More COE Next Year (2014) .....

[Voodooman]

4x more COE quota, premium will definitely drop, it is not logical for it to stay at current level or to rise further, all things being equal.

 

Not all owners scrapping their cars will have cash of 70-100k to make the 50% cash DP and not many can afford to replace their current 10-20k COE end of life car with 80k COE new car.

 

Question is magnitude of correction, that depends largely on how much owners looking for replacement vehicles are willing or able to pay. The potential buyers pool is so large it is difficult to predict where COE will stabilize in the next few years. Not possible to estimate average net worth and earnings of this group of buyers.

 

My guess is it will breach the 60k support level when the new 50% DP rule was imposed as supply is a more important determinant of price than the harsher financing rules. And the current financing rule will stay, so why should it stay at 60k with 4x more COE supply?

 

I am hopeful. LOL.

[Pisces69]

 

ure assuming MAS loses control of S$...

 

 

 

MAS hv not lost control cos ty r monitoring all these factors n they just tweak her n there as n when ty feel the ned.

 

Maybe thats why more COEs being released to bring the price down same as property cos MAS feels its been too high for too long alrdy n its time to come down.

 

Such high prices sustained wil affect our inflation rate n interest rates etc.

 

Even the S$ wil b affected.

[13177]

Even coe drop to 50-60k level, the 40% downpayment is still a killer for even a 100k car!

[Wt_know]

downpayment was never a problem. if yes, coe should have crashed below $50k liao

 

Even coe drop to 50-60k level, the 40% downpayment is still a killer for even a 100k car!

[Oyq1989]

With the announcement of more COEs in the next quarter, i see some 2nd hand dealers increase the price of their car by 1 - 2 k

Seems like they are confident that COE price is not going to drop??

[Wt_know]

coe increase 32% but the pent up demand is at least 64% ... double than the coe availability

again, coe is heavily manipulated by dealer

dealer will not allow coe to nose-dive as they got inventory to clear with their high bidded coe

big dealer will outbid small dealer

conti dealer will outbid korean/japanese car delaer to capture the market

all in all ... depends on dealer what are the sales fulfillment and how aggresive they are tasked to push new models to capture the market

 

With the announcement of more COEs in the next quarter, i see some 2nd hand dealers increase the price of their car by 1 - 2 k

Seems like they are confident that COE price is not going to drop??

Edited April 11, 2014 by Wt_know

[Baal]

 

 

At the end of the day its dealers that decide the price of COE, not end buyers, which by itself is a travesty. Just because dealers want their fat profit, we the end users need to pay for their greediness?

And those who allowed the situation to remain status quo .......

[Voodooman]

With the announcement of more COEs in the next quarter, i see some 2nd hand dealers increase the price of their car by 1 - 2 k

Seems like they are confident that COE price is not going to drop??

COE just increase, of course they want to ask for more.

[13177]

downpayment was never a problem. if yes, coe should have crashed below $50k liao

 

 

Lol, you are right. I forgotten there are many cash rich people in sillypore.

[lausai88]

With the announcement of more COEs in the next quarter, i see some 2nd hand dealers increase the price of their car by 1 - 2 k

Seems like they are confident that COE price is not going to drop??

2nd hard car price hike, go for new car loh since more coe

[Wolfverine]

Am doubtful there will be much impact to the COE price. Maybe come down to mid-70k region.

[Duckduck]

With the announcement of more COEs in the next quarter, i see some 2nd hand dealers increase the price of their car by 1 - 2 k

Seems like they are confident that COE price is not going to drop??

 

maybe their excuse is that since more cars being scrapped due to high coe, means less 2nd hand units for sale lor.

[lulumon]

Shit. Just bought a car last week before this announcement.

 

Can I back out of the sale? I've paid 10k booking fee and they have not secured a COE for me. Can I get my money back?

 

 

[Oyq1989]

 

maybe their excuse is that since more cars being scrapped due to high coe, means less 2nd hand units for sale lor.

 

COE price increase, 2nd hand dealers increase their price too

Even if COE price falls, don't think the 2nd hand car price will fall by the same percentage.

There will be more and more people who deregistered their car and do not have money to buy new cars.. they will most likely go for 2nd hand cars..

With the demand there, 2nd hand car price will stay too..

[13177]

Still dont understand why 2nd hand car price need to follow current coe price? Wldnt it affect used car dealers business? If used car price dont follow current coe price, think the used car business should be super good now.

[Oyq1989]

Still dont understand why 2nd hand car price need to follow current coe price? Wldnt it affect used car dealers business? If used car price dont follow current coe price, think the used car business should be super good now.

 

just look at how much they mark up the price, easily 300 to 400% of the scrap value for a 2008/09 car with COE less than 10k .

Daylight robbery indeed. Even people who wants to sell their car to dealers asking for higher price due to high COEprice

In these times, the best way is to look at the depreciation.. 10,000 per yr depreciation is just too much for a japanese car.

[Penknife]

Still dont understand why 2nd hand car price need to follow current coe price? Wldnt it affect used car dealers business? If used car price dont follow current coe price, think the used car business should be super good now.

I guess that's how the market works. Used car dealers will have no business if everyone drives their car for 10 years.

 

Also, people who buy 2nd hand cars usually can't afford 1st hand cars. So, how dealers chop carrot is by taking new car prices, divide by 10 years, then multiply by the number of years left.

 

As more carrots got chopped, it became the norm.

 

That's my theory.

 

What can we do? Stop driving lo. Take (BMW) or switch to motorcycling if everyone can ditch the itch of driving.

[Sdexxxxd]

COE should drop to and stabilize around $40k within 12 months time. I think.