How low will COE go?

[Vega]

there is a big loop hole in the MAS new rules... whther its 50% loan, or 40%, the dealer simply up the selling price, then rebate the buyer will do.. eg, a car suppose to be sold at 80K, mark up the price to 100K, 60% loan means 40K downpayment, rebate to the customer 20K, so effective downpayment is only 20K, still too high??? mark up higher n give more rebate loh....

 

The only thing that will works is the new tax structure... those luxury car will suffer for sure.

 

is it very dumb for the buyer to pay for the higher interest?

[Throttle2]

Yup. Whoever has booked a new car, especially those who can afford the DP, really bang balls....minimum lose at least a Rolex for nothing.

Edited March 1, 2013 by Throttle2

[Leepee]

Those current car owners, they do get back some PARF on their old cars.

That will help to supplement the 50% somewhat.

 

Pssst...tell you one secret.....many Singaporean are cash rich.

 

This 50% downpayment is a 'one-off' matter for most cash rich car buyers. Because subsequently, when they decide to change car in 1-5 years time, the car buyers will get back all or part of the 50% in cash when they sell it away. The reason is if you take linear depreciation, the car will be worth 50% value at fifth year.

And they can keep rolling in new cars using their initial 50% downpayment as buffer.

In theory what they will be losing is the monthly installment paid to the banks.

 

The system don't really need many new car owners to sustain the COE price, just need the current existing car owners to keep replacing their old cars with new cars. When gov implement 0% car growth, it will come true.

 

 

even if coe drops to 30K,you think every 2 weeks there will be many people out there who can afford 50% downpayment?

or do you think the same group of cash rich people every 2 weeks going to buy 1 new car?

Edited March 1, 2013 by Leepee

[Throttle2]

Remember the phrase that dealer use so much in the past to "scare" buyers

"Buy now , dont wait, COE will continue to rise."

 

Wonder if they will continue to use it....

[Yeshe]

Those current car owners, they do get back some PARF on their old cars.

That will help to supplement the 50% somewhat.

 

Pssst...tell you one secret.....many Singaporean are cash rich.

 

This 50% downpayment is a 'one-off' matter for most cash rich car buyers. Because subsequently, when they decide to change car in 1-5 years time, the car buyers will get back all or part of the 50% in cash when they sell it away. The reason is if you take linear depreciation, the car will still be worth 50% value.

And they can keep rolling in new cars using their initial 50% downpayment as buffer.

In theory what they will be losing is the monthly installment paid to the banks.

Think about it.

 

wah.. u are alive!!!

[Leepee]

Yes back from Limbo status.

 

 

wah.. u are alive!!!

 

[Leepee]

Yes back from Limbo status.

 

 

wah.. u are alive!!!

 

[Vega]

dealers and recent buyers kena play out by govt big time......

[Toledo]

there is a big loop hole in the MAS new rules... whther its 50% loan, or 40%, the dealer simply up the selling price, then rebate the buyer will do.. eg, a car suppose to be sold at 80K, mark up the price to 100K, 60% loan means 40K downpayment, rebate to the customer 20K, so effective downpayment is only 20K, still too high??? mark up higher n give more rebate loh....

 

The only thing that will works is the new tax structure... those luxury car will suffer for sure.

 

received a SMS from merc. says they maintaining price, absorbing increase in ARF. coe rebate for A & B at $78k & $90k respectively.

 

i suspect they are using this selling price to overcome the 50% dp. how i think this will work out is this :

 

they already factor in their cost. with rebate of 78k or 90k, it does not matter what the final coe price will be... e.g. assume c180 list price is $180k (so u can take 90k loan). if coe drop to 20k, they will refund u $58k (rebate). so net price will be $122k. u can take max loan of $90k and cough up remaining $32k dp.

 

i may call up the SE to check if they are chuting this pattern. what do u think? [laugh]

[Erykool]

Kia drop price for all their cars Liao.. Forte full spec $99999. Coe rebate is $60k. On its Facebook even say got special package which can have zero down payment...

[Throttle2]

why not if no one is buying due to high downpayment and high interest rate

 

a entry level 320i now selling $200k down to $160k in view drop of $40k coe still requires $80k downpayment

 

interest rate also gone up from 1.88% to 3.25% and max loan is 5 years ... every month loan servicing will be very very shiong compare to previous 1.88% and can drag the loan for 10 years to lower monthly repayment.

 

Can you imagine that happen to properties?

Ooooh, i just love the thought of interest rate rising to 3% overnite.

DP up, interest up, tax up, price can up or not?

 

 

[Tigershark1976]

Dude , GST and income tax will kill the seller.

 

 

GST will be transfered to the buyer, thats for sure. In fact, if there are so many jokers who get 10 yrs loan + 0 downpayment for the past 7- 8 yrs.... what is 7% GST?

 

As for Income tax, it is based on net income, not selling price bro...

Edited March 1, 2013 by Tigershark1976

[Tigershark1976]

is it very dumb for the buyer to pay for the higher interest?

 

 

does that surprise you??? didnt you know that plenty of buyer doing the same thing in the 2nd and market all these while??

[Yeshe]

Can you imagine that happen to properties?

Ooooh, i just love the thought of interest rate rising to 3% overnite.

DP up, interest up, tax up, price can up or not?

 

i know u standby leow to snap up properties on fire sale [laugh]

[Leepee]

BRILLIENT.

I know car dealers and AD minds are the best in finding loopholes and helping car buyers!

 

 

[Duckduck]

i thk many pple have put most of their $ into property liao, so alot living on rental income. Therefore, these same pple reserve any cash for future prop purchases, so 100% car loan is good coz they service it use their passive rental income.

 

Now garmen pichar their lobang, they actually have to come out "retirement" n work n save $$ for car downpayment HHAHAHAA

Edited March 1, 2013 by Duckduck

[Beng2]

Look at it this way, now that the rule is one have to fork out 50% cash.

And Assuming one DO HAVE the 50% cash to pay for the car. Assuming one will reach the 50% target in six months time, then the car buyer should take the opportunity to self bid for the COE within the six months waiting period.

 

All the more one should go bid for the COE ownself. After obtaining the COE, one can go to any car dealer to negotiates for the car. Remember with the reduced car quota, every sales is a sales. Most AD will want to sell a car with a self-bid COE.( although many will still insist that AD will not give a good package if using self-bid COE)

 

Previously people refrain from bidding the COE was simply because many don't even have the $10,000 to pay for the bidding deposit.

 

Since the game plan has changed with the 50% rule.

Those who are saving up for their 50% downpayment, should take the opportunity to try and participate in self bidding for COE.

 

This is the little side benefit,in a good way, to enable buyers to set their own preferred COE price level while saving up the 50% downpayment.

If all of the car buyers that are affected by this new rule, we're to self bid for our own COE, the COE price will come down to realistic level that car buyers feel is equitable.

 

So, with the change in rule, those who don't have $10k to pay for COE bidding deposit suddenly have money to bid for COE?

[Beng2]

Kia drop price for all their cars Liao.. Forte full spec $99999. Coe rebate is $60k. On its Facebook even say got special package which can have zero down payment...

If the COE crosses certain value during open bidding, AD can always refrain from bidding till the next round. If the premium drops to $30k, the buyer will be driving a low COE car for the price he pays. Either way sounds scary to me.