COE prices set to soar further

[Ithunk]

SINGAPORE - Premiums for Certificates of Entitlement (COE) - which have surged in the past year - are expected to increase even further.

 

Industry players who spoke to Media-Corp said they expect COE quotas to be reduced in the next quarter. In addition, demand for cars is expected to remain high.

 

Mr Raymond Tang, honorary secretary of the Singapore Vehicle Traders Association, said: "COE prices will be moving up again because of the demand in the market, especially for Category A (small cars).

 

"This is because dealers are bringing in smaller continental cars which go into this category - and people do want to buy these models."

 

Mr Alvin Lim, sales consultant, Komoco Motors, said: "Quite a lot of the taxi operators, they have to get COEs as well in order to put their taxis on the road.

 

"For this reason, they bid higher - as high as possible in order to secure COEs."

 

Dealers said the higher prices are driving customers away, with some turning to second-hand cars.

 

Mr Tang said Singaporeans are look ing at used cars because of the substantial difference in price between such cars and a brand new one.

 

"The difference can be about S$30,000 to S$40,000 if you opt to buy a two-year-old car," he said.

 

If the rise in COE premiums continues, dealers said smaller distributors will be driven out of the market.

 

http://www.todayonline.com/Singapore/EDC11...to-soar-further

 

 

 

[Turtlekar]

Dunno this is a good thing or bad thing, but haiz.....looks like buying car will no longer be an easy task.....

[Alheych]

komoco would definitely have a vested interest in scaring people to boost sales now.

 

in high COE times it's korean dealers like them who suffer the most. you barely see any new hyundais now. even the showroom at bt timah road 'zhap lap' alr.

[Damienic]

Is confirmed that COE quota willl be further cut meh?

[Duckduck]

komoco would definitely have a vested interest in scaring people to boost sales now.

 

in high COE times it's korean dealers like them who suffer the most. you barely see any new hyundais now. even the showroom at bt timah road 'zhap lap' alr.

 

im surprised subaru, daihatsu, suzuki, havent zhap lap yet... strong yen & coe killing them

[Curahee]

Is confirmed that COE quota willl be further cut meh?

 

Confirm will cut, they will continue cutting until they reach zero growth in future.

[Seaweed]

have we heard anyone from the trade saying COE would fall tomorrow since the beginning of COE??? [laugh] there is going to be a super bug...and we are creating super ego !!!

[Mecontle]

best is soar to 100k, then ppl will beg me to sell my car

[Kangadrool]

have we heard anyone from the trade saying COE would fall tomorrow since the beginning of COE??? [laugh] there is going to be a super bug...and we are creating super ego !!!

 

In 2010 just around CNY, I asked some SEs whether COE will drop after CNY, some told me it will drop. But, ................ [laugh]

 

[Sabretan]

Aiyo, stop suaning those SEs on their take of the COE. U shld instead suan all the so called "trained" economists n stock analysts...starting of year, all say bullish n good time to buy shares...Mid year now, look at how most shares have fallen. Now is then a good time to accumulate, at ur own risk.

 

European s--t not cleaned up yet, China cash flow n reserve also look fishy...US economy recovering like a turtle....Other than this issue, yah...the economy will do fine

[Damienic]

Confirm will cut, they will continue cutting until they reach zero growth in future.

 

it is so freaking low that I wonder how the bread and butter cars dealer survive..

[Unfair]

People who cannot drive should not buy cars.

 

Too bad our World Crass Public Transport is not doing a good job.

[13177]

Dunno this is a good thing or bad thing, but haiz.....looks like buying car will no longer be an easy task.....

Next time buying car only solely for rich people. No money and not rich, better stick to public transport.

[Civic3106]

Car with high COE will end up in scrape yard sooner or later. It is just a matter of time unless COE stay forever high for the next 10 years.

[Maroon5]

the cars as it is now are too much, no thanks to lemon lim's misforecasts. the current roads cant support, same for carparks. how can dun cut quota? wil our gahmen give up coe revenue unless no choice?

[Jolie888]

I am glad that the new MoT is continuing its (original) intended efforts to cap the fast-growing car population in Singapore.

The COE/ERP system in tandem, should be made progressively more punitive for all to own and use a car.

 

Cars (though not commercial vehicles ... which is requisite to sustain a growing economy/GDP) should be destined as luxury items here.

 

Not everyone should and can (be allowed to) own cars.

If one cannot afford a car, the alternative should be public transport.

So cut the whining about rising COE prices and take your medicine!

 

The MoT should also continue its efforts to improve on public transportation ... put more trains on the MRT tracks and more buses on the roads, to serve the public at large.

 

Unlike houses, there is no such thing that everyone ought to be given an opportunity to own a car.

That's plain BS in land-constrained Singapore.

Even if its just to own a car (and not drive), more car parks will have to be built and that in itself would take up real estate space.

 

If anyone wants to have the pleasure of driving their family around, they will need to pay for that luxury.

It has to be earned, as car ownership can never be a privilege.

We are not a communist state and the MoT can never hope to satisfy the populace' desire and want, re car ownership for the masses.

 

I don't want Singapore to end up as another Jarkarta, Manila, or Beijing.

I strongly support the MoT on this.

You had my vote, so Just Do It.

Edited June 28, 2011 by Jolie888

[Sportster]

the cars as it is now are too much, no thanks to lemon lim's misforecasts. the current roads cant support, same for carparks. how can dun cut quota? wil our gahmen give up coe revenue unless no choice?

 

If CAT A has sustained on the "sane" $30K to $40K benchmark. There will still be buying interest. A lot of 2004/5/6 cars which are deemed to be ripe for export are still hanging around on SG roads hoarding the existing COEs. Many people yearn to drive new cars, but this LTA make life so difficult with the roti prata policy, same like housing. As for CAT B, whether is it $100K or $200K, I would not bother, let it be their playground for the rich. now with CAT A being played up by cash rich Taxi operators, high price CAT A category conti cars, it's the middle class that is being sandwiched again

Edited June 28, 2011 by Sportster

[13177]

If CAT A has sustained on the "sane" $30K to $40K benchmark. There will still be buying interest. A lot of 2004/5/6 cars which are deemed to be ripe for export are still hanging around on SG roads hoarding the existing COEs. Many people yearn to drive new cars, but this LTA make life so difficult with the roti prata policy, same like housing.

Very soon those 2004/5/6 cars will reach 10 years mark. And these cars will disappeared from the road.