clean emission rebate

[Kreezgo]

My SE also called me yest asking me to go back n re-sign some docs for this rebate.. So net benefit is onli $2.5k cash rebate? I din ask my SE I tot is $5k

[Applezoo]

funny...y 5k reduction in car price result in only 2.5k net discount?  will have to wait for se to clarify. congrats on getting ur ride on 4th jan. mine still no news yet...

[Kreezgo]

Juz confirmed w my SE she say i will be getting $5k rebate leh meaning my new car price is onli $188,888 instead of $193,888

[DHS55]

Net benefit is 2.5k though rebate is 5k. My SE told me is because omv will drop around 5 k. Hence when scrap you get 2.5k less (50%)

[Applezoo]

Net benefit is 2.5k though rebate is 5k. My SE told me is because omv will drop around 5 k. Hence when scrap you get 2.5k less (50%)

 doesnt sound rite. this rebate is from the arf. arf is taken as 100% of omv. y would the omv drop jus becos the govt reduce the arf? must clarify wif my se when he calls.

[Villian S]

Correct me if I am wrong.

Normally you will get back 50% of the ARF paid when you scrap your car at end of 10 years. As such, when you pay less, in this case 5k where it is from the ARF, you will get back less amount, ie 50% of 5k = 2.5k.

Let's say that OMV is 50k and ARF in 50k. Before 1st Jan 2013 register, you will get back ~50% of ARF = 25k.

If registered on 1st jan, there will be a 5k rebate so ARF is 45k while OMV remains. At 10 year scrap, you will get back ~50% of ARF = 22.5k.

Meaning at the face of it, you will benefit 5k-2.5k=2.5k.

However, suppose that you pay no down payment and assuming the car cost 188888 and interest is 1.88%.

188888 vs 183888 (with rebate 5k)

For 188888, you will end up paying 224399 with interest.

For 183888, you will pay 218459. Difference is 5940.

Taking into account the difference in scrap value of 2500, you will pay 3440 lesser. And taking into account time value of money(shall not bore you with all the calculations), it definitely pays to wait awhile more and register on 1 jan if you dun need the car urgently.

Btw rebate is taken from ARF and not OMV.

[DHS55]

I think villain's explanation is clearer, should be 50% of ARF when scrap. SE said similar to CNG scheme.

[thehorse]

Villian's explanation is crystal clear.

With the time value of money even assuming a low interest rate environment, it's preferable to get the rebate upfront.

[Applezoo]

got it. tks for the clarification.