How low will COE go?

[Felipe]

cooling measure is there to be beaten

$20k downpayment can drive away this 5-series liao ... chop chop wor

http://www.sgcarmart.com/used_cars/info.ph...147&DL=2454

 

by law must downpayment $100K !!!

 

Beat The Cooling Measure With Our 90% In House Loan Financing At 2.28% Interest Rate! Be Quick As Our Stocks Are Limited! Last Chance To Own A Car For Your Daily Commute Before Rules Change Again!

Notice they didn't break the rules cos of the term in house financing?

[Mustank]

dun like that lah...... there are some truely small biz that need only a small van, like my neighbour a canteen operator, often see him drag 2~ 3 big baskets of veggies etc to his small van, these baskets no way to fit into a sedan or even station wagon hor ....

 

then he should buy lite ace, hi ace, transit type of vans and not those small euro vans

if he need to transport preople and goods, he should buy 4 door pickups but these are also subjected to the 5 years 50% rule

those lite ace high ace type are more economical than those small euro vans, maintenance also cheaper but these type of high ace lite ace are not popular with those cat a,b & e drifters because they are really ugly

Edited February 26, 2013 by Mustank

[Zanter]

Faster Faster buy before used car prices tumble!!!

 

Kinda like buying food thats about to go bad huh? Lelong durian with worms but still edible! Leong Lelong!

 

Prices ginna tumble bad so why the rush to commit? That guy who buy new Veloster @ 150k super dodo in my books cos in couple month maybe it only 100k..Haiz* no curing stupid .

[Damienic]

cooling measure is there to be beaten

$20k downpayment can drive away this 5-series liao ... chop chop wor

http://www.sgcarmart.com/used_cars/info.ph...147&DL=2454

 

by law must downpayment $100K !!!

 

Beat The Cooling Measure With Our 90% In House Loan Financing At 2.28% Interest Rate! Be Quick As Our Stocks Are Limited! Last Chance To Own A Car For Your Daily Commute Before Rules Change Again!

 

can like that one meh? with the new ruling, how can they give 90% loan?

[Wt_know]

aren't all financing is governed and regulated by MAS unless ah long?

 

Notice they didn't break the rules cos of the term in house financing?

 

[Wt_know]

it's like leasing scheme lor ... car belong to the company ... you pay 10% and then service monthly like car rental

but again .. it's very grey ... if it is proper financing thru in house financing arm ... it should still be governed by MAS, no?

 

can like that one meh? with the new ruling, how can they give 90% loan?

Edited February 26, 2013 by Wt_know

[Kar_lover]

Not against you but just commenting on point four and five.

 

Four: dont always say my friend this, my friend that leh, sibei sian one you know? Say i, me, my.

Five: everything else is never equal

 

Cheers

 

Haha...but it's true. I am not an investor. Although my OA fund is doing around 4 percent lah (Manulife). So this is consider as i say ok?

 

It was he who said everything else equal, not me.

Edited February 26, 2013 by Kar_lover

[Acemundo]

cannot la....it is just those creative black market schemes to beat the system to get more customers.

[Enye]

If the COE prices come down to 10-20k...

i certainly wouldnt mind buying at 60% loan...

hehehehe

 

possible in 3 years' time?

 

when large numbers of cars are due for scrap

 

and if LTA doesn't hold back some of these COEs for "famine" years

[CH_CO]

First para: what do you want me to prove? I did not make any statement per se. I just said that your assumption that all MIK buyers are marginal may not be necessarily true, meaning it may be true to some extent but not to the extent like all of them are. However since u work in credit line, i will concede that you may be right that a majority of them are indeed marginal.

 

Second para, that's just what you say. I also can say Korean cars as reliable as Japanese car. In fact my previous Fit GE started having problems after 18mths. My Kia was problem free up to the 30th month.

 

Third para: when did i bring higher models in??

 

Fourth: I don't invest but i have frens who do and this is actually what they told me. Better to buy blue chip or something like that and also that interest rates will not remain this low for long so now that it is low better to take advantage of it. I am hoping someone can tell me what the EIR is for a 1.88% flat rate over 10years tenure.

 

Fifth: if eveything else is equal, why wouldn't they? You mean a person with annual income of $60k will get higher limit than someone with $90k p.a.?

 

 

1. As i said , don't roti prata . Don't come debate lose nia change topic. You claim i am doing it based on assumption, that's your assumption. If you are doing the assumption , it is damn right dirty to accuse others of and wash your hands off it. Seriously no respect for people which do that.

 

Whilst i understand your point but that's not necessarily true. It is only your assumption (that MIK buyers are marginal). There are many who want a car with the best value and feel that this is what Korean cars are. Because as with many things, as you go up the ladder you get less incremental gains per additional dollar spent. So Korean cars at this time probably give the best balance of price and value. That doesn't make them marginal buyers. Real marginal buyers will go for the absolute cheapest as all they want is a car from point A to point B at the lowest possible price. MIKs are not the absolute cheapest. In fact these days they are not far away (price wise) from MIJ cars - the difference being the better features (and design) they offer compared to a similar MIJs.

 

 

2. As i mentioned , an occasional lemon , do you have facts to support your "assumptions" the Kia is actually AS RELIABLE? Again pure assumption , since you are assuming everything , how can one accuse others of that? Seriously acts of denial in progress , he her him it , but never me. How to make it in life doing this kind of thing. No backbone one. 30months nia no problem means 10 years no problem? I have seen 2 toyota corollas over 20 years driven to scrap with no problem in my family. So don't come talk c--k by telling me 30months is a big thing. Tell me that when you cross your 5th or 7th year.

 

3. That sentence was meant for the others comparing the bmws and stuff.

 

For your second point, you have not shown any evidence that the previous loans are/were not sustainable as you claim. Again this is only your assumption. Based on an applied interest rate (AIR) of 1.88% flat rate, the effecttive interest rate (EIR) gets lower and lower the longer the tenure. For a 10yr loan, i believe a 1.88% loan is about 3%, maybe less. If i have $50,000 ot $100,000 sitting in my bank, i would rather invest for 4-5% return instead of saving on 3% interest. That's not over-extending myself. If govt really wanted to protect the consumer, they just need to reduce the max amount of loan that is allowed to be taken based on the borrower's current take home salary (eg 25%) rather than a limit based on the price of the car. When u based on price of a car, a person earning $5k/mth and a person earning $8k/mth are limited in the same way which doesn't make sense as what is over-extending to the former is comfortable to the latter.

 

 

4. Don't come and mother father story la. Pull out so much number only to burst straight in the face. Don't change the topic , TELL ME IF YOU KNOW ? Seriously LOSER don't know , don't propose this kind of crap only to self pawn. Seriously , no offense , i don't see how your life will improve doing this. That said i am lucky i am not your friend , boh dai boh ji kana dragged in for nothing.

 

5. Well glad that you understand my point, things are never equal , so suck it up. Seriously don't roti prata yourself. Self pawn again.

Edited February 26, 2013 by CH_CO

[Damienic]

I agree.. nothing much will change... Those that buying car now, are ppl that die die have a car..

Either they can afford it no matter what is the price(the richie).. or they cannot afford not to have (on-the-road saleman)

 

In the first place, so high also got ppl buy.. i dun see this will stop ppl from getting a car. Car price rose by 100% since 2008 ?!?

What may happened is that more companies will be buying cars for their salemen or provide company loan to their staff.. Cos salemen cannot afford or able to have own transport before joinning..

 

Yeah lor...I feel will not change the situation much.

 

I estimate that with the current COE quota, about 70% of the buyers are really rich and can buy no matter what price and what kind of loan restrictions. For rest of 30%, 10% are sales people with requirement to own a car so that their employer can provide them car allowance. Another 10% are families who pool their money to buy the basic car with genuine needs such as change in family plan (e.g having new member of the family/maid or a member of family has difficulty moving around). Rest of 10% are those die die must have car type, whether they can afford it or not doesn't matter, so long they can stretched the loan to the max.

 

So if COE quota unchanged, the new ruling will only weed out buyers in the balance 10% group and perhaps half (5%) of the other group which I mention have genuine need of car because of change in family plans. Hence, the new ruling will only affect a small group of the current buyers in the market (15%). As a result of that, don't think it can impact the COE premium significantly, unless govt increase COE quota sometime later.

[Dark]

My gutfeel is that those looking for a substantial drop in COE premium because of the new ruling by MAS will be disappointed.

 

The current COE quota is already cut to an extent that it is at an all time low while demand out stripping supply by a lot. Even though this maybe boosted by the new MAS ruling, it will cause more players in the budget group to drop out since not many can afford to pay up so much cash upfront. However, in the first place, I feel more of the current buyers with the current COE quota belongs to the more affluent group. Even much of the vehicles sold in CAT A came from smaller vehicles from Mercs, BMW and Volvo where prices is typically close to 200k or more. The new ruling will only weed out rest of the buyers in the bread and butter segment which does not account much for the current car sales in the first place.

 

My estimation is that the drop in premium will not likely be more than 20K from current. Probably hovering around 60k for CAT A, and 75K for CAT B.

 

It depends on how many in the current car-buyer group are taking >60% loan. Government should have did all the number crunching before deciding on this so as to minimize the impact.

 

Any official statistics released on this so far?

[Dark]

it's like leasing scheme lor ... car belong to the company ... you pay 10% and then service monthly like car rental

but again .. it's very grey ... if it is proper financing thru in house financing arm ... it should still be governed by MAS, no?

 

So fast another creative scheme from the car industry?

[Mockngbrd]

buy bike get free car is genius idea

[CH_CO]

Haha...but it's true. I am not an investor. Although my OA fund is doing around 4 percent lah (Manulife). So this is consider as i say ok?

 

It was he who said everything else equal, not me.

 

OA is cash where you can use it else where or is it locked? Is it guaranteed?So you going to put everything inside and wait until you retire?

 

Dude , the returns from CPF isn't guaranteed it is subjected to change , go read the fine print from the CPF board.

 

Now still in self denial .

Edited February 26, 2013 by CH_CO

[Karnaugh]

Not sure if anyone mentioned this before but the COE will never become cheap because currently car owners would rather renew their COE than to buy a new car with all the new measure taking place. But remember the main intention of COE was not just to control the population of cars but also the age of the car population. The government will never allow majority of car owners renew their COE and continue drive a >10 yr old car that easily.

[Kar_lover]

OA is cash where you can use it else where or is it locked? Is it guaranteed?So you going to put everything inside and wait until you retire?

 

Dude , the returns from CPF isn't guaranteed , go read the fine print from the CPF board.

 

Now still in self denial .

 

Of cos it's not guaranteed lah. The stipulation of it being "guaranteed returns" is your own self stipulation - no pain, no gain. For me, it is safe enough that i would not mind taking a higher amount of loan at 3% and use the cash to invest in this OA fund (not to mention to give me more cashflow every month). And before u say why don't i use my own cash to invest in that same fund (obviously i don't since i refer to it as "OA fund"), the answer is that i got other forms of "indirect" investment (piggyback with others) that can only use cash so my cash is parked there.

[Mustank]

Not sure if anyone mentioned this before but the COE will never become cheap because currently car owners would rather renew their COE than to buy a new car with all the new measure taking place. But remember the main intention of COE was not just to control the population of cars but also the age of the car population. The government will never allow majority of car owners renew their COE and continue drive a >10 yr old car that easily.

 

the parf value of $10+k is the punishment lor