How low will COE go?

[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

[Elmo]

I agree.

A self-bid COE will probably be cheaper overall provided the AD choose to sell at the base price w/o COE. Most I think still put a premium over the price unless they are desperate enough to clear stock. If that premium is within budget think can still go for it.

 

Probably have to enquire with the specific AD for the targeted car what nett price they will be selling for self-bid COEs.

 

 

[Pss2]

I felt that to pay a hefty downpayment should be the way to correct the high COE for the past 2 years. Before 2003 or so, you need to fork out 30% downpayment for new cars and we do not have that much of a problem. Everyone actually make do with a used car or they don't even dream of buying one. It's the young people today who actually wanted the luxury, they think that rightfully they should be able to buy a car when they graduate.

 

Then again, I feel that owners who drive their cars for full 10 years should be given priority and rewarded. The COE should register under their name instead of scrapping together with the car. Any drivers who drive the car for full ten years should have this entitlement!

 

For bidding of COE, buyers should bid their own COE in order to be more transparent. And the buyer should pay according to the amount they are bidding on instead.

[Erykool]

Actually hor, since already govt say must downpay with so much cash, then why not go one step further by tweak the rule such that Coe self take cash to bid, then the car buy from dealer need to pay 20% down payment and then loan remaining 80%.

So meaning, for a OMV 20 k car, the selling price can be 40k, so self bid Coe is fork out $xx then the car itself need to pay $8k for down payment. So it all depends on how much u bid nd end up how much is the price of Coe.

 

If Coe drop to low level, then say $ 20k, means only need to pay $28k for cash and loan $32k for 5 years. Then monthly is $613 for installment.

[Saviourwu]

Then again, I feel that owners who drive their cars for full 10 years should be given priority and rewarded. The COE should register under their name instead of scrapping together with the car. Any drivers who drive the car for full ten years should have this entitlement!

 

agree with you on this. Someone who never change car and drive to full 10 years should be given rebate on COE renewal if still driving same car

[Chucky2007]

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

Good time to change your family car if Coe drop.. pay much lesser

[Thaiyotakamli]

Good time to change your family car if Coe drop.. pay much lesser

yes if drop about 50% then we can see a change haha

wonder cat A and B price drop...

[Thaiyotakamli]

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.

i also know a man with net worth at least $100m daily go and type in mcf daily

i know a man who bought D9 penthouse who take MRT daily

 

So??? its their choice

[Yrvsport]

there are 5-10% rich society can't even enjoy life even when they have 100 million in their bank end up keep on worry every now and than where will the money goes to when they die later.....that's life...

[Mockngbrd]

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

that is quite stewpig la.... got millions but dunno how to use also what's the point?

[Leepee]

By Christopher Tan and Jermyn Chow

The Straits Times

Friday, Mar 01, 2013

SINGAPORE - Car dealers woke up on Tuesday to the bleakest outlook in years for the motor industry.

 

Some customers cancelled their orders on worries they would not be able to meet sharply higher down payments for their new vehicles.

 

Others were unwilling to fork out a hefty increase in taxes for luxury cars.

 

The drastic pullback in demand led to industry veterans predicting a more than 50 per cent drop in certificate of entitlement (COE) prices within the next two tenders.

 

COEs are needed to buy new cars. Premiums are now hovering at near-record levels of $78,000 for cars up to 1,600cc and $93,000 for cars above 1,600cc.

 

Mr Karsono Kwee, executive chairman of multi-brand Eurokars Group, said: "In my 28 years in the trade, this is the most serious development I've seen."

The motor industry was hit by a double whammy on Monday.

 

The Monetary Authority of Singapore said that from Tuesday, car buyers must place down payments of at least 40 per cent of the purchase price and also settle car loans within five years. Before this, the market was unregulated for a decade.

 

Meanwhile, the Government also announced a tiered Additional Registration Fee (ARF) which can add $100,000 or more to the sticker price of a top-end car.

 

In the tiered scheme, a car with an open market value (OMV or approximate cost price) of up to $20,000 will be taxed at the current rate of 100 per cent. The next $30,000 will be taxed at 140 per cent, and any OMV above $50,000 at 180 per cent.

 

The moves led to buyers rushing on Monday night to beat the deadline before the new loan rules came into effect. On Tuesday, it was a rush of a different sort.

 

Asked if there had been order cancellations, a spokesman for the Komoco group - which sells Hyundais, Chryslers and Ferraris - said: "I'm afraid there have been some."

One millionaire car enthusiast said he cancelled the purchase of the new $1.16 million (without COE) Ferrari F12, which will cost $300,000 more under the new rules.

 

The new ARF scheme will be applied on cars registered with COEs obtained starting next month. This has led to hot demand for a small pool of existing Open Category COEs which dealers hold in reserve.

 

These COEs, which are transferable, are now trading at premiums of up to $20,000 - still only a fraction of the additional ARF payable on many luxury cars.

 

Industry players expect COE prices to tumble within the next two tenders. Mr Anthony Lim, director of parallel importer Kenso Leasing, expects them to "plunge by more than half".

 

Financial institutions are also bracing themselves for a drop in business. Ms Phang Lah Hwa, OCBC Bank's head of consumer secured lending, said the loan curbs "will certainly impact our car loans business".

 

[email protected]

 

- See more at: http://www.asiaone.com/News/Latest+News/Si...h.OkkHoeJ1.dpuf

 

[13177]

there are 5-10% rich society can't even enjoy life even when they have 100 million in their bank end up keep on worry every now and than where will the money goes to when they die later.....that's life...

That' why these rich people will splurge their money to buy many super expensive sports cars.

[Leepee]

Shaffiq Alkhatib, Lynette Tan and Law Zhi Tian | The New Paper | Friday, Mar 1, 2013

 

All he wanted was a small family car.

Mr Mas Sugianto Jumari, 30, figured that since he was going to get married at the end of this year and start a family soon after, he would need a car to take his family around.

Then came the car cooling measures announced by the Government on Tuesday, a double whammy of restrictive car loans and the introduction of a new tiered tax.

That dashed any hope of Mr Mas Sugianto buying his first car. Here The New Paper details how Mr Mas Sugianto and two other car hunters are affected by the changes:

 

Young professional

 

Dr Louis Tan, 31, has been buying second-hand cars for their affordability.

In about two years, the Certificate of Entitlement (COE) for his car will expire. When that happens, Dr Tan hopes to buy a BMW 320i.

"Most people look to upgrade their cars as they advance in their careers. This is why I am considering the upgrade to a BMW 320i."

But with the new measures, Dr Tan said he has to save up for a few years before he is able to afford a new car.

"I was hoping to take out a loan to pay off 70 to 80 per cent of the total cost, and I would be comfortable with paying $1,500 (a month)."

Dr Tan will no longer be able to get a 100 per cent loan to pay for the car as was previously allowed. Under the new curbs, he will be able to borrow only a maximum of 50 per cent of the car's total cost.

Dr Tan will also have to pay the loans within five years. Previously, the loans could be paid over the course of 10 years.

"In view of this, I will probably be looking to buy a second hand car again. At the moment, the down payment for a brand new BMW 320i is a bit too steep for me," said Dr Tan.

Currently, the down payment for the BMW 320i is approximately $100,000.

Dr Tan earns about $6,000 a month and is living with his sister and parents in a five-room HDB flat. He is single.

When asked if public transport was a viable alternative to driving, Dr Tan said: "I have to travel around from one appointment to another, so being able to drive is much more efficient.

"It is also more reliable than public transport."

 

What he wants: BMW 320i

Cost: $221,800

OMV: $37,724

ARF: $44,814 (140 per cent of OMV)

Down payment: $110,900

Monthly instalment: $2,043

Source: www.s----s.sg

- See more at: http://ride.asiaone.com/news/wheels/story/...h.RvOswIwt.dpuf

[Leepee]

Young family

 

Mr Mas Sugianto and his fiancee have already put their names down for a five-room HDB flat in Bukit Panjang.

To prepare themselves for the future, he had been visiting showrooms since June last year to buy a suitable car for his family.

The technical officer said that he had his eye on a Toyota Corolla Altis which costs about $130,000.

But he has to shelve the idea for now, he said.

Mr Mas Sugianto, who sometimes drives his father's weekend car, said: "My future wife and I have planned to have two children and we thought that we could travel in comfort in our own car.

"We were looking forward to travelling to places like Johor as one big happy family. I guess I will have to make do with public transportation for now."

Mr Mas Sugianto, who earns about $35,000 annually, said his heart sank when he learnt he could only take loans of up to 60 per cent of the purchase price of his dream car.

He said that he had intended to take a full loan of 100 per cent and was willing to make monthly payments of $1,000.

Mr Mas Sugianto, however, added that owning a car comes only second on his list of priorities.

"I can't afford to own one now. Our flat, which costs about $368,000, is at the top of the list," he said.

What he wants: Toyota Corolla Altis

Cost: $133,988

OMV: About $15,000

ARF: 100 per cent of the car's OMV

Down payment: About $53,595 (Based on 40 per cent of the purchase price)

Monthly instalment: $1,234

Source: www.s----s.sg

- See more at: http://ride.asiaone.com/news/wheels/story/...h.bakVDRrA.dpuf

[Leepee]

Shaffiq Alkhatib, Lynette Tan and Law Zhi Tian | The New Paper | Friday, Mar 1, 2013

 

Young and loaded

 

Mr Eric Cheng is only 38 but already owns four cars: a Ferrari 458, Bentley Flying Spur, Toyota Vellfire and a BMW 730li.

The CEO of ECG Holdings Private Limited, Mr Cheng describes himself as an avid car lover.

He was planning to buy a gold Rolls Royce last month, but with the new regulations kicking in today, he is postponing his plans.

"Last month, the value of the Rolls Royce was about $1.2 million. It will probably rise to more than 1.5 million (due to the ARF taxes)," he said, based on his calculations of the car's open market value.

He added: "I will watch the market's reaction to the new regulations and wait for car sales to weaken. Then car dealers might come up with promotions to entice buyers back.

"This would be a better deal for us (buyers)."

Overall, he believes that this is a "good move" for people who already have ready cash or luxury car buyers in general, as most "do not even take loans, but pay cash upfront" for the cars.

"This change would affect the sandwiched middle-class the most."

 

WHAT HE WANTS: Rolls Royce Ghost

Cost: $3.61million

OMV: $1.3million

ARF: $2.31 million (180 per cent of OMV)

Down payment: $1.8million

Monthly instalment: $30,100

Source: www.s----s.sg

- See more at: http://ride.asiaone.com/news/wheels/story/...h.HLFa8b08.dpuf

[Mockngbrd]

2 years later BMW 320i price will prob tumble and Dr will be earning more, so he can still hoots.

[Chowyunfat]

If you have make a bookings before 26 Feb and have yet to sell or trade in your current car, it will be better to cancel or back out of your purchase and negotiate for a refund of deposit. Otherwise you will lose out a lot if first March COE is above $70k (probably as Toyota and VW has many backlog and bookings) and you don't get a rebate. While your current car will be worth worth much less, over 20% or at least $10k below pre budget price. You will very likely be able to get a much better deal after 13 March even if you lose your $5k deposit.