COE hitting the roof

[denzelwng4]

expect COE's to hit $100k soon....

;(

arrgghhh....i take bus, cab and mrt lah....

 

[giantcanopy]

:bsmilie:

then how will you be able to differentiate the Rich from the Poor if there's no COE and everyone can buy a mercedes benz? :bsmilie:

The loaded will buy Ferraris, Lamborghinis, Maseratis ..

 

[Big Kahuna]

There is always two side of the coin, COE expensive all kpkb, COE cheap.....too many cars on the road.....traffic jam and no parking space people wIll curse and swear.....buy more mrt and busses people also condemn....gov should encourage people stay at home n don't go out to cut down the travelling need

 

[Big Kahuna]

The loaded will buy Ferraris, Lamborghinis, Maseratis ..

The super loaded one will buy one of this and crash it

 

[Fudgecakes]

The super loaded one will buy one of this and crash it

 

[kei1309]

There is always two side of the coin, COE expensive all kpkb, COE cheap.....too many cars on the road.....traffic jam and no parking space people wIll curse and swear.....buy more mrt and busses people also condemn....gov should encourage people stay at home n don't go out to cut down the travelling need

How true

 

[edutilos-]

CNA got Talking Point on COE now at 8pm on 24 Jul 2012. Now it is hitting new highs.

You dug up an old thread. :bsmilie:

 

[BBTM]

I rmb COE was abt 100k + and then drop over the years. So, it will be repeating itself once again. Maybe 20 yrs later, same thread will surface . 10 yrs down the road, COE MIGHT be 10k range again, haha!

 

[giantcanopy]

I rmb COE was abt 100k + and then drop over the years. So, it will be repeating itself once again. Maybe 20 yrs later, same thread will surface . 10 yrs down the road, COE MIGHT be 10k range again, haha!

Ya this COE thread is always relevant until the whole system gets revamped.

 

[BarneyChihan]

i remember the good old days when COE for bikes was $1. when i got my current bike last year, i paid almost $2.4k for just the COE alone

 

[milez]

I rmb COE was abt 100k + and then drop over the years. So, it will be repeating itself once again. Maybe 20 yrs later, same thread will surface . 10 yrs down the road, COE MIGHT be 10k range again, haha!

COE topped 100k in 1994. That's when property was at its highest the last cycle. Then it came down because of 2 factors,
1. 1997 Asian financial crisis
2. Gov restrict transfer of cat 1, 2 and 3 COE (at that time not cat A & B), to curb speculation as people were booking new cars and sell them off once delivered ( almost the same as condo) to hedge against COE spiralling due to COE premium keep increasing therefore risk is low and guarantee make money.

This round the COE spiral upwards because of quota cut, increase in population and generally good economy. Also, the new immigrant be it PR or employment pass holders are generally very rich. They can afford way more than what locals can. So they are outbidding the locals. But as with any theory, the main culprit is still the cut in quota.

Will we see the demand for cars easing off? Well I do not see the easing off in the near future... At least the next 5 years without any tweak in policy. Unless, the is a financial crisis, or mass exodus of FT, or increase in quota. Other than that, I see COE staying above and beyond 100k mark.

 

[Bukitimah]

What goes up will have to comes down. It is just when is the next cycle. Of course with inflation, the next low may not be the last low simply because your $ shrunk!

Someone said you should always be in debt to survive today's economy. Well, I want to believe you need to work your own sum right. Chasing after $ will never bring you happiness and satisfaction. Know your worth and be contented.

 

[Miao]

The finiancially strong no matter how high COE they can afford. They are out of this equation

The middle and lower class is more budget consious. So these class of buyers, usually in Cat A is further squeezed by:

- taxi
- turbo charged BMW, Mercedes, VW, Volvo also now below 1600cc

What happens is this budget concious class if they own a car now will stretched till close to 10 years (or a time should COE drop drastically not likley). This means the car they driving now will be AT LEAST 2 versions behind the same cars models sold in other Asian countries.

When tourists from these country come to Singapore... they will see is:

- Singaporeans driving either real out of production models (Altis, CIVICs, JAZZ, Latio, Sunny - which is already happening now)
- another class driving the latest model NEW luxury cars

The image we will give them is bulk of Singaporeans is "poor" (seeing the type of cars being driven in a city-state that has a GDP among the world highest - irony right ?)

I don't like to say this but I do used to "scorn" old Malaysian cars rusty, paintwork gone-case Proton SAGA, WIRA still got people drive one... now is happening to us. It's very sad :mad2:

I cant wait to see this happening .. then our 1st class image will not be so 1st class after all .. by then would we get any incentive if we revamp our old car into new car ... ?

 

[La Fontaine]

In the last election, housing and public transport were some of the issues.

In the next election, COE could be an issue. Not sure if something could be done before the election.

 

[BBTM]

Those who suffers from this hire will be the car saleman. All depend on the commission. Pity them if no one willing to change car. I did a rough calculation, 1.1k monthly if u getting a car that cost 150k n u down payment 50k. There4, unless u got 3k extra after other payment, then u can consider a car else can forget it.

 

[milez]

Those who suffers from this hire will be the car saleman. All depend on the commission. Pity them if no one willing to change car. I did a rough calculation, 1.1k monthly if u getting a car that cost 150k n u down payment 50k. There4, unless u got 3k extra after other payment, then u can consider a car else can forget it.

Car salesman, car sales industry at large are affected by the reduction in quota. When car distributors can sell 300-500 car for each bidding (every 2 weeks approx), they can price the car more competitively and reduce their margin. So the affordability of cars, on top of low COE, is even more pronounced.
Take for example a Toyota Corolla Altis with OMV of $18k. It used to be sold at $65k with $15k COE with a profit margin of about $10k.
Today the same car sells for $134k with the same OMV, ... Even with $65k COE, the profit margin they want is now $25-30k because of lower volume sales. Thereby pushing the car price above and beyond the affordability of even the upper middle class.
So, even if COE comes down if quota does not increase, we won't see the car price we once saw just 3 years ago.

 

[BBTM]

Car salesman, car sales industry at large are affected by the reduction in quota. When car distributors can sell 300-500 car for each bidding (every 2 weeks approx), they can price the car more competitively and reduce their margin. So the affordability of cars, on top of low COE, is even more pronounced.
Take for example a Toyota Corolla Altis with OMV of $18k. It used to be sold at $65k with $15k COE with a profit margin of about $10k.
Today the same car sells for $134k with the same OMV, ... Even with $65k COE, the profit margin they want is now $25-30k because of lower volume sales. Thereby pushing the car price above and beyond the affordability of even the upper middle class.
So, even if COE comes down if quota does not increase, we won't see the car price we once saw just 3 years ago.

I was about to get a Swift when it's 40k but my sister told me dont own a car as I hardly use. Now COE shoots up, the dream of owning a 1.5L also gone. Anyway, maintenance of car, petrol etc. also quite taxing on my low paid job. Time to sell .... haha!

 

[Shizuma]

The most worrying concern on rising COE is that it raises costs to merchants and businesses (as brought up earlier by another member)

When costs increase, businesses and merchants can pass on the costs to their customers (according to the price-elasticity)
Basic necessities are among the most price-inelastic goods.

Should the price of basic essential goods increase, the less well to do in society will be impacted more, as the increase in prices forms a larger % of their income.

COE is directly discriminating against the less well to do (can't buy car) and also indirectly increasing their burden by increasing prices everywhere.

 

[La Fontaine]

Just back from the car service centre at Leng Kee. Seems to be much more crowded than before. Folks are holding on to their older cars. And the showroom was like swopping flies. And spare parts price seems to be higher too.

 

[milez]

The most worrying concern on rising COE is that it raises costs to merchants and businesses (as brought up earlier by another member)

When costs increase, businesses and merchants can pass on the costs to their customers (according to the price-elasticity)
Basic necessities are among the most price-inelastic goods.

Should the price of basic essential goods increase, the less well to do in society will be impacted more, as the increase in prices forms a larger % of their income.

COE is directly discriminating against the less well to do (can't buy car) and also indirectly increasing their burden by increasing prices everywhere.

Would you prefer to allow the low income groups to buy cars and put even more pressure on their daily needs? It's not cheap to maintain a car and to even drive it. So I think it's better for low income groups to focus on their daily needs and take public transport.