Big drop in COEs ahead Options

[Ahyoo2002]

Mar 12, 2010

Big drop in COEs ahead

By Christopher Tan, Senior Correspondent

From next month, there will be a bigger-than-expected cut in certificates of entitlement (COEs) needed to buy vehicles. -- ST PHOTO: TERENCE TAN

FROM next month, there will be a bigger-than-expected cut in certificates of entitlement (COEs) needed to buy vehicles.

With almost 30 per cent fewer COEs available each month, car traders foresee premiums rising soon to between $30,000 and $35,000, from around $25,000 now.

The biggest reduction of close to 40 per cent will be for COEs for cars up to 1,600cc, the mainstay of car buyers.

The reduction is the result of a new formula unveiled yesterday in Parliament to determine the number of new vehicles allowed.

It will be based on the actual number of vehicles taken off the road, and not a forecast of vehicles to be deregistered over 12 months.

With the new formula, as well as adjustments for an oversupply of about 17,000 COEs in the last two years, the monthly supply from April to July will plunge to 4,238.

Read the full story in Friday's edition of The Straits Times.

christan@sph.com.sg

[Ahyoo2002]

Bye bye cheap COE

[RadX]

Now would be a good time to ge those cars that were ex, but they would price it same...

For eg, XC90....if the price is still $16xxxx, and given current COE, i will buy...cos considered cheap

[Ahyoo2002]

Now would be a good time to ge those cars that were ex, but they would price it same...

For eg, XC90....if the price is still $16xxxx, and given current COE, i will buy...cos considered cheap

Unless it is guarantee COE......

[Roh96]

Final call for car buyers....the gate is closing. Once you miss this boat have to wait long long for the next round of cheap COE....

[Joseph22]

Final call for car buyers....the gate is closing. Once you miss this boat have to wait long long for the next round of cheap COE....

The one who suffer are the Car seller.

[Lsm_83]

That means Used Car dealer will have good business!

[Felipe]

that's great news. hopefully, we'll see less jams in a year or two.

[Roh96]

Yes those ADs will suffer as they now have smaller pie to share. This should bring some light to 2nd hand dealers and workshops as more ppl are expected to keep their cars longer.

[LoverofCar]

wow...good good good....give me more reason now not to change car...cured the itchy....

[Leepee]

Still NOT TOO LATE, to go book a car this weekends.
6-12 months later.....the COE could raise up to $100k.....selling your car second hand might just fetch the same price you bought it now!

This is the time to get a car for those who are on the boderline of needing a car.
This time round due to the limited COE quota, subsequent months the car price will raise up greatly.
You will be able to sell off your car without losses, maybe make some gains!


This post has been edited by Leepee: Mar 12 2010, 09:52 AM

[Babyt]

yes..expensive cars mean less affordable to cheapskates, opc, red plates and those driving avante trying to be sport car right? its based on the ppl comments here lol.

dont flame me.. ;p

[Magfocus]

that's great news. hopefully, we'll see less jams in a year or two.

Agreed. There are simply too many cars on the roads now, cannot even extend 3rd gear for any period of time

[Leepee]

I think this is the best time to get a car.
The COE paper will get expensive, many who book today will likely to get a hihger paper value COE when the AD bid for the COEs the next few rounds!

[Felipe]

Agreed. There are simply too many cars on the roads now, cannot even extend 3rd gear for any period of time

ya things are getting so bad that sometimes i feel like i buy car is to use in Malaysia. that's where u really max out the car. if not, it just seems a big waste of money.

[Toapayohkid]

well, good news for existing car drivers. you already have a car, and there would be fewer cars on the road as it is more expensive to own one now

[Nmnhnlm]

Why not scrap COE? Its completely USELESS other than helping gahment make money.......

Just have a COE ballotting system.

[Swiftee]

Those that want to buy car better book n try to get COE now. The time of cheap COE is coming to an end. Gate closing soon. For existing owners = good news as lesser jams down the road.

[Relagsingh]

Now would be a good time to ge those cars that were ex, but they would price it same...

For eg, XC90....if the price is still $16xxxx, and given current COE, i will buy...cos considered cheap

premium marques wun raise by much. cuz their prices premium liao.

anyway those who can buy premium brands dun really need to worry abt COE.

can expect most dealers dishing out non garanteed bid deals. garanteed will definitely need to top up or pay a lot more.

and yes... dealers going suffer big time. especially PIs.

[Relagsingh]

yes..expensive cars mean less affordable to cheapskates, opc, red plates and those driving avante trying to be sport car right? its based on the ppl comments here lol.

dont flame me.. ;p

but u can expect alot downgrading to those cars as well