Changing cars? - COE prices 19-Oct 2011
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Re: Changing cars? - COE prices 19-Oct 2011
if Coe is $1. It is still one car registered. 99% of Coe allocated for each bidding is always fully taken up. So as long as Coe quota is not cut to below replacement, the vehicle population will remain the same or increase. Unless the quota allowed is not taken up every time, the car population growth will remain, and the COE premiums will drop to $1 each time. What is the probability of that happening? I'd say ZERO. When the COE is $1, cars with low OMVs will flood the market.
if Coe is $1. It is still one car registered. 99% of Coe allocated for each bidding is always fully taken up. So as long as Coe quota is not cut to below replacement, the vehicle population will remain the same or increase. Unless the quota allowed is not taken up every time, the car population growth will remain, and the COE premiums will drop to $1 each time. What is the probability of that happening? I'd say ZERO. When the COE is $1, cars with low OMVs will flood the market.
Re: Changing cars? - COE prices 19-Oct 2011
The only time not all COEs will be taken up is when the value hits the roof, which is why I said $200k ridiculous type. Bidding should not be the way as leftover COEs will then be brought over to the next exercise and you get lower values and end up every COE is snapped up.
The only time not all COEs will be taken up is when the value hits the roof, which is why I said $200k ridiculous type. Bidding should not be the way as leftover COEs will then be brought over to the next exercise and you get lower values and end up every COE is snapped up.
Re: Changing cars? - COE prices 19-Oct 2011
yes paying by cash may affect alot. but i think right now with the controlled quotas coming down. 75k is peanuts. im saying we hv enuf ppl who can well afford to pay cash at this level. maybe 200k...maybe 100+. paying cash will surely hurt more the higher this runs.
yes paying by cash may affect alot. but i think right now with the controlled quotas coming down. 75k is peanuts. im saying we hv enuf ppl who can well afford to pay cash at this level. maybe 200k...maybe 100+. paying cash will surely hurt more the higher this runs.
wt_know
Well-Known Member
Re: Changing cars? - COE prices 19-Oct 2011
i would rather suggest 40% downpayment, 60% loan @ max 7 years.
moderate demand and also "enforce" proper financial planning.
zero downpayment with 10 years loan is stupid and make things worse for car owner especially those who are not finiancial savvy or those who gungho drive first worry later type
i would rather suggest 40% downpayment, 60% loan @ max 7 years.
moderate demand and also "enforce" proper financial planning.
zero downpayment with 10 years loan is stupid and make things worse for car owner especially those who are not finiancial savvy or those who gungho drive first worry later type
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Re: Changing cars? - COE prices 19-Oct 2011
Shanghai has had a quota system since 1986, before we had COEs. It sets the number of permits - and ballots them for a fixed sum, regardless of demand.
Any other way is just profiteering. The LTA should stop talking about "market forces" as long as it's messing about with the rules.
Shanghai has had a quota system since 1986, before we had COEs. It sets the number of permits - and ballots them for a fixed sum, regardless of demand.
Any other way is just profiteering. The LTA should stop talking about "market forces" as long as it's messing about with the rules.
Re: Changing cars? - COE prices 19-Oct 2011
COE all along has been money making channel for LTA..
I have a friend who is a car dealer, it's not like they want to bid high, but they are also binded by sales contract that they must deliver the car, so if they die die must secure COE, the only way is UP the price to secure lor, ends up car dealer profit margin down to deliver car.... new buyers comes in are affected by the increased COE prices.. who to blame?
kenntona;694291 said:
COE all along has been money making channel for LTA..
I have a friend who is a car dealer, it's not like they want to bid high, but they are also binded by sales contract that they must deliver the car, so if they die die must secure COE, the only way is UP the price to secure lor, ends up car dealer profit margin down to deliver car.... new buyers comes in are affected by the increased COE prices.. who to blame?
Re: Changing cars? - COE prices 19-Oct 2011
This in other words translates to those who are cash enough and able to pay the COE in full. Pretty good idea but its not going to make the same money for the Govt as much less people will be able to fork out a lumpsum. This would definitely slow down car population more intensely over a shorter time. The current one of high COE prices is more of a waiting game. Once you sink your lumpsum cash into COE, its already a sunk cost.
kenntona;694267 said:
This in other words translates to those who are cash enough and able to pay the COE in full. Pretty good idea but its not going to make the same money for the Govt as much less people will be able to fork out a lumpsum. This would definitely slow down car population more intensely over a shorter time. The current one of high COE prices is more of a waiting game. Once you sink your lumpsum cash into COE, its already a sunk cost.
Re: Changing cars? - COE prices 19-Oct 2011
just by speculating COE, dealers make alot money! anyway got money buy car no money squeeze MRT..
till ERP pay-as-you-drive system come out... govt give u cars u also dun drive. i think come out carpark $10, 1km $5....
just by speculating COE, dealers make alot money! anyway got money buy car no money squeeze MRT..
till ERP pay-as-you-drive system come out... govt give u cars u also dun drive. i think come out carpark $10, 1km $5....
delrosa81
Well-Known Member
Re: Changing cars? - COE prices 19-Oct 2011
True but government will never implement this. Simply bcos majority of singaporeans wan to get a car, but cannot afford will blame government. Will cause alot of unhappiness. Will lose votes for next election so cannot implement. Alot of whiners when they cannot afford something, they blame everyone else except themselves.
Anyways I do agree, make coe to be paid in cash only and car population will stop growing or even start shrinking.
kenntona;694267 said:
True but government will never implement this. Simply bcos majority of singaporeans wan to get a car, but cannot afford will blame government. Will cause alot of unhappiness. Will lose votes for next election so cannot implement. Alot of whiners when they cannot afford something, they blame everyone else except themselves.
Anyways I do agree, make coe to be paid in cash only and car population will stop growing or even start shrinking.
DrK
Well-Known Member
Re: Changing cars? - COE prices 19-Oct 2011
To make a policy work thoroughly, a draconian measure is necessary. Our govt is not new to this. Compulsory increase in CPF withdrawal age limit, FT influx etc are good examples of 'if govt really want to do it, it will not give a hoot what the citizens think'. Anything else like "I'm sorry", "we will review", "we want to help you with car ownership" etc at pre-election are just sugar coats.
If they are sincere about reduction in car population, they must definitely had thought that paying a chunk of the COE in cash is a viable option. Why not treat cars like properties? Meaning mandatory of X% in cash as downpayment, 2nd or 3rd car in the same name attract more percentage downpayment in cash, penalty clauses if car loans are pre-paid (i.e. if you sell before 5 yr). In this way, govt can also keep our record-high inflation rate in check when the buying mania of cars cease. This is a socially optimal plan.
But no. Why would they want to kill this golden goose that bring in fat money to their wallet? This is a country that runs with fiscal interest first and social interest last. If you ask me, COE is just a big 10-year old scam. The only difference back then and now is that we drivers and citizens are oiling the cogwheels of this money-spinning mechanism even better due to our unrelenting thirst for cars. We are trapped in this govt's play, and will be trapped for a long time if we do not start thinking otherwise.
delrosa81;694475 said:
To make a policy work thoroughly, a draconian measure is necessary. Our govt is not new to this. Compulsory increase in CPF withdrawal age limit, FT influx etc are good examples of 'if govt really want to do it, it will not give a hoot what the citizens think'. Anything else like "I'm sorry", "we will review", "we want to help you with car ownership" etc at pre-election are just sugar coats.
If they are sincere about reduction in car population, they must definitely had thought that paying a chunk of the COE in cash is a viable option. Why not treat cars like properties? Meaning mandatory of X% in cash as downpayment, 2nd or 3rd car in the same name attract more percentage downpayment in cash, penalty clauses if car loans are pre-paid (i.e. if you sell before 5 yr). In this way, govt can also keep our record-high inflation rate in check when the buying mania of cars cease. This is a socially optimal plan.
But no. Why would they want to kill this golden goose that bring in fat money to their wallet? This is a country that runs with fiscal interest first and social interest last. If you ask me, COE is just a big 10-year old scam. The only difference back then and now is that we drivers and citizens are oiling the cogwheels of this money-spinning mechanism even better due to our unrelenting thirst for cars. We are trapped in this govt's play, and will be trapped for a long time if we do not start thinking otherwise.
Re: Changing cars? - COE prices 19-Oct 2011
The bumper crop of COE from 2005 to 2008 will never come back to the market even if all the cars registered in those years are scrapped. They will reduce the number of COEs to the minimum. The good old days of $7k to $20K COE are gone forever. Might as well get a used BMW now that will last till 2017 or 2018.
The bumper crop of COE from 2005 to 2008 will never come back to the market even if all the cars registered in those years are scrapped. They will reduce the number of COEs to the minimum. The good old days of $7k to $20K COE are gone forever. Might as well get a used BMW now that will last till 2017 or 2018.
