COE Crashed

[Juzzme]

..... I disagree

 

I want people to rush in and buy cars .... so that there will be many 2005 cars in 2007 for me to choose from

 

Just a thought...if COE in 2006/2007 goes back up to 30K region, prices of new cars also go up. E.g. assume new 2007 corolla = $75K. A 2 yr old model bought in 2005 for $58K would likely be able to sell for $50K then. That effectively means the guy buying now will only pay $4K depre per yr to use the car for 2 years ??

 

Of course, the above does not consider the difference between sale value and paper value, the 2007 one having much higher paper value as COE higher. But...between 75K for new and 50K for 2 yr old...which do you think most people will choose?

Edited October 7, 2005 by Juzzme

[Kanr]

definitely the 50k which can save yr mthly pocket,bro!!!!

[Ahfat]

There will be a time that there is no COE but everywhere ERP or ERP parking..no more coupon parking

[N00b]

if no more coe, den 1st the taxes for the cars will b raised, den road tax n stuff raised oso, erp n stuff dun need to say..also price raise...think season parking will also be raised....so

[Ice34_y2k]

actually Singaporean r beri easy 2 b brain washed... much unhappiness was arouse when GST was introduced... but everyone LL accept the 5% nw... same goes to COE!!! many going-2-be vehicle owners KPKM.. but what happen nw??? When the price drop, everyone seems so happy.. stop n think. we'r still paying one paper to get a car!!! Ang Mo are laughing at us. I ever tried to explain the COE system to my foreign friends... they look so confused and amused... 1st ques: Gotta buy a paper to buy a car??? the paper was lik 37-40k then even though its cheaper nw.... we'r still riped or raped!!!

 

juz my view la... dun rush... keep c c lok lok 1st...

[Atlantis_boi]

shhhh.. cannot tell ppl one, sekali no one change car then we cham liao

 

[Atlantis_boi]

We will ... not only car shopping, holding hands whilst shopping too

 

[Hitman]

..... I disagree

 

I want people to rush in and buy cars .... so that there will be many 2005 cars in 2007 for me to choose from

 

Just a thought...if COE in 2006/2007 goes back up to 30K region, prices of new cars also go up. E.g. assume new 2007 corolla = $75K. A 2 yr old model bought in 2005 for $58K would likely be able to sell for $50K then. That effectively means the guy buying now will only pay $4K depre per yr to use the car for 2 years ??

 

Of course, the above does not consider the difference between sale value and paper value, the 2007 one having much higher paper value as COE higher. But...between 75K for new and 50K for 2 yr old...which do you think most people will choose?

 

Well the decision depends on a few factors :-

 

1) How much debt do you wanna go ?? Remember, any loans above S$55K puts you at risk of Rule 78 and a Penalty when you change cars before the end of the Loan Period.

 

2) How long do you wanna keep your car ? If you wanna keep for the full 10 yrs, then go buy new. If you wanna change after 3 yrs, buy 2nd hand.

 

Let me just say this after owning about 7 cars in my adult life ... I get damn itchy looking at changing cars every 3 yrs. I have never held on to a car beyond 3 yrs. And I dont have to put any downpayment cause I use the cars resale value to offset the newer car's downpayment

[N00b]

can i noe wats the rule 78 abt??

[Hitman]

I agree .... many newbies are gonna jump into the car market. Then they do the wrong calculations. They calculate their monthly instalments without taking into consideration the costs of real ownership which includes :

 

1) ERP charges

2) Petrol

3) Road Tax and so on and so forth

 

Thats when you get hauled up by the banks for not making your monthly payments

[Atlantis_boi]

Agree la but wat 2 do we are in this tiny island.

 

Many motorist feel happy cos COE used to b sky high as u mentioned, nw drop quite alot already so generally many feel happy lo.

[Hitman]

Rule 78 is a penalty that the banks charged on interest that they didnt gain from you cause you settled your credit before the end of the term.

 

E.g.

 

Loan = S$100K

Interest due to them over 10 yrs = S$20K

 

You somehow struck lottery and wanna payoff the loan after 2 yrs. They will charge you additional 20% of the 20K that they didnt manage to earn from you.

 

In other words .... easy money

[N00b]

wah~ wan 2 clear the debt still need to pay more den wat i need to actually pay sia

[Hitman]

Ah bu den ..... thats why new car buyers often kena trapped by all this small print

[Saggi]

KNN lah you...CMI lahh.... everytime ask me to change but $$ never support me... always "kill" me with your Olumpics...!! Like that how to change !!

[Fastfuriou1]

Yeah me too .... his humour actually has some meaning behind it

 

Yup, very well written!

 

For the past 14 years, We have been paying billions just for a piece of paper!

 

When will singaporean 'wake up'?

 

If we can pull thru the 1968 NDP 'Heavy Rain', why can't we stay united for a month or two, stop visiting showrooms, stop buying new car! COE system will come to a tragic death!!!

[Oreo]

Agree la but wat 2 do we are in this tiny island.

 

Many motorist feel happy cos COE used to b sky high as u mentioned, nw drop quite alot already so generally many feel happy lo.

 

The one who laugh last is the best laugh...

 

Don't be too happy with what it seems to be now, cos as a good old saying "What given to your left pocket = What will be taken away from your right pocket".....

 

")

[Lucien]

Now u know why i tahan so long still dun want to buy.

Btw, i still will believe the sales of cars will still drop in the following months.

Up to you to speculate on this.