COE solutions??

Darryn · December 27, 2012

Bro your numbers did not include car body. A 3 years old BMW 520 should fetch 10-20k or more, no?

If you include this 10k-20k, then i will definitely change.

Cheaper, not to mention get a new car with latest gadgets and (probably) lower maintenance.

Who dont want?

This would be my thought exactly -

With the "buffer" from the lower COE, most will either by able to reduce payments or get a "better" car for the same money - not to mention a new warranty etc.

Singhao · December 27, 2012

Bro your numbers did not include car body. A 3 years old BMW 520 should fetch 10-20k or more, no?

If you include this 10k-20k, then i will definitely change.

Cheaper, not to mention get a new car with latest gadgets and (probably) lower maintenance.

Who dont want?

Sure bro. When a new one only cost $160k, how much can one sell the 3 year old for in the open market? I would think not much higher than the scrap value bah. If scrap, then there's no body value to speak of, correct me if I'm wrong?

Singhao · December 27, 2012

This would be my thought exactly -

With the "buffer" from the lower COE, most will either by able to reduce payments or get a "better" car for the same money - not to mention a new warranty etc.

Haha I believe that is known as the new car smell effect. [:p]

Acemundo · December 27, 2012

I wouldn't change. Taking a 520i (common car nowadays) and ignoring interest costs:

Final price assume $245k, COE $95k, OMV $40k.

Drive 3 years scrap, get back rebate $96,500. Depreciated $148,500.

Let's say COE plunge to $10k. 520i now costs only $160k.

You drive to year 10 and then scrap for rebate of $20,000. Depreciated $140,000.

Total depreciation over 13 years = $288,500

Annual depreciation = $22,192

If didn't change car, total depreciation over 10 years = $225,000

Annual depreciation = $22,500

Once you add in interest penalties due to early redemption, it will add on to the 13 years depreciation.

brother,

to a person familiar with our car taxation system and arithmetic, he still wont change.

but you have to realise many people just look at absolute car price instalment.

i have seen lots of comments in mcf back then in years, whereby the coe was significantly lower than the high 3 years ago, that it is worthwhile to change to a new car with lower instalments or close to around the same absolute total price.

the number of people scrapping their car was at record high during 2002-2004 because the coe was at insanely high levels during years 1997 - 2000. people tend to consider changing cars after 3 years of ownership and they looked back they can still fetch such a good price for scrapping their car in exchange for a newer car.

Tedlhw · December 27, 2012

Sure bro. When a new one only cost $160k, how much can one sell the 3 year old for in the open market? I would think not much higher than the scrap value bah. If scrap, then there's no body value to speak of, correct me if I'm wrong?

Bro the car will always have body value, cos these cars are exported to 3rd world countries eg Africa.

Our cars are very sought after worldwide due to the fact that our cars are new, and low mileage.

For example A cheap 5 years jap car should fetch 1-3k in body.

inlinesix · December 27, 2012

motorised bicycle????

need motor licence?

No need. Juz follow this guidance: Visit My Website

Galantspeedz · December 27, 2012

No need. Juz follow this guidance: Visit My Website

Technical Requirements and Safety Features

Motorised bicycles that meet the following requirements will be treated like conventional bicycles and exempted from registration with LTA:

The construction of a motorised bicycle must be similar to that of a conventional bicycle;

The motorised bicycle can only be powered by an electric source;

The maximum power output of the motorised bicycle must not exceed 200 watts;

The motor power of the motorised bicycle can only cut in when the rider starts to pedal; and

The motor power of the motorised bicycle must be cut off when it reaches 25km/h or when the rider stops pedalling.

si i must continue to pedal even though it is motorised? [sweatdrop]

inlinesix · December 27, 2012

Technical Requirements and Safety Features

Motorised bicycles that meet the following requirements will be treated like conventional bicycles and exempted from registration with LTA:

The construction of a motorised bicycle must be similar to that of a conventional bicycle;

The motorised bicycle can only be powered by an electric source;

The maximum power output of the motorised bicycle must not exceed 200 watts;

The motor power of the motorised bicycle can only cut in when the rider starts to pedal; and

The motor power of the motorised bicycle must be cut off when it reaches 25km/h or when the rider stops pedalling.

si i must continue to pedal even though it is motorised?

I guess so. I nvr own 1 before. So, don't know.

Civicblade · December 27, 2012

Yes, I am going to wait until 2019 to find out. The current "lack of COE" or high prices does not bother the majority of Singaporean. It really doesn't bother me because like you I have a car that has some years left to go.

Your 3rd point is flawed because when there are more COEs returning to the pool, prices of COE comes down. Instead of reduce demand, this proposal may lead to a speculation buying of new COE as COE in hand may cost more over time as the rebate is pegged to the current price. This adds a element of uncertainty to COE bidding and does not help stabilize COE prices. The government has to acquire a COE in order to release it for bidding later in time. This means that the buying price of a COE from a person cannot be pegged to the bid price of the COE which happens in the future. So who is going to pay for the difference in price if there is a crash? The government?

The more you think the more it seems right because you have an agenda in the first place. Your brain has already wired itself to reach a conclusion favourable to your agenda.

Point 5. "Really hard to make money" isn't a fact. Is it just an baseless opinion.

I have to admit that your proposal is a good one if there isn't a used car market in Singapore. What your proposal does is effectively creating a used COE recycling effect which is what the used car market is doing right now.

are you sure LTA formula will get it right this time???? Are you going to wait until 2019 to find out if it works?? What about current lack of COEs on the market??

BTW, I will not sell my car even if I get 50% rebate because I really need it.

The more I think about it the better my solution sound. I think it is a win-win situation for EVERYONE.

1) The COE seller WINS because to him, he does not really need a car. He just bought a 50k hyndai 6 years back because cars is so cheap. He does not mind selling it for 55k now.

2) The new car buyer WINS because there is more COE quota on the market

3) the government also WINS because they have more COEs to sell. They buy back at 50% discount and sell at 100% price.

4) current car owners WIN because the net number of cars does not go up and it encourages those people who don't really need to drive to take public transport

5) Speculation will be minor because the government buys it at 50% discount and COE by its nature depreciates at 10% per annum so it is REALLY hard to make money unless COE prices go up like 30% a year or something.

6) it also discourages people to sell their COE when COE prices fall limiting fluctuations in COE supply.

This solution will be popular too because everyone wins, unlike my previous suggestions which solves problem but will be unpopular. It solves the problem of the inefficient market. There are many cars out there who have COEs bought at 10k and are willing to sell their COE at 40k. There are many new car buyers who is willing to pay $80k for new COEs. So why does not the government be a middle man and grabbed up all the old COEs at a discount and sell it to the new car buyers keeping 50% as commission.???

EVERYONE WINS??

Cerano · December 27, 2012