Will used car price drop after 33% increment of COE in May?

[Darryn]

if Borneo can offer up to $16k overtrade for a camry ... imagine the overtrade that conti car receive ... huat ah!

 

 

 

On a separate note -

I don't understand why MAS allows this

 

So blatant and obvious cheating - not that I particularly agree with the law, but to implement and then ignore is a pointless exercise that just allows the dealer to gouge the customer - produces WORSE outcomes than not implementing in the first place

[Wt_know]

so $50k is the new level of cheap coe that everyone accept now? huat ah!

 

$50k = cheap la ... somemore what you want

$70k = bo bian la ... otherwise has to go B.M.W liao

$100k = die die la ...aberthen

 

should I hold back my purchase till may ?

if the coe drop to 50k ...might considered buying new car ...

 

Edited April 27, 2015 by Wt_know

[Hosaybo]

On a separate note -

I don't understand why MAS allows this

 

So blatant and obvious cheating - not that I particularly agree with the law, but to implement and then ignore is a pointless exercise that just allows the dealer to gouge the customer - produces WORSE outcomes than not implementing in the first place

It is good for the gov coffers. That is a good enough reason to close one eye.

 

Over trade is one thing.... Also means that you got to pay high interest and monthly payment. It still weed out the weaker buyers but good for high earners with little cash on hand.

[Darryn]

It is good for the gov coffers. That is a good enough reason to close one eye.

 

Over trade is one thing.... Also means that you got to pay high interest and monthly payment. It still weed out the weaker buyers but good for high earners with little cash on hand.

Haizzz...

 

Sometimes policy can be short sighted -

some of those that can't really afford are painted into an even tighter corner of higher interest, bigger loan etc...

 

Sometimes scholar have too much of a one track mind

[Enye]

On a separate note -

I don't understand why MAS allows this

 

So blatant and obvious cheating - not that I particularly agree with the law, but to implement and then ignore is a pointless exercise that just allows the dealer to gouge the customer - produces WORSE outcomes than not implementing in the first place

 

 

in many cases, the OT does not involve higher loan

 

it is simply an outright discount on the car price

[Car_byte]

should I hold back my purchase till may ?

 

if the coe drop to 50k ...might considered buying new car ...

 

This kind of question is like asking is there a crystal ball to ask on COE?

If anyone has such a crystal ball, I also like to buy😄

In the end , is do go with your head or your heart, only 1 way😓

[Enye]

In the end , is do go with your head or your heart, only 1 way😓

 

i think it is wiser to go with your pocket

 

[Piyopico]

ok let's get some facts straighten out.

 

Total car population remains flat. When they say supply is ramp up in May, total population is STILL the same.

Supply goes up? Yes that that is because cars are being scrapped.

 

What happens to Demand? Just because suddenly 2000 more cars are being scrapped every month does not mean it is a good thing. First of all many people assume when there are 2000 more COE prices should dip but we all know the lag in recycling the scrapped COEs actually adds to the demand. As long as the lag is serious enough and results in more cars being taken out of the road, it will cause a serious spike in temporary demand.

 

How many will give up driving?

 

If COE drops and B&B cars dip below S$100,000 there will be a tonne of new bookings. This has been proven.

 

Act accordingly. Any potential dip will be after July. I think dip, not convinced about drop, at least not this year.

 

Of course if a black swan event occurs........................... anything goes.

 

Happy monitoring....................

 

 

[Stratovarius]

Used car depreciation always follow the new cars. Moreover, with the 50% DP rule, used car market is there to capture people without much cash in their banks so i don't think it will drop significantly as the market is still large.

I feel that used car markets are more for the first time buyers as they do not have an existing car to trade in/sell to offset the DP While existing car owners tends to look at new cars. Just my observations on my friends and colleagues. COE is not going to drop anytime soon so my advice is don't wait.

[Angcheek]

On a separate note -

I don't understand why MAS allows this

 

So blatant and obvious cheating - not that I particularly agree with the law, but to implement and then ignore is a pointless exercise that just allows the dealer to gouge the customer - produces WORSE outcomes than not implementing in the first place

 

 

16k overtrade compared to the selling price , its not that much .

 

 

If COE drops and B&B cars dip below S$100,000 there will be a tonne of new bookings. This has been proven.

 

Act accordingly. Any potential dip will be after July. I think dip, not convinced about drop, at least not this year.

 

Of course if a black swan event occurs........................... anything goes.

 

Happy monitoring....................

 

 

 

The dip will come after we change the M for transport . hahaha

[Darryn]

 

 

16k overtrade compared to the selling price , its not that much .

 

It is a big amount compared to the loan though - if you assume a purchase price of $110k >>>> $126k to cover overtrade..

 

It makes a 15% difference to the loan quantumn

 

or over the course of the loan - about $11k difference in payments

[Skymax]

Wait for market crashes! Boom and bust are certain. When it happen, make sure you are ready to do the killing. It's about time for the bust to evolve to reality.Glut of houses and COE flooding soon. In MCF, I pay "Full Cash"!

[flashbang]

 

what makes you think that prospective buyers can't get personal loan to finance the shortfall?

 

That would be different as it's likely to be an unsecured loan and interest rates are a lot higher to cover the risk of default.

 

For a secured car loan, you need an asset to back the loan. It's more risky if they lend so much money out on an asset that isn't worth as much. You give the pawnshop your Casio watch but you want to get 10k from them, doesn't make sense.

 

Now everything is kept together by the high used car prices, since the value of a used car is currently much higher than the paper value. If buyer defaults, they can repossess and sell the car for the same inflated price. However one day if used car prices crash, a lot of lenders who have lent out 40k on a 10-20k paper value car are going to be holding some risky loans.

[Andyngps]

ok let's get some facts straighten out.

 

Total car population remains flat. When they say supply is ramp up in May, total population is STILL the same.

Supply goes up? Yes that that is because cars are being scrapped.

 

What happens to Demand? Just because suddenly 2000 more cars are being scrapped every month does not mean it is a good thing. First of all many people assume when there are 2000 more COE prices should dip but we all know the lag in recycling the scrapped COEs actually adds to the demand. As long as the lag is serious enough and results in more cars being taken out of the road, it will cause a serious spike in temporary demand.

 

How many will give up driving?

 

If COE drops and B&B cars dip below S$100,000 there will be a tonne of new bookings. This has been proven.

 

Act accordingly. Any potential dip will be after July. I think dip, not convinced about drop, at least not this year.

 

Of course if a black swan event occurs........................... anything goes.

 

Happy monitoring....................

 

 

Agreed. Actually I am thinking even by 2017 pple will still be discussing about coe prices...

[Wolfverine]

This question has been asked a million times for many years. I was in the market last year to purchase cars and read about similar questions being debated based on many different "what is to com" theories [go read this forum about 1 year ago]. Looking back, many of those theories failed and I'm glad I did not go with them but most importantly base it on a personal decision as to whether I'm ready to commit.

 

[Kangadrool]

In final analysis and conclusion: cheat gahment cannot, cheat (wo)man in the street can.

 

Haizzz...

 

Sometimes policy can be short sighted -

some of those that can't really afford are painted into an even tighter corner of higher interest, bigger loan etc...

 

Sometimes scholar have too much of a one track mind

 

[Yeobt]

Went to view used cars and in one of the shops counted >35-40 used cars for sale

 

Asked dealer an innocent question, sure u can sell all of these cars?

 

Dealer responded, friend, spore is so tiny with limited roads, go count how many people living here and how many more people there will be in the next 10 years, then go do a survey how many aspire to own a car. When u get the answers, u will know that coe will never be cheap and if it happens to be cheap it is usually due to some unnatural/unusual events

 

 

when COE premium drops, it is this group of dealers that die cock standing with many over valued unsold used cars stuck and have to run road first b4 the finance companies come after them. my friend is a victim of this in mid 00s.

[Alheych]

two words...