Should I Buy, Renew, or Ditch the Car?
Six questions. One recommendation. Real 5-year cost math for your exact situation.
1. What is your current situation?
This recommendation is based on August 2026 COE prices and standard assumptions. Your actual costs may vary. Always verify with your dealer and financial advisor.
The Three Scenarios, Explained
Scenario A: Buy New
You pay the current COE premium + OMV + ARF + GST + registration + dealer margin. For a Cat A car in August 2026, that is roughly $208,000 on the road for a mid-range model.
- Full 10-year COE
- Latest safety & tech
- Full manufacturer warranty
- Highest resale value at year 5
- Highest upfront cost
- Steepest depreciation years 1–3
- Consumes TDSR for housing
- Locked into 2026 COE price
5-year TCO estimate: $142,000 (depreciation $85K + loan interest $18K + running costs $39K)
Scenario B: Renew COE
You pay the Prevailing Quota Premium (PQP) — a 3-month moving average of COE prices. In August 2026, Cat A PQP is roughly $125,000. You can renew for 5 or 10 years.
- No new car purchase needed
- Skip dealer margin & ARF
- Know your car's history
- Lower insurance (older car)
- Car will be 15 years old at end
- Rising maintenance & parts costs
- No PARF rebate at scrap
- 5-year renewal = no extension
5-year TCO estimate: $98,000 (PQP $62.5K + running costs $35.5K)
Scenario C: Ditch the Car
Sell or scrap your current car. Invest the proceeds. Use public transport, Grab, and car-sharing for mobility needs.
- Zero TDSR impact = max housing loan
- Invest $208K at 6% = $1,040/month
- No depreciation, insurance, or road tax
- Environmental benefit
- Time cost of public transport
- Family inconvenience
- Surge pricing on Grab
- Loss of autonomy
5-year net position: +$52,000 (investment returns $62K − transport costs $10K)