SG: More purchasing cars close to COE expiry

As COE prices are expected to further fall over the next couple of years, many are purchasing eight to nine year old cars to tide them over until the prices actually fall. In 2014, a standard close to end of life car had an annual depreciation of less than $10,000, which is the price of the car, deducted from the scrap rebate divided by the number of years before the COE expires. With demand being driven up, the purchase prices have gone up with it, and thus, depreciation can now reach upwards of $14,000 yearly. However, buyers waiting for the drop in COE prices aren’t the only ones driving up demand of said cars; firms such as Uber are also acquiring older machinery to rent out to their drivers. Loan curbs have also driven motorists to purchase older vehicles. Pictures used for illustration purposes only.