COE solutions??

[Darryn]

If I was a bank, I would be VERY keen on giving a loan for COE. Why? Because COE value is guaranteed.

 

It's got security and its not going to flucuate with the market. With straight line depreciation there's not much downside risk for the bank - once two or three payments missed, they can sieze already so very little to lose.

 

Particularly if they make the term of the loan shorter than 10 years or require a deposit.

 

Cars and properties are not like this

[Detach8]

Actually it makes sense to ask people to pay up for COE, which indirectly implies we should bid on our own and remove the dealers from doing so.

 

Right now we let the dealers own this COE bidding, and since they set the price we suck our thumb and just take whatever they bidded.

 

This will enable some people who can't own a car to start buying one when COE prices drop. It *will* benefit a group of people, and make sure that they get their cars to fetch their pregnant wife and kids around without taking up a $200K loan.

 

Of course those at low income group who can't own a car now, still won't be able to own the car. Such is the ugly fact of life. We cannot grant everybody a car, otherwise our roads will be like Bangkok.

 

This is how the COE quota works anyway -- you are priced out, no matter what. There's only so many more cars we can put on the road every month.

 

The final goal is to reduce the COE price, and I think it is a viable solution.

 

This should also prevent people from taking loan/liability that is beyond their financial capabilities.

 

I like what one of the bro/sis wrote... that there was once a time where people saved up to buy things. That should be the way.

Edited January 11, 2013 by Detach8

[Detach8]

But I will give you one old english proverb..

 

To get a loan from a bank, you must first prove you don't need it.

 

 

LOL, banks have always been bloodsuckers. Hence I encourage that people do not take a loan anyway. It is good to learn the virtue of saving money.

[Detach8]

YEp, all the ideas of no loan for COE, 30% downpayment etc etc,

 

they have the effect of dropping the price of the COE sure, but at the same time making it less affordable for the "heartlander".

 

So what you end up doing is collecting less tax from the rich, while the middle class still don't get to own cars.

 

How is that neccessarily a good solution?

 

The rich become better off, at the expense of the middle class. If you are going to control the car population, and allocate COE based on bidding - I would much rather you maximise what you can collect

 

If you cannot afford a 30% downpayment, what makes you think your salary is qualifying for a loan of such a quantum?

 

That said I am not against that we grant the lower/middle class the right to own a car. Balloting? Quota allocation on a need basis? These are some ideas being thrown around and maybe we can write an e-mail to our transport minister suggesting these ideas.

 

One thing I can think of is that the catergorization system needs to be changed from a engine capacity (cc) based categorization to a power (hp/tonne) based categorization.

[Darthrevan]

4 to 5 car lengths (about 50m) won't cause chain collision lah unless u are driving 150kmh and have a 2sec reaction time. In heavy traffic doing about 80kmh u can't stop in 50m??

 

given that each car is ~4.5m..5 car length only a maximum of 25m distance..definitely not sufficient..10 car length is more safe and logical

[Enye]

YEp, all the ideas of no loan for COE, 30% downpayment etc etc,

 

they have the effect of dropping the price of the COE sure, but at the same time making it less affordable for the "heartlander".

 

So what you end up doing is collecting less tax from the rich, while the middle class still don't get to own cars.

 

How is that neccessarily a good solution?

 

The rich become better off, at the expense of the middle class. If you are going to control the car population, and allocate COE based on bidding - I would much rather you maximise what you can collect

 

why even a foreigner can see this while some local singaporeans cannot?

 

 

 

[Ben5266]

I have a proposal.

Keep the existing COE. Keep the quota. Keep the Cat.

But, instead of the money going into who knows where, the buyer will select a charity organization to receive the payment.

If I bid COE $100k, meaning, I will be paying lets say NKF $10,000 per year, payable at the beginning of the year.

If I sell my car, the buyer will have to take over the donation for the remaining years.

Want to scrapt? Can. But cannot take back the outstanding for the current year.

 

Rich people buys car... they are doing charity. Win-Win.

 

Govertment will erase their image as money suxxer.

 

Cab bo?

[Maseratigood]

The only tweak i could think of is to move it away from capacity based to power based category.

 

Since Cat A is for vehicle lower than 1.6L, it is should be based on natural aspirated hp of average car, which is about 130hp. Anything more should go to Cat B.

Good idea

[RadX]

Good idea

 

 

den your maserati cat goods vehicles...300hp [laugh]

[Maseratigood]

I have a proposal.

Keep the existing COE. Keep the quota. Keep the Cat.

But, instead of the money going into who knows where, the buyer will select a charity organization to receive the payment.

If I bid COE $100k, meaning, I will be paying lets say NKF $10,000 per year, payable at the beginning of the year.

If I sell my car, the buyer will have to take over the donation for the remaining years.

Want to scrapt? Can. But cannot take back the outstanding for the current year.

 

Rich people buys car... they are doing charity. Win-Win.

 

Govertment will erase their image as money suxxer.

 

Cab bo?

 

Maybe part of the money from COE revenue be directly channeled to improving our public transport system. Rich men still get to own many cars since they can pay high price COEs, the common men get to enjoy improved bus and train services

 

[Zanter]

Look at housing. Govt made so many rules to make investers or buyers to pay more, like stamp fees, can only loan 60% for 2nd unit abv etc. Still the price never come down, some more make HDB also expensive, but many pple still can buy. Those that cant afford still cant buy. So wats the morale of the story? Singapore many many rich pple.

 

You were not here when b4 GCT liberalise the HDB loans. That time HDB exec was selling 220k. HDB valuation was like 110k ( which was their selling price), meaning cash was 110k. The flat price never move many many years. When open valuation was allowed, the HDB exec price shoot from 220k to 600k in 3 years. If you tell me the loan factor was not determinal, then I am speechless

[Zanter]

If I was a bank, I would be VERY keen on giving a loan for COE. Why? Because COE value is guaranteed.

 

It's got security and its not going to flucuate with the market. With straight line depreciation there's not much downside risk for the bank - once two or three payments missed, they can sieze already so very little to lose.

 

Particularly if they make the term of the loan shorter than 10 years or require a deposit.

 

Cars and properties are not like this

 

Lucky you are not a bank otherwise .

 

In the past there was a COE crash, the value of the cars dropped a lot. Many cars had negative equity, which means after sale proceeds still need to top up bank. Property is very different from cars. Cars lifespan is 10 years...sigh..I think ...nvm..U win k?

[Mllcg]

Actually it makes sense to ask people to pay up for COE, which indirectly implies we should bid on our own and remove the dealers from doing so.

 

Right now we let the dealers own this COE bidding, and since they set the price we suck our thumb and just take whatever they bidded.

 

This will enable some people who can't own a car to start buying one when COE prices drop. It *will* benefit a group of people, and make sure that they get their cars to fetch their pregnant wife and kids around without taking up a $200K loan.

 

Of course those at low income group who can't own a car now, still won't be able to own the car. Such is the ugly fact of life. We cannot grant everybody a car, otherwise our roads will be like Bangkok.

 

This is how the COE quota works anyway -- you are priced out, no matter what. There's only so many more cars we can put on the road every month.

 

The final goal is to reduce the COE price, and I think it is a viable solution.

 

This should also prevent people from taking loan/liability that is beyond their financial capabilities.

 

I like what one of the bro/sis wrote... that there was once a time where people saved up to buy things. That should be the way.

 

banks lend the rich only.

 

if u poor, too bad..

 

speaking of which, im not eligible for study loan coz my guarantor is not earning enough.

 

but that same person can take a car loan

 

btw, the car loan is around the same as the study loan

[Thedream]

Maybe part of the money from COE revenue be directly channeled to improving our public transport system. Rich men still get to own many cars since they can pay high price COEs, the common men get to enjoy improved bus and train services

 

all along being done, what... and what good has it done???

[Slayerblah]

aiya the garment want to play the coe system let them.. but at least control the 2nd hand dealer .. they burst the price so high without any paper values in it also.. n now most car has gd promo that will make buyer to buy it other then changing a 2nd hand car(due to high coe gd promo alway come).. after 6mth no money pay or dont like they sell to dealer and lose maybe like few K n buy another new car.. if this is the way ..singapore car will alway be so much n even more if still nothing is done by garment.. those rich kids n FT will just keep buying n out bid everything ..they can do it like Hong kong.. car is cheap but the carpark will kill u.. how much u use how much it charge u .. car dont belong to the garment and yet we pay n let garment enjoy! road tax, erp, hdb carpark and coe lol? 10year later is either u scrap or buy it again from garment ... what rubbish..we should make all the 3mill plus singaporean take out CPF at 1 shot ... i think the garment will cry

[Voodooman]

banks lend the rich only.

 

if u poor, too bad..

 

speaking of which, im not eligible for study loan coz my guarantor is not earning enough.

 

but that same person can take a car loan

 

btw, the car loan is around the same as the study loan

 

Car loan is secured, potential loss to bank is limited as can tow and sell. Study loan, if borrower declare bankruptcy, must write off in full. Definitely more risky.

 

Banks not charity, lend to rich, poors can borrow from Ah Long. High risk high return.

 

[Veryfree]

The government increased population in deliberation. Now they are using excuse to cut car population. We are what we eat, certainly we are what we voted.

[Veryfree]

The government increased population in deliberation. Now they are using excuse to cut car population. We are what we eat, certainly we are what we voted.