Another COE REQUEST! will it never end?

[Limwsv]

 

 

Given all the current screaming about 60-70k COE, it is interesting to look back and think that for a short period in the 90s, when wanton mee at Neo Tiew was still $1.50 and taxi flagdown was can't remember 1.80 or something like that and max bus fare was $1.20 or around there, COE was $100k and people were still queuing up to buy cars.

 

But you left out one important part. That was the peak COE for rich man cars. Why give the impression that 100K COE is the norm. You want to quote like that, then might is well quote that COE is only 50 dollars for the equivalent of a CAT B COE in 1998. My brother Toledo SEAT was bought with a $50 COE, he the very happy man.

 

Edited July 16, 2015 by Limwsv

[Wt_know]

oh !!! where are the $2 and $200 coe car that can drive until 2018/2019 ... sibei shiok ar

 

 

But you left out one important part. That was the peak COE for rich man cars. Why give the impression that 100K COE is the norm. You want to quote like that, then might is well quote that COE is only 50 dollars for the equivalent of a CAT B COE in 1998. My brothers Toledo SEAT was bought with a %50 COE, he the very happy man.

 

 

Edited July 16, 2015 by Wt_know

[Darryn]

Oast 16 edification their own problem!

You're right. I am unable to pay in full - only can pay 40% downpayment. I need to reserve cash for my three children Uni education as I do not want them to take any Education Loan.

Bro..I not serious. Just design system that gives me free COE.

no la, their model for distribution of HDB is skewed anyway, you award benefits based on skewed model is going to make it even more skewed.

 

[Acemundo]

I rather have a system that gives me HDB at low price. after that then try using the hdb to gain a host of other privilege. hee

Oast 16 edification their own problem!
Bro..I not serious. Just design system that gives me free COE.

 

[Ake109]

 

But you left out one important part. That was the peak COE for rich man cars. Why give the impression that 100K COE is the norm. You want to quote like that, then might is well quote that COE is only 50 dollars for the equivalent of a CAT B COE in 1998. My brother Toledo SEAT was bought with a $50 COE, he the very happy man.

 

 

Sure, I was generalizing as I don't have the table above and recalling from memory. But even for Cat 3, 83k in 1994 dollars is a lot of money. Can say 83k in 1994 is approx 150k++ in 2015 spending power (if you scale according to public transport pricing or food or HDB).

[BanCoe]

you need a steering wheel?

with or without power steering ??

 

Hand Brakes most likely not required, can use bricks or rubber wedge

[Civic6228]

 

 

Given all the current screaming about 60-70k COE, it is interesting to look back and think that for a short period in the 90s, when wanton mee at Neo Tiew was still $1.50 and taxi flagdown was can't remember 1.80 or something like that and max bus fare was $1.20 or around there, COE was $100k and people were still queuing up to buy cars.

 

COE now very cheap liao ... from the high of 90k to 60k .... already drop more than 30 percent. People should be happy.

 

Want to buy new car ... got money just buy lor what is there to analysis. No money, have to give up driving .... give up lor. It is really down to choice.

 

Btw, buying a car has no link to the price of wanton noodle.

 

For this round, I am predicting that the prices will drop further.

Edited July 16, 2015 by Civic6228

[Ake109]

 

 

For this round, I am predicting that the prices will drop further.

 

Until after GE at least.

[Renegade777]

Don't be heartless. Some people really need a car and I think it is fair if govt look into it. How many of us are in their position, like having autistic child or aged handicapped parents ? Can we feel how they feel ? If these people can have the convenience of having a car to facilitate or improve their life I don't think it is that bad. Govt give them rebate and not people like us. We don't lose a single cent by giving this group of people rebate provided they are genuine ones. Sometimes car ownership becomes so important until everyone is 'fighting bitterly' over it until we cannot give and take.

Edited July 16, 2015 by Renegade777

[Limwsv]

 

Sure, I was generalizing as I don't have the table above and recalling from memory. But even for Cat 3, 83k in 1994 dollars is a lot of money. Can say 83k in 1994 is approx 150k++ in 2015 spending power (if you scale according to public transport pricing or food or HDB).

 

I agree with you PP. In fact, if you convert to Won Tan Noodle Index, PP in 1994, 83 000$ can buy you 33 200 bowls of my favourite noodles. Now can only buy 20 750 bowls. Somewhere a loss of 13 200 bowls.

 

Some more you choose a very cheap Won Tan Noodle. Most stalls don't sell at 1.50 even back then, you have to go back to the 80's for that. Most stalls selling around 2.50$ for medium size bowl.

 

What I really object is the impression that you are aiming for, that the 90's is a period of continuously high COE prices and 100K COE is norms. If you average out the decade, COE prices across the board is not as high as that and far lower than 33 200 bowls of Won Tan Noodles.

Edited July 16, 2015 by Limwsv

[Count-Bracula]

with or without power steering ??

 

Hand Brakes most likely not required, can use bricks or rubber wedge

No undercarriage also, must shout yabba dabba doo.

[Maroon5]

 

Got this kind of lobang can share? Any FD that can give higher than car loan APR I confirm put all my money in there!

 

You took a 1.88% 1 year loan?

 

Or you are talking about FD not denominated in SGD?

 

Even SGS 5/10 year bonds are lower than equivalent 1.88% HP over 5 years. What bank can give such high FD?

 

Unless you are extreme level private client with super preferential rates can buy 1 car per week type.

Bro, all in sgd n I'm a normal folk.

On n off AD give low int rate 1.48, 1.68 etc as promo. I caught the 1.48 n jus put some money in a fd which is giving me above tat. Tats all. 😄

 

Anyw my pt is jus the pay in full means I can afford better than u keep playing like a broken record is very tiring 😂

You're right. I am unable to pay in full - only can pay 40% downpayment. I need to reserve cash for my three children Uni education as I do not want them to take any Education Loan.

No I thk ur doing great. Fr ur posts u come across as helpful n humble.

Ups for u man, bro.

[Ivan_06]

hmm act is it the T2 effect tat pple keep having to say need to pay in cash then means can well afford?

 

with the impending increase in interest rate, there are now so much more instruments to help u earn a bigger interest than the 1.88% loan interest. Right now u look hard u wil alr see FD% above 1.5%pa.

 

paying in full good. but paying in full while depleting most of one's savings not tat good.

Paying in cash, meaning using disposable income.. Of course still have cash, endowment, stocks, bonds, endowments and etc on hand lah. Okay prepared for my three children's future education with lump sums of endowment plans secured.

 

On other hand, I have come across friends who took really over stretched themselves, leveraging on low interest rates and paying for the bare minimum down payment for condo, Mercedes and etc. Go on regular holidays and always eating in posh restaurants. Then asked them about cash, savings, stocks and endowments.. It's like zero sum game.. Very scary, and the interesting thing is their combined household income is about 15k more annually compared to mine. This is excluding the dividends and payouts from my stocks and bonds.

Edited July 17, 2015 by Ivan_06

[Civic6228]

Don't be heartless. Some people really need a car and I think it is fair if govt look into it. How many of us are in their position, like having autistic child or aged handicapped parents ? Can we feel how they feel ? If these people can have the convenience of having a car to facilitate or improve their life I don't think it is that bad. Govt give them rebate and not people like us. We don't lose a single cent by giving this group of people rebate provided they are genuine ones. Sometimes car ownership becomes so important until everyone is 'fighting bitterly' over it until we cannot give and take.

 

Need car ..... there is the option of 2nd hand .... key in any budget in sg carmart, and the selection is there. No link to COE leh.

[Ake109]

Bro, all in sgd n I'm a normal folk.

On n off AD give low int rate 1.48, 1.68 etc as promo. I caught the 1.48 n jus put some money in a fd which is giving me above tat. Tats all. 😄

 

Anyw my pt is jus the pay in full means I can afford better than u keep playing like a broken record is very tiring 😂

 

 

 

OK, but 1.48% in HP equals to approx. over 2.0% apr and maybe 3% APR (depends on your tenure).

 

If you can get an FD for over 2% to 3% in SGD since 2009, that is staggering because that is above SGD 10 year bond returns.

 

Are you mixing up Flat Rate and APR interest? Not trying to doubt you but 2-3% FD is incredible for a vanilla SGD FD in recent years.

 

 

Oh yes, I agree the 'pay in full cash' has become something of a lame in-house joke here. But my real point was that the main determinant IMHO, is age. e.g. you can argue that an 18 yr old taking a 80% loan is more able to 'afford' it than a retiree taking a 20% loan.

[Maroon5]

 

OK, but 1.48% in HP equals to approx. over 2.0% apr and maybe 3% APR (depends on your tenure).

 

If you can get an FD for over 2% to 3% in SGD since 2009, that is staggering because that is above SGD 10 year bond returns.

 

Are you mixing up Flat Rate and APR interest? Not trying to doubt you but 2-3% FD is incredible for a vanilla SGD FD in recent years.

 

 

Oh yes, I agree the 'pay in full cash' has become something of a lame in-house joke here. But my real point was that the main determinant IMHO, is age. e.g. you can argue that an 18 yr old taking a 80% loan is more able to 'afford' it than a retiree taking a 20% loan.

bro we jus keep it simple using this example.

 

5yr loan of S$50k @ 1.48% = S$ 3,700 total interest

you take the same S$50k put into a higher % FD (eg.1.6%pa) and after 5 yrs, the amount at base alr much more than 3.7k. dun even need to talk about compounding the interest portion.

 

btw I thk this scenario stil valid. maybank yest advertising 2.08% FD interest so if can grab a 1.88% car loan the difference can still be made.

[Ake109]

bro we jus keep it simple using this example.

 

5yr loan of S$50k @ 1.48% = S$ 3,700 total interest

you take the same S$50k put into a higher % FD (eg.1.6%pa) and after 5 yrs, the amount at base alr much more than 3.7k. dun even need to talk about compounding the interest portion.

 

btw I thk this scenario stil valid. maybank yest advertising 2.08% FD interest so if can grab a 1.88% car loan the difference can still be made.

 

Your method of calculation is how the banks hope their customers will calculate when they came up with Flat rate interest vs APR.

 

For the FD, the principal of 50k is intact for the entire 5 year period.

 

For the HP loan, your principal is reducing because you repay a portion of the principal every month. So the _effective interest_ gets higher every single month.

 

i.e. the moment you pay your 1st installment, your principal is no longer 50k, it is lower. So your interest is immediately above 1.48%.

 

the 1.48% for $3700 is only at 1.48% effective IF you pay back $53,700 at the end of 5 years. But you start paying down the loan from the 1st day (IIRC, 1st installment is at loan start).

 

Hope you got what I am trying to say. Maybe someone else here can explain better.

 

 

p.s. BTW, 1.48% is a great rate and even if the APR turned out higher than any FD, there are of course 1001+ good reasons to keep liquidity instead of paying cash upfront.

Edited July 20, 2015 by Ake109

[flashbang]

 

Your method of calculation is how the banks hope their customers will calculate when they came up with Flat rate interest vs APR.

 

For the FD, the principal of 50k is intact for the entire 5 year period.

 

For the HP loan, your principal is reducing because you repay a portion of the principal every month. So the _effective interest_ gets higher every single month.

 

i.e. the moment you pay your 1st installment, your principal is no longer 50k, it is lower. So your interest is immediately above 1.48%.

 

the 1.48% for $3700 is only at 1.48% effective IF you pay back $53,700 at the end of 5 years. But you start paying down the loan from the 1st day (IIRC, 1st installment is at loan start).

 

Hope you got what I am trying to say. Maybe someone else here can explain better.

 

 

p.s. BTW, 1.48% is a great rate and even if the APR turned out higher than any FD, there are of course 1001+ good reasons to keep liquidity instead of paying cash upfront.

 

Although effective interest rate goes up, end of the day looking at total cash at the end of 5 years is better.

 

5 years FD with 50k at 1.68% interest = $840 interest per year, total $4200 interest collected after 5 years.

5 years loan of 50k at 1.48% interest = $3700 total interest.

 

So net savings of $500 after 5 years.