LTA to study why COE plummets

[Liuz0004]

like some have mentioned, minimum bid for COE will start from $1000 or even $5000.

 

now that i got my $2 COE, i can use the rest to bid for my fav number plate

[Chongster]

maybe they will hire an ang mo consulting firm to study for 3 months, then have an ang mo guy to tell them in ang mo accent that supply is more than demand, therefore COE dropped to $2.

 

then they will feel shiok.

[Gbsm]

Classic!

[Help1]

haven u heard of "small fortune dun go out, how can big fortune come in"?????

[Mcfguy]

Of course must study....they can't let the fat cow go so easily. They tweaked the system right after the last crash to make sure it doe not happen again.....i'm sure they are keen to do the same this time.

 

 

Meanwhile, must compensate by upping more ERP maybe...

[Scoots]

Asked for its reaction to the $2 COE, a Transport Ministry spokesman said: 'It's a result that's quite unexpected. We'll have to study it carefully to find out why it happened.'

 

I think we also need to set up a committee to study carefully on why the transport ministry needs to study carefully to find out why COE dropped to $2.

 

After all, applying a recent statement regarding HDB flats:"It's what it's worth at the point of purchase"

 

So what's wrong with COE being worthy of $2 at the time of purchase??

[King]

so that car dealers wun have to be retreneched and they join civil servc as teachers

 

hahahahahaha

teacher?teach people to suck blood

[King]

The whole idea behind COE is touted as control vehicle

population. So as long as the COEs are limited to those

available, there is nothing wrong with it is its $1 or

$100k, since its purely demand and supply.

 

Whats there to study. We never see them studying anything

when the COE is sky high.

 

Unless the whole idea is to make money, then there is

something wrong

 

 

[King]

next time HDB flat also got COE

[Onenightstd2]

Nov 20, 2008

COE plummets to $2

 

Besides weak demand, motor traders blame harder-to-get credit

By Christopher Tan

THE COE premium for small cars plummeted yesterday to a record low $2, from $10,455 just a fortnight ago. Premiums for all other categories also ended sharply lower as demand for new vehicles tanked in tandem with the economy.

As the tender closed at 4pm yesterday, the certificate of entitlement to buy a car with an engine size up to 1,600cc ended at its lowest ever since the quota system started in 1990.

 

But it did not take market watchers completely by surprise. Ms Lisa Lee, a senior analyst at Nomura Singapore, said: 'It just shows demand is drying up. People are getting more cautious.

 

'Every day you hear of job cuts.'

 

The previous lowest car premium was $50, in December 1997. That, however, was when bidding was closed - bidders could not see what the prevailing premium was.

 

After that freak result, the system was changed to the current open bidding system, where the prevailing premium is transparent to all. Observers said in such a system, a crash is impossible because bidders would rush in at the eleventh hour if they saw that prices were low.

 

But there was no rush yesterday. With half an hour to go before tender closed at 4pm, premiums remained at $1 across the board, a sign that there were fewer bids than available COEs.

 

Things began to move only in the last 15-20 minutes, but not for the small car COEs - which make up the bulk of certificates in each tender. By 4pm, bidding in this category closed at $2, with the number of bids exceeding the supply of 1,851 COEs by just one.

 

Mr Gavin Yeo, commercial director of Toyota agent Borneo Motors, one of the largest COE bidders here, said: 'When premiums are at $1 at 3.30pm, definitely the demand is weak.'

 

Mr Yeo said Borneo made more bids than usual, and would have submitted more if it had the time.

 

COE prices in all other categories fell sharply as well. COE for cars above 1,600cc closed at $4,889 - almost half the previous value. The Open COE, which can be used for any vehicle type but ends up largely for cars, closed at $6,889 - down from $10,490 before.

 

COE for commercial vehicles ended at $6,189, from $8,889; motorbike COEs slid to $1,012 from $1,509.

 

Besides the weak demand for cars in the current economy, motor traders said tighter access to credit by banks and finance houses had caused more car loan applications to be rejected.

 

Singapore Vehicle Traders Association president Neo Nam Heng said: 'To get an 85 per cent loan, even if you have a very good income, is very difficult now.'

 

Motor Traders Association president Tan Kheng Hwee sees a bright side, though. 'For shoppers who are going in to buy now, they can expect discounted prices and good deals,' she said.

 

'If you think you're going to want a car for the next 10 years and you can afford one now, then better buy now because no one can be certain for how long COE prices will remain below $10,000.'

 

Dealers have begun slashing prices. Borneo has cut prices by up to $6,000, bringing the cheapest model, the Toyota Vios, to just below $44,000. Chery agent Vertex Automobile has cut the QQ's price by $5,000, to $22,999.

 

Most buyers who secured COEs yesterday can expect sizeable rebates from dealers. Folks looking to extend their car's lifespan can look forward to a lower renewal premium, which is the average of three months' COE rates.

 

Dealers said they expect buyers to rush back in.

 

Asked for its reaction to the $2 COE, a Transport Ministry spokesman said: 'It's a result that's quite unexpected. We'll have to study it carefully to find out why it happened.'

 

LTA should not waste money on such study, so what if you know the reasons, it is not the first time COE hit below S$2/.00. Let be fair to everyone, when COE is at S$10,000.00 or near or above no body complain. Why complain now when is cheap, when hawker up .50cts for a bowl of mee, the whole world complain with the kpO newspapers. Singaporeans is the real itchy backside lot. If everyone agreed on a system than be gentleman enough to accept the consequence, if not we will ended up like what is happening in Taiwan politics.

 

Remember the worst is yet to hit us, DBS , OCBC, UOB or Temasek can go under also. Anything is possible with dire consequence.

[Iziz]

Eh, u habent wake up ar? Temasek go down??

[Kiant]

FIXED CEO FTW!

[B777jubilee]

actually its simple.

 

Credit market freezes. Banks are more stringent on loans, used to be liberal with 10 year $0 downpayment but with the tight credit market, such loans will not be approved.

 

So while many want to buy cars, they cannot get their loan approved. Plus the bad economy will make many think twice before buying a big ticket item.

 

Need to pay $$$ to think meh? Then pay scholars so much for f? Simple thing still need to conduct a study

[Iziz]

Need to do lar, arbo the scholars sit inside their office do wad?

[Iziz]

Pardon me, wad is FTW?

[Mojoe]

Hey dude! Long time no see!

 

We are talking about the same group of people who charges me $1300 to keep my plate on an old car and $1880 to "transfer ownership"... all for a few minutes worth of work that is even online now.

 

maybe got new scholars on board... need to create some economic modelling to tell then times are bad, banks not approving as many loans, etc.

Edited November 20, 2008 by Mojoe

[Hatch_lover]

Yeah busy with 2 kids and also travelling a fair bit for work. How are you bro?

 

I like the post above that say ask ang-mo to come and conduct study, really classic. Joke of the day for me

[Mojoe]

Busy with 1 kid and work lor... planning 2nd one probably next year... see how...

 

not some ang-mo... must be high level consultant class that charge as much hourly rate as LTA charges for transfer of ownership and and plate retention.