How low will COE go?

[Sdexxxxd]

Will that bring COE further since taxi companies have to fork out much more cash upfront?

[RadX]

car dealers like this one...sibei fast to capitalize

 

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

[Kar_lover]

honestly, i dont feel sad for the dealers. lol

 

I feel bad (not sad) for used car dealers who were taking in cars based on the recent prices. If COE drop big time the used car market will definitely drop too. They've been screwed by govt.

[macrosszero]

I feel bad (not sad) for used car dealers who were taking in cars based on the recent prices. If COE drop big time the used car market will definitely drop too. They've been screwed by govt.

 

Earn that time, ummm cheo, screwed that time, cry mother father?

 

They're in business, they have to take the downswings with the upswings.

[CH_CO]

Haha , would wanna see where would the "value" for money Korean supporters will go? Anyway this should be in place long ago , it is just basically a means test to see if the owners can afford the car .

 

The current scenario where loans are given without much considerations would not be sustainable . This % would probably be good over the long run , as I mention before , it promotes saving for the young . How the money can be used later is a separate issue but we shouldn't waste out youth's money on cars.

Edited February 26, 2013 by CH_CO

[Kar_lover]

Earn that time, ummm cheo, screwed that time, cry mother father?

 

They're in business, they have to take the downswings with the upswings.

 

There is nothing wrong for them to earn. They also making a living. Those who don't want to sell to them can always sell themselves through consignment or whatever other means. Nobody put a gun to our head to trade in with dealers. But for those who were too lazy to sell themselves (like me), the service provided by these dealers is valuable. Why begrduge them? They are a business not a charity.

 

As for upswings and downswings, yes i agree that up and down is part and parcel of any business but this is an artificial situation CREATED by the govt.

[Donut]

Car dealers and banks will come up with some funny tactics to counter the new rules (overtrade, bridging loans, etc etc)

[Kar_lover]

Haha , would wanna see where would the "value" for money Korean supporters will go? Anyway this should be in place long ago , it is just basically a means test to see if the owners can afford the car .

 

The current scenario where loans are given without much considerations would not be sustainable . This % would probably be good over the long run , as I mention before , it promotes saving for the young . How the money can be used later is a separate issue but we shouldn't waste out youth's money on cars.

 

I don't understand your first statement. How does stringent car loan rules change the fact that Korean brands are VFM? And how does it NOT affect the Japanese cars? What about luxury brands? Do the loans make them a better buy?

 

For your second statement, it has been sustaining for many years. And I have never read any report that there has been any significant amount of bank write off for car loans. What evidence do you have to prove otherwise? And how ppl want to spend their money is their business as long as not illegal.

[Zanter]

What happens to cars that have been booked but delivery only in April?

 

Those buyer LS literally. Collect car and price drop 30-40%!!!

[Kar_lover]

Car dealers and banks will come up with some funny tactics to counter the new rules (overtrade, bridging loans, etc etc)

 

Evem with overtrade or whatever, the 5yrs tenure will still be a big problem. The only way is for in house loans. But next thing you know, govt will have new rule that the the loan restriction applies to all vehicular loans be it from financial insitution or in house.

[Zanter]

I feel bad (not sad) for used car dealers who were taking in cars based on the recent prices. If COE drop big time the used car market will definitely drop too. They've been screwed by govt.

 

Its a business decision, who ask them to speculate? When they make money when COE goes up did they praise the Govt?

 

In fact would iimpact all car owners but will hit those that bought in last couple years the hardest and those who over-leverage.

[Zanter]

car dealers should not be allowed to bid for COEs for buyers to begin with.. thats what caused the COE spiralling out of control

 

thats what caused this new ruling.

 

now dealers are stuck with high COEs that cant be sold

 

Yup the open cat died standing

[Zanter]

if coe crash landed $30k-ish will $90K coe owner scrap car?

 

History repeats itself.

[Toothiewabbit]

I think max 5 year loan is a bit extreme. Paying 50% is already a good deterrence.

Agree. But i think gahmen learnt from the recent multiple property cooling off measures that if they want to meet their objective, must implement the brutal but effective measures.

 

 

[Zanter]

http://www.straitstimes.com/breaking-news/...nnouncement-201

 

Car showrooms stay open till midnight in the wake of Budget announcement

 

Car showrooms along the Alexandra Road stretch stayed open till midnight on Monday, after Deputy Prime Minister Tharman Shanmugaratnam announced in his Budget speech earlier in the day that owners of luxury cars will have to pay higher tax rates.

 

Performance Motors, which distributes the BMW brand of cars, sent out text messages to its customers informing them that it was taking orders till midnight.

 

"Loans will be capped at 50 per cent, minimum five years, with effect from tomorrow," the text message said.

 

Besides BMW, other European marque showrooms such as Jaguar, Volkswagen and Volvo also extended their opening hours on Monday night.

 

I hope none of us are suckers for this. Once the car is bought say with open COE, the COE plunge will make the car value drop like stone. Lose 20-30% easy

[Kar_lover]

Its a business decision, who ask them to speculate? When they make money when COE goes up did they praise the Govt?

 

In fact would iimpact all car owners but will hit those that bought in last couple years the hardest and those who over-leverage.

 

Almost all businesses have some form of speculation. You rent a shop space, you speculate on the traffic and potential sales, you bid for a job, you speculate on what your competitors are bidding, etc. How would you feel if you rented a shop space with good frontage and suddenly a long high wall is suddenly erected in front of your shop?

 

Although i am one of those "affected" car owner but i don't feel sorry for myself. But for businesses, it is unfair that the business environment in which they operate in is being manipulated to such a drastic extent. I think if it was 80% for 8 years (or even 70% x 7yrs) still ok.

[RadX]

those who ahve autistic, dyslexic, psychotic, moronic, single old parent, single old dog, single old wife, single wife....whatever, ask for cheap COE to buy and travel got it, now will kpkb say high expense cannot afford 50%, blah blah, write forum again....knn.....

 

gahmen sibei smart....u wan, i gib you, fr the back, i wallop lagi hard....thank u gahmen

[Zanter]

Almost all businesses have some form of speculation. You rent a shop space, you speculate on the traffic and potential sales, you bid for a job, you speculate on what your competitors are bidding, etc. How would you feel if you rented a shop space with good frontage and suddenly a long high wall is suddenly erected in front of your shop?

 

Although i am one of those "affected" car owner but i don't feel sorry for myself. But for businesses, it is unfair that the business environment in which they operate in is being manipulated to such a drastic extent. I think if it was 80% for 8 years (or even 70% x 7yrs) still ok.

 

You can tell I dont feel the love for car dealers huh?

 

Well business is not 100% make money. In good time they squeeze the buyer yeah? SO in bad times the buyers squeeze them lor.

 

The hards hit of all these measures will be Vanessa, I feel her pain man.