Category: Automotive

Truth about automotive leather maintenance
Leather treatment/conditioning is a big automotive detailing fad. In cars built in possibly 1990s, and definitely 2000s and beyond, all automotive leather have a clear coat (read: plastic) applied to a treated, dyed and artificially textured leather. The clear coat makes the leather water proof, otherwise the leather would have stained when it comes into contact with water and sweat. If you have uncoated leather products (bags, wallets, etc.) you will know what I mean.

The only exception is if you have a vintage car, or a really premium leather in an expensive car. AFAIK, even the leather in Rolls Royce are treated the same way.

There’s no need to spend good money on leather treatment/conditioners. Some leather “conditioners” offer UV protection which may help prevent light coloured leather from discolouration, but it is likely a waste of money.

Apart from long term wear and tear, the reason why leather in our cars crack and fade is largely because of poor care/maintenance. Not regularly vacuuming and cleaning the leather causes dirt and sweat (acidic) to accumulate and abrade/damage the clear coat. Once the clear coat is gone, the exposed leather underneath is left to face the environment and deteriorates quickly.

How should automotive leather be cleaned

You’ll need:
1. Two pails – one for soapy water, one for clean water.
2. A vacuum cleaner.
3. A bar soap. You can also use hand soap, etc. but so far Dettol bar soap works best for me.
4. Two cloths. One wet, one dry.
5. A brush. I use the Kiwi Shoe Brush (used for leather shoes — Army guys should be familiar with this).
Steps:
1. Vacuum to remove dirt, especially between the creases. Dirt is abrasive, so you really want to get as much out as possible.
2. Prepare a bar soap, water and a brush in the 1st pail. Wet your hands and rub some soap on your palm, then apply the soapy mix on your seats and start brushing!
3. It is important to clean one section at a time, e.g. start with the seat bottom, then proceed to seat bolsters, then proceed to seat back. Never let the dirty soapy water dry on the leather.
4. With clean water in the 2nd pail, wet a cloth, twist it so it is damp and not dripping wet, then wipe away the soapy mix. You will be surprised how dirty the cloth is. Rinse and repeat until you’ve gotten soapy water off the seat.
5. Continue cleaning the rest of the seat until you have covered the entire seat. Do a final wipe down using cloth with clean water, then dry seat with another cloth.
Extra tip: Do NOT use the brush on the steering wheel. Steering wheel leather is more delicate. Simply apply soapy water and use a cloth to wipe it down. Do this several times.

What if my leather is already worn/cracked?

Never, ever have your leather filled and resprayed. Sanding down the leather to prepare for filling and respray effectively removes the protective top coat. Leather usually cracks at the areas where it sees the most abrasion, e.g. seat bolsters, steering wheels, gear shifters. Filling and respraying in those areas will only last a short while, and once the paint wears off it will reveal the filler — usually white in color and that is really ugly.

The only way, unfortunately, is to get the leather replaced.
June 1, 2016
2016 COE trend and illogical used car prices
Why are used car prices so ridiculously high when COE prices are down? It does not make sense, or does it?

New cars are actually cheaper (in depreciation) now

A brand new VW Golf (Mk7) 1.2 TSI was going for $98.8K over the weekend. This translates to a depreciation of approximately $9.5K/yr. If you do a search for VW Golfs on the second hand market now, there’s nothing below $11K/yr, and most are averaging $12K/yr — even the Mk6 1.2 TSI ones.

A brand new Subaru Forester 2.0 (non-turbo) was also going for $116.8K. This translates to a depreciation of only $11K/yr for a brand new feature packed car. If you look at the second hand market, there’s nothing below $12K/yr for a Forester.

So what has caused used car prices to go topsy-turvy?

Here’s what I think is happening:
1. The loan curbs (min. 5 years + 40% downpayment) priced many people out of the market. The high downpayment meant that people with less cash could only buy older cars. 5 year old cars seem to be in a sweet spot.
2. People are adopting a wait-and-see attitude in hopes of further COE drops, so they are buying used cars with short lifespan to hold out for another year or two before they get a new car in 2017-2018, the predicted the “COE tsunami” years.
3. Rising interest rates and weakening global economy in general deters people from spending on cars or luxury items.
4. Old cars with 1-2 years left are being bought by rental companies turning them into private Uber fleets.
The Uber-iztaion of Singapore

In mid-2013 — when COE was some $60-70K — I bought a Subaru Impreza 1.6A with slightly over a year left of life at just below $5K/yr. If you look at the second hand market now, Imprezas are going for around $10K/yr. That’s a whopping two-fold increase. There’s practically no automatic Japanese sedans below $7K/yr right now.

This whole Uber thing took off in the last 1 year or so, i.e. some time around mid/late 2014 till present. I strongly believe this is what wiped a lot of 8-9 year old cars off the market. These old cars were the best targets for rental because the risks are low — if the car is problematic or destroyed in an accident, just scrap it.

Uber, renew or buy?

I’m being asked quite often: Should I sell my car and go public transport/Uber, or renew COE, or buy a new car now?

If you can live with public transport or Uber, why not? It will be cheaper than any form of car ownership. I’ve done my math and any basic car ownership right now would cost you somewhere between $14K-16K/yr for the car, road tax, insurance, fuel, parking, etc. If you have a $1K/mth budget for Uber, I’m sure you’ll be going places comfortably.

But if you really need the convenience of a car, and — here’s the important part — you have the cash to spare, you can either renew 10 years provided your car is in good mechanical condition, or buy a brand new car with better technology, fuel economy, warranty, etc. Used cars are just so ridiculously priced right now that it doesn’t make much sense.

If you are thinking of selling your 5-year old car and going Uber till COE drops, IMHO, now is the time.

Where will COE be headed?

I think COE will still continue to fall a little bit over the next 1-2 years, but I think it should bottom out at around $40K+. There’s a general resistance around that point, because at $40K+ the entry level Japanese / Korean cars could be going for around $70-80K and that seems comfortable for most people (and spells trouble for a lot of used car dealers).
November 16, 2015
Carculator App for Depreciation, Loan, Scrap and Rule 78

I just wanted to put this out there. This little app I built was finally approved by the Apple for the App Store last night. I am making it FREE until the end of this year. It will be on sale for S$1.28 starting 2016.

https://itunes.apple…ro/id1035354237

There are two other similar apps on the App Store going for S$1.28 but neither have as complete a feature set as this, which is a reason why I found it compelling to build the app myself. It’s difficult to be calculating depreciation especially when walking around at a dealer, so the ability to save the calculation and back-reference is very important.

You can also enter your current vehicle into it and see your scrap and loan redemption values over time. This is very valuable if you want to know how much you still owe the bank during a trade-in.

I will probably release a “Lite” version with advertising and less features in 2016, so do grab this Pro version while you can because I will likely drop the loan redemption and save functionalities in the Lite version.

All suggestions/feedbacks are welcome.

P.S. Sorry, no Android version yet.

September 27, 2015
How to buy a cheap(er) car: Will COE fall in 2015?

We have an old car in the family expiring next year, and I’m sure everybody out there is wondering the same — will COE fall?

My personal opinion is that it may fall a wee bit (Category A at around $50K) but may not fall further than that.

Vehicle population growth rate has been reduced steadily from 3% to 1.5% to 1% and now 0.5%. I believe it may be further reduced next year, and it may possibly be capped at close to 0% growth because that’s really the limits of our infrastructure and limited land space.

So if you are in such a situation, what’s the best way to get a cheaper car if you really need one?

It’s actually very simple, but there’s one catch: you’ll need to pay fully in cash (no leverage).

The trick is to buy a car with 1 year or less left on the clock, and renew when you think it’s right.

Take for example a relatively new Jan 2013 Toyota Altis selling at close to $100K. The depreciation is about $12.5K/yr.

If you bought an old Aug 2005 Toyota Altis at around $17K and renewed the COE (assuming current price at $66K), you will pay $17K + $66K = $83K for around 128 months of usage. This works out to a depreciation of only $7.8K/yr.

No doubt older cars will also come with rising road tax (capped at 150%) and rising maintenance costs, and possibly even poorer fuel economy, but with the savings of almost $5K/yr you could spend that on an engine overhaul and still have spare change for a small holiday.

If you feel that such a hefty sum of money can be better used to invest, then there’s only one way to leverage: long time owners of private properties can consider a mortgage term loan (using property as collateral) to partially finance COE renewal.

Even if interest rates rise to 3%+ it may still be cheaper than a conventional vehicle loan because a mortgage loan is a reducing interest loan while a vehicle loan is a fixed interest loan.

Business owners with overdraft facilities can consider too, if the vehicle is to be used for business purposes.

I do not encourage taking a loan on the full value of COE. Although any unused amount of COE is fully redeemable, interests can get quite hefty, especially when OD interests are around 5-6%.

December 18, 2014

How to buy a used car in Singapore

I have several friends asking me for advise on their car purchases — especially used ones because the process is more complicated, so I have decided to write a guide instead of having to repeat over and over again.

Disclaimer: Buying a car is a big financial purchase, so there are many variables to consider. You must do your own due diligence regardless of my advices/recommendations.

Know your needs

Ask yourself these questions:

Do you really need a car?
What kind of mileage do you do every month? Are you a going to drive a lot?
Do you need a 7-seater for a big family?
Do you often carry large and tall items?
Will you drive into Malaysia?
Will you be sharing with your spouse or siblings?
What other uses do you need the car for?

All these decisions will affect the type of car you purchase. For example:

A travelling salesman may want a fuel economical and reliable car to reduce running costs.
A recreational cyclist with foldable bikes may opt for a hatchback or an SUV to fit the bikes.
A big family of 7 may want an MPV instead.
A regular traveller to Malaysia may want to avoid cars popular for theft, like Hondas and Toyotas.
A person sharing with his/her spouse/siblings may need to consider their needs and budget.
A single and lonely man may want a convertible Mini Cooper to impress the ladies at the club.

Know your budget

Hint: At least $1,000/month.

A car is a big purchase, so setting a budget is important. As a general rule, the overall expenses of car ownership in Singapore starts around a minimum of $1,000/month.

Typical expenses breakdown

Depreciation of a typical bread and butter car (as of 2014)	$6,000/yr or $500/mth
Insurance of a first time buyer with 0% no-claims discount (NCD)	$2,400/yr or $200/mth
Fuel cost of travelling approx 2,000km/month, 12km/l @ $1.75/l	$292/mth
Parking in HDB sheltered carparks	$95/mth
Road tax for a 1,500cc (1.5L) petrol car	$686/yr or $57/mth
General servicing of vehicle every 10,000 kms	$600/yr or $50/mth
ERP (tolls), parking at the office, etc.	$100 to $400/mth
Totals	$1,294/mth onwards

Other costs to consider

It’s easy to forget that these are also daily costs of a driving a car in Singapore: –

Parking at home, at work, at shopping malls, at parent’s or friend’s
ERP in both directions of travel
Traffic and parking offenses
In-car camera — an almost mandatory accessory in cars these days
Battery and tyre replacement every 2-3 years or so (rubber gets hard, so do replace them even if they are not worn)
Other incidentals like tyre punctures, especially if you work near construction zones
Unfortunate incidents such as accidents, vandalism, hit-and-run and associated repair costs
Car wash/grooming/beautification/”zhng”

Understand the tax structure

Additional Registration Fee (ARF)

Understanding how the ARF tax works is the key to understanding how to calculate the straight-line depreciation for a vehicle in Singapore.

Cars less than 10 years old are usually called PARF cars because they carry a Preferential ARF (PARF) value. PARF value is a percentage of the ARF (right now it is 50%) that is given back to you if you dispose the car at the end of 10 years. This is to encourage purchase of newer and more green/efficient vehicles.
Cars that are 10 years or older are usually called COE cars because they no longer carry a PARF value and only carry a COE value.

Certificate of Entitlement (COE)

Most cars in Singapore are sold with COE unless stated by the seller. If you see the terms “body only” or “w/o COE” then it would mean the price does not include COE.

Used Import Cars

There are also used import cars where the registration date of the car starts before the COE hence have more complicated depreciation calculations; I would recommend a first time buyer to avoid these. Used Imports are typical with high-end sports cars, as the savings can be significant.

There’s simply too much to cover here, so please Google and read up on these terms: OMV, ARF, PARF, PARF rebate and COE. A very detailed summary is available on LTA’s website but may be too confusing for a first timer.

Work your sums

Hopefully a table is easier to digest. Just add these all up.

	PARF cars	COE cars
Annual depreciation formula	(Purchase Price – Min. PARF) / (No. of months of COE remaining / 12)	Purchase Price / (No. of months of COE remaining / 12)
Road tax	Same every year	Increases 10% every year, maxed out at 150% (at year 15)
Insurance	Comprehensive or 3rd party (only if not under loan) cover	Mostly 3rd party cover only, i.e. does not cover your own car in an event of an accident; there are some insurers that will still provide comprehensive cover for cars between 10 to 15 years of age.
Financing	Max. 5 years, or up to remaining lifespan of COE; interest rates between 1.88-2.88%	Only available for cars less than 15 years of age; otherwise usually financed using personal term loans with very high interest rates (4-5%)
Maintenance costs	Increases with car age; big ticket repairs usually starts above 5 years or 100,000 kms	Same as PARF cars, increases with car age, but COE cars are even older, so will run a higher bill if anything breaks; parts may also be hard to find depending on the model of the car
Fuel economy	Similar to maintenance costs, fuel economy tends to get a little poorer when the car ages, especially if not maintained properly	Similar to maintenance costs, fuel economy tends to get poorer with age, but cars built before 2000 have older engine technologies that yield even poorer fuel economy
Safety	Generally better since most cars built after 2004 should have at least an airbag and ABS	Generally poorer as safety technologies improved rapidly only in the last decade

Things to watch out for at the delaer

Unlike new cars which usually come with a 3 or 5 year warranty, used cars dealers can be dodgy. Here’s some pointers when hunting for a used car: –

Don’t trust the mileage. Mileage tampering is possible and is prevalent.
Don’t trust the paintwork. Most dealers get a cheap single-coat respray done before cars hit the showroom.
Look beyond the paintwork. A car is a mechanical device and a beautiful car that doesn’t move belongs to the museum.
Take a careful look at the interior. Interiors are expensive to replace or repair, and will tell a story of its use/care/abuse.
Switch off the radio during a test drive. Pay attention to knocking, grinding, squealing or other weird noises when driving; red flag if dealer does not allow you to test drive.
Pay a “surprise” visit. Don’t inform the dealer that you are coming; sometimes vehicles may exhibit issues when cold (especially transmission issues), so if you tell the dealer in advance they may warm up the car before you arrive.
Minor issues are okay, but don’t count on the dealer making repairs for you. You will be better off asking for a discount and then getting a trusted mechanic to fix minor gremlins.
Be sure to ask about the loan rates, the financial institution, the payment process, admin fees (aheem, salesman commission), insurance and road tax; red flag if they offer high interest rates for “in-house” loans, high admin fees (above $500).
Have an experienced person help check the car for you, or at minimum have it inspected for accidents and visible issues at STA — they have laser chassis alignment measurement machines.
Usually the buyer pays for inspection and a deposit to the dealer should not be required; red flag if dealer insists you place a big deposit before sending the car for inspection.
Make sure you work your sums carefully, including the downpayment, financing, transfer fees, insurance, and even road tax.
Take your time and shop around, don’t be swayed by sweet talking dealers; a car is a big purchase and you should shop carefully.

Direct owner sale

I personally prefer direct owner sales, since I will get to really know the car’s history from the owner. Be wary though, there are many dealers masquerading as direct owners to circumvent the Lemon Law introduced in 2012. One way to tell is that they are selling on behalf of friends/family member/relatives, do not have maintenance records of the vehicle and that they also offer to help with the loan and insurance paperwork. It may be a sign that the car has some serious issue(s).

The buyer will have to source their own insurance and loan in a typical direct owner sale, but it is not difficult these days as there are insurers and banks that offer direct applications online. The whole process may be too much cover here, and I hope to cover it in a separate article someday.

Final words

You’ll see that a car will cost over $1,000 a month to run in Singapore. I’m sure this will turn many potential car buyers away, but if you really need a car and you can well afford it, then do consider one as it brings significant improvement to your quality of life but do not rush into the purchase.

October 30, 2014

Life with a Diesel Car in Singapore

When it comes to technology, I’m usually an early adopter and there’s no exception when it comes to cars.

When I saw a resale BMW 520d (internal code name F10) for almost $20K below what its petrol siblings were asking for on the market, I jumped on it right away. The car is well optioned with multi-contour ventilated seats, 4-zone air-conditioning, premium hi-fi and the M-sport bodykit. These factory options aren’t cheap, which explains why the car also has an extremely high OMV value.

I was sufficiently warned of the NVH (Noise, Vibration and Harshness) of diesels, so when I test drove the car it exceeded my expectations. Still, I knew I was venturing into uncharted waters, but the tremendous torque and potential fuel savings beckoned and I took the plunge.

I thought this would be a fantastic comparison because I had the same car but with a different engine. The old car had the legendary BMW inline-6 2.5L naturally-aspirated engine, code-named N52 (badged 523i). This new car has the BMW inline-4 2.0L variable geometry turbocharged diesel, code-named N47. It’s good to note that BMW enthusiasts swear by the N52 — some refuse to buy the car if it does not come with an inline-6.

Both are small engines considering the massive weight of the car (1.7+ tonnes). The diesel is slightly heavier (~50kgs). Both cars have the same transmission (ZF 8HP).

BMW N47B20 engine in the F10 520d is a promising little motor with a BSFC of 198g/kWh.

6 months down the road, what are my thoughts? No regrets — the diesel engine pulls effortlessly from just above idle to 4,000+ rpms. The massive 350Nm of torque is fantastic for city driving and it is no slouch on the highway either; I’d easily hit 110kph without even noticing that I had to configure a speed alert to warn me.

The final drive of the 520d is also taller than the 523i thanks to the massive low-end torque. The car cruises on gear #7 well under 2,000 rpms at the legal Singapore speed limit of 90kph; there’s 8 gears on this tranny so it will also do 110kph under 2,000 rpms on the NSHW. This low-revving is probably why the engine is barely audible on the highway.

Fuel economy? I averaged 13km/l (over the last few months) with fairly spirited driving, or about 800 kilometers on a tank of gas. I refuel my car once every two weeks now (was weekly). Bear in mind my engine hasn’t really broken in yet; it’s still under 10,000 kms and I am starting to get better fuel economy as the months go by.

On good days like today the fuel economy can reach 15km/l; notice the low average speed of 41km/h. This was just a drive out for lunch and a short drive back home (no jams).

I only drive on average 1,500 kms per month and my monthly fuel bills have already shrunk from $330-350 (Esso 8000) to $170-180 (Esso Diesel). My daily commute is around 60-70% city, 30-40% highway.

Although I pay more for road tax (about $400 more per annum), the savings in fuel more than makes up for it.

So what are the drawbacks of driving a diesel?

There’s definitely more NVH as compared to BMW’s creamy smooth Inline-6 engine. I do also miss the aural pleasure from my old car, but for daily driving the torque of the diesel and the way it pulls away from cars effortlessly with no drama wins me over.

I also cannot refuel in Malaysia (yet) because they do not yet have Euro 5 diesel (currently Euro 2M), although a full tank will likely bring me to KL and back. I heard some mixing shouldn’t do much harm. Note that the engine can handle any type of diesel, it’s just the emissions systems, particularly the Diesel Particulate Filter (DPF) that have trouble with lower grade diesel. Malaysian 520ds do not have DPFs to work around their fuel problem.

Unfortunately I can only fill up Euro 5 diesel and it is not available across the causeway yet. Not even knife brand cooking oil can be used — it states clearly NO BIODIESEL.

I do also get surprised looks at the petrol kiosk when I stick the diesel nozzle into my car, and occasionally some weird stares as I drive past unsuspecting people; I guess it must be the ticking of the diesel engine that people relate taxis to.

Servicing costs me $30-40 more, primarily because my oil filter is uncommon and costs more. I use the same type of engine oil as other modern BMW petrols (BMW approved LL-04 such as Mobil-1 0W-40 ESP). As a plus, I do not have spark plugs, so that may equal out the extra costs of the oil filter. Modern BMWs use pretty expensive platinum sparks that should be changed every 50,000-60,000 kms or so.

Driving the diesel 520d has been an absolute joy and I think it is the way to go — at least for the next 5 years. Alternative energies/technologies such as compressed natural gas (CNG), hybrid electric, fully electric, or fuel cell have some ways to go and the present infrastructure is lacking to support these technologies. (Sidenote: The BMW i3 seems pretty promising if you live in a landed property.)

Remember that my car is over 1.7 tonnes unladen, and weight is a major contributing factor to fuel economy. If you buy a smaller diesel like the Volkswagen Touran 1.6 TDI, you will likely achieve 16-18km/l without breaking a sweat.

I really hope more car owners in Singapore will switch to diesel. For the same amount of fuel, diesel is almost twice as efficient — we could keep fossil fuels around maybe just a little bit longer.

Read my follow up article after two years of driving the BMW 520d.

August 7, 2014