How low will COE go?

[Andyyeo]

Will the rules of loans be changed for buying 2nd hand car ?

[Jamesc]

Maybe COE will go down to about half

 

cos people cannot put 50% down.

 

Then the gov will cut COE and the price

 

will shoot up again.

 

So maybe good time to buy now

 

when it goes down cos it won't stay

 

down for long. Esp with 6.9 million people.

 

[Wyfitms]

I still think, it will come down a little and bounce back again. If the upper middle income earners, cannot buy a CAT B, they will go of CAR A. So the demand of the COEs will still be there to stay. Not to mention, the continuous in flow of new richer citizens and rich foreigners.

 

Remember the magic number 6.9 million people!!! How can the COE comes down much?

 

magic number itself no use.

 

If most are PRC indian students with their study mummies or fast food chain managers or bus drivers then it wun affect COE right??

[Branteo]

before budget announcement, altis was quoted aound $137K. Now, orders taken for $98K ( difference $39K ).

 

For Cat B ( 2.0L ) Jap brand, the price quoted move down only slightly ( maybe 10K)

 

The cost of COE depends on maket demand..........if alot stay out of the new car market, of course it will soften.

 

I dunno whether to at or pity those who bought Altis at S$130+K, Civics at > S$160K, etc.

 

 

[Nzy]

I dunno whether to at or pity those who bought Altis at S$130+K, Civics at > S$160K, etc.

 

Some of them are probably really happy they bought at those prices anyway. At least can 100% loan. Or else with the 40-50% DP they might never be able to afford it until a few years later.

[Roh96]

I dunno whether to at or pity those who bought Altis at S$130+K, Civics at > S$160K, etc.

 

I should envy them as they have reached the peak of the mountain (92K COE). They should feel proud and song.

Edited March 6, 2013 by Roh96

[Xers007]

I dunno whether to at or pity those who bought Altis at S$130+K, Civics at > S$160K, etc.

 

saw a "Civics at > S$160K" yesterday... the design still as bad as the previous... that poor soul got to drive it for 10years..

Edited March 6, 2013 by Xers007

[HP_Lee]

magic number itself no use.

 

If most are PRC indian students with their study mummies or fast food chain managers or bus drivers then it wun affect COE right??

 

Not the students lah. Within this magic number, there are substantial amount of the imported rich that will be the one taking up the limited COEs.

[HP_Lee]

I dunno whether to at or pity those who bought Altis at S$130+K, Civics at > S$160K, etc.

 

One word, "It's a joke" [laugh]

Edited March 6, 2013 by HP_Lee

[HP_Lee]

Maybe COE will go down to about half

 

cos people cannot put 50% down.

 

Then the gov will cut COE and the price

 

will shoot up again.

 

So maybe good time to buy now

 

when it goes down cos it won't stay

 

down for long. Esp with 6.9 million people.

 

 

With the magic number of 6.9m, there is no good time to buy or not. Everyday is a good time, if you have the cash.

[Mercs]

I think next bidding Coe will drop by quite a margin.

[Ungtiong]

COE will drop to 20k.....but a lot of ppl will spoil market and start buying when its 40k..remember during the downtime, NOBODY wanted to buy cars, especially if it requires putting up liquid asset CASH!!!! in any downtime, CASH is king and nobody is stupid enough to get rid of CASH then.

[Majordan]

I think there is a niche group of really rich people in SG which means COE 10k or 200k will not affect them

 

I believe the majority of the people are fake rich, i.e. very elastic to MAS regulations

 

COE will drop 40% at least cos fake rich people cannot afford the downpayment for luxury cars whether they like it or not

[Majordan]

I should envy them as they have reached the peak of the mountain (92K COE). They should feel proud and song.

 

 

yeah can print the certificate and display at windscreen

 

more powerful that country club or Harvard decal

[Voodooman]

but not too many buyers have the ability to pay 40% DP

 

We will know in 3 to 6 months time, 50% DP is unprecedented, so noone knows the impact but I believe most car owners have at least 50k of liquid assets with them at all times. And most are so used to driving, they will beg, borrow (from friends and relative and unsecured credit lines) and steal to fuel the lifestyle, even when they have to stretch themselves a little.

 

And don't forget many have used car to dispose off to raise funds for next purchase.

Edited March 6, 2013 by Voodooman

[Voodooman]

Disposing of existing ride will be one big hurdle in getting a new car. Used car dealers will not give high price (maybe just like in 2006/7 - paper plus body). If there is still outstanding loan, buyer will need to take that into consideration too as the new d/p is much higher now.

 

You sell for less but you still have 50% leverage on next car with your net sales proceeds, so when COE drops by 30k to 40k, low resale value will not deter most people from swapping. I think there are a lot of cars registered in 05 and 06, the limited COE supply will support price to a certain extent.

 

 

[Wt_know]

those who took 10 years loan, 4/5/6 years old car still got "substaintial" outstanding loan. if coe drop, use car trade in value also drop.

trade in old car may be just nice to settle outstanding loan (probably need to top up)

new car still need 40% to 50% cold hard cash downpayment ... don't play play

 

last week newspaper there was a story a guy want to sell his 5 years old car because always breakdown

then he found out that he need to top up to settle the outstanding loan

he got no cash to top up and die die have to keep the car by servicing monthly repayment

 

And don't forget many have used car to dispose off to raise funds for next purchase.

Edited March 6, 2013 by Wt_know

[Beng2]

You sell for less but you still have 50% leverage on next car with your net sales proceeds, so when COE drops by 30k to 40k, low resale value will not deter most people from swapping. I think there are a lot of cars registered in 05 and 06, the limited COE supply will support price to a certain extent.

I got a new car in 2007. In 2009, COE premiums tanked. I was tempted to change car but could not stomach the low trade-in value of my ride. That was with max loan allowed for the new car. Now? You sell your car at a big loss and you have to come out with 40/50% dp.

When COE drops to 30-40-k, how much do you think the dealers will offer for your existing ride?