How low will COE go?

[Vega]

even so , the 5 yr term + high interest is going to be tough

 

if the dealer willing to take in my current ride at reasonable price, i may consider changing.

[Jano]

think those who barely can afford is happy they have a car now , now that interest rate also went up

[Cluboxed]

the prediction abit wrong ley...if quota > bids then it is will $1...

[Thaiyotakamli]

10% DROP ONLY, U DONT KNOW HOW CASH RICH OUR SOCIETY IS

[Wt_know]

property CM1 to CM7 can't even cool the market

 

car CM1 can cool the COE ? ... can't wait to see

[Antlau]

Saving 1 or 2 year more for the down payment is way better than paying a high COE to the government.

Why dun people see that point?

 

Have to explain again and again before they understand the advantage of this scheme.

 

 

I just wanna highlight one point, with the change in the calculation of the ARF (or the "Tax"), i think the SELLING PRICE of the vehicles will not change that much, even though the premiums of the incoming COEs may drop (but not that much possibly too)... that's the cleverness of those people who come out with this policy... die die must squeeze as much money as possible...

 

with the above governance, the possible scenarios will be:

 

1. People will buy lot more vehicles with OMV of 20k or less (i.e B&B cars; i think the "most bang for buck" cars will be the WRX (not the STi version) as their OMVs are around 20k) => CAT A as well as some CAT B Premiums (due to some 2l or above vehicles having OMV lesser than 20k) may not drop much.

 

2. People who already buy or interested in vehicles with OMV more than 20k, may not care THAT much, and thus the CAT B Premiums may not change that much.

 

However, by implementing the 50% downpayment and 50% loan policy, the ball remains still in the dealers' courts (and the buyers's too). It depends on how much profits the dealers are willing to forego, and HOW FAR the buyers are willing to "beg borrow steal starve" to get a vehicle..

 

in conclusion, the authorities will still earn as much as previous (highly possibly), the prices of certain vehicles will not drop that much (due to the increased taxes on their OMVs), dealers having headaches, and buyers thinking "Prices got change meh?" (for those that need to beg borrow steal starve, will have same problem as dealers, HEADACHE)...

 

oops...another redundant post...sorry...

[Vega]

I think the way dealers bid COE become very critical now. $90K COE is like 2/3 of the price of a BnB car.

 

in general, buyers are more concern on high coe (donating $$ to the govt for nothing) than 50% down payment.

[Antlau]

True..

 

One is "for what huh?; no reason one leh!!!; zero effort, maximum X 100k rewards", the other is "depending on own's ability"

[LukePinetree]

car where got same as property?? property gets more expensive with years, car gets cheaper and useless with age.

[Bismarck]

Ideally COE should be as low as possible because COE distorted the price of the car.

 

But realistically it will most likely be in the range of 20k to 40k for cat A and 40 to 70k for cat B.

[Meanmachine]

If thy want to tweat OMV to determine loan quantum, why not consider ' use OMV to determine COE by measure..

 

I'm not an economic-trained nor any super duper scholar in some Govt. board executive, but I see the need to fine-tuned current system to have fair-play for car-user, as we're the only nation in the whole wide world to have this Silly COE paper upon buying car/

 

My point is: If it's a best system were using, then I reckon other countries will follow & copy our COE system for car-population, but it's not and not working in our favour, it only favour the Gahmen's coffers, so it's feasible, rather a " draconian " old aged method that does not exist here anymore.

 

Correct me of I'm wrong bro/ sis.

 

 

[Meanmachine]

I just wanna highlight one point, with the change in the calculation of the ARF (or the "Tax"), i think the SELLING PRICE of the vehicles will not change that much, even though the premiums of the incoming COEs may drop (but not that much possibly too)... that's the cleverness of those people who come out with this policy... die die must squeeze as much money as possible...

 

with the above governance, the possible scenarios will be:

 

1. People will buy lot more vehicles with OMV of 20k or less (i.e B&B cars; i think the "most bang for buck" cars will be the WRX (not the STi version) as their OMVs are around 20k) => CAT A as well as some CAT B Premiums (due to some 2l or above vehicles having OMV lesser than 20k) may not drop much.

 

2. People who already buy or interested in vehicles with OMV more than 20k, may not care THAT much, and thus the CAT B Premiums may not change that much.

 

However, by implementing the 50% downpayment and 50% loan policy, the ball remains still in the dealers' courts (and the buyers's too). It depends on how much profits the dealers are willing to forego, and HOW FAR the buyers are willing to "beg borrow steal starve" to get a vehicle..

 

in conclusion, the authorities will still earn as much as previous (highly possibly), the prices of certain vehicles will not drop that much (due to the increased taxes on their OMVs), dealers having headaches, and buyers thinking "Prices got change meh?" (for those that need to beg borrow steal starve, will have same problem as dealers, HEADACHE)...

 

oops...another redundant post...sorry...

 

 

I fully agree on your last statement, ... prices will not drop much due to increased high taxes on OMV . . . car dealer are " middle-man " they need to put 3 meals a day for their family too.

 

A knock on the hand, maybe, prices will shift a little on ( B&B ) cars but not much on Conti, i suppose !

 

[EZ128]

In respond to Maseratigood

<---------- Money is just a means or tool, to satisfy basic needs, maybe plus a little luxury depending on how much an average person decides he needs it. If what you mean is that money is all important above other things, and that it's the only motivation for you to work at all, well, since everyone is entitled to his views, please feel free to live by it for the rest of your life as a slave to money, if i may put it this way.

 

<------- As long as the pursuit of money or "getting better things" is managed with a good balance with regard to other aspects of life eg family, friends, health, values, etc which, like it or not, are important parts of human life.

 

<--------- with due respect to animals, I sense that maybe you are lowering yourself too much towards them, is this necessary?

 

As responsible individuals or parents, we make enough money to be self sufficient and tale care of those who depend on us for basic needs in life so that we don't have to burden others and the society. Beyond that, we also make some extra money, if possible, to prepared for rainy days plus some so-called luxuries in life, hopefully not making this an endless chase ie good to set a limit in the pursuit so as not to sacrifice the "other things" mentioned above.

 

Fortunately I have no mortages to pay so no need to be slave to money

With due respects to animals, what to do when you cannot understand human language so must use your same kind to compare with you then you will see more clearly

 

 

[Ooosh]

Garmen wan to protect bank lah. Garmen dun care abt dealers. Bank cannot go down.

I think you mis-read my post what im implying is that gov wants to remove all the old cars on the road. Nothing to do with gov covering banks or dealers.

[EZ128]

U r wrong about that. I know a man with net worth of at least S$100m always drives a van although he also has merc. I also know another man who drives a toyota pinic but is willing to spend S$21m on some property purchases. Not everyone is a show off.

 

However, I've also seen some people who drive merc & bmw thinking so much about buying a 2-3m property while my friend (toyota pinic driver) can easily spend $21m on property.

 

There's a clear distinction between those who can but choose not to and those who wish but unable to

In the cases you mentioned above they belong to the 1st type of category

 

The man with assets over 100m - But again, why still own a merc when he so happily driving van? If this person stay in hdb then u come tell everyone that this person truly has no luxury needs and no need to show that he has a landed/condo

Your frd who can spend 21m on house - why cannot stay in hdb? why must buy a 21m house? Go figure out

[Elmo]

Noob ques: Does AD accept booking if buyers want the AD to bid at a certain COE price?

Like now when COE likely to fall, no way will pple pay for the current selling price right?

 

[Galantspeedz]

There's a clear distinction between those who can but choose not to and those who wish but unable to

In the cases you mentioned above they belong to the 1st type of category

 

The man with assets over 100m - But again, why still own a merc when he so happily driving van? If this person stay in hdb then u come tell everyone that this person truly has no luxury needs and no need to show that he has a landed/condo

Your frd who can spend 21m on house - why cannot stay in hdb? why must buy a 21m house? Go figure out

 

1 old man i know. goes around carrying a plastic bag, take public transport... , lodging is via renting a bed on upper deck of double deck bed in a HDB room. rem rent a bed.... not even a room...

 

pays for shares in the millions via cashier's order

 

dunno to pity him for not enjoying life or to salute him for being easily contented

[Leepee]

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.

 

 

 

Noob ques: Does AD accept booking if buyers want the AD to bid at a certain COE price?

Like now when COE likely to fall, no way will pple pay for the current selling price right?

Edited February 28, 2013 by Leepee