you'd like to create a financial cushion for any eventuality, perhaps consider selling your car.
Our extensive public transportation network is enough for most of your commutes. Otherwise, you can also rely on private hire cars or taxis!
Capitalising on the recent COE hike
Generally, cars of a similar condition sell for the same price regardless of the paper value.
What this means is that your low COE car will retail for the same as a higher COE car at a used car dealership.
Why? Simply put, if the higher COE car is priced higher than the one with a lower COE value, consumers will shun the former in favour of the latter.
After all, if you're looking for a commuter car, you probably will not care too much about the paper value, but the price you got the car for!
This adjustment in prices means you can potentially sell your lower COE car for potentially more.
But there's another reason why your current car is probably going to be worth more. New cars are straying into unobtainium territory for the working class. If you are in desperate need of a car, you'll turn to a used car.
Essentially, whilst the intrinsic value of your car will not change, your current car will be worth slightly more as a knock-on effect of the COE hike.
Again — it's basic economics. Higher demand and constant supply mean each item will be simply worth more!
Why wait? Sell now!
If you are considering only buying a car once the world is back to normal, it makes sense to sell your car now.
The COE increases mean your car is worth more than it ever will be — selling it now will net you a few extra thousand dollars!
This article was first published in Motorist.