COE - May 2014

[Voodooman]

Last Wed night, after the COE results were released, I received a few smses from different SEs updating me that their car prices have been lowered. I thanked them and told them I will wait further since I am in no hurry....got more than a year before my car due for scrap. Standard reply is COE likely to go up next round. My standard reply to that is "ok lor, wait for next quarter to see how many more COEs will be released"... some SEs then straight away no more replies, but the more resilient few reply and say "when it's time for you to get your car, hope you will use my services"....i like dat : )

So I totally agree with kangadrool....can wait wait, more rush in to buy now it's ok, means possibly more scrap car, and more COEs in next few quarters.... patience will bear great rewards : )

Yes, most who signed on the dotted line probably have a car expiring in 2014 or 2015, they will probably scrap their car and with more COE bought forward, we might see the COE tsunami sooner rather than later.

[Beng2]

Isn't it funny that people now think $60k for Cat A COE is cheap, when it cost around that much to buy a Japanese car back in 2007/8/9 with COE?

[Baal]

I went to Leng Kee to kay poh look see look see :)

 

Didnt visit the ang mo makes as one famous one having event cars sales, sure crowded. The neighbour also sure crowded cos prices lowered to attract those who dont want event cars....

 

Went to a Jap car showroom....and overheard this phone conversation from SE to potential customer :

 

"non guranteed... 50K. You top up another 3k sure guaranteed. Even the price go up to 60+, still guaranteed at 53K...."

 

My take....next round one of the COEs would be around that figure...

 

As petrol coys seemingly behave like cartels, i dont see why dealers would not adopt the same.

Isn't it funny that people now think $60k for Cat A COE is cheap, when it cost around that much to buy a Japanese car back in 2007/8/9 with COE?

 

Its the same old business trick. Monstrously inflate a price for a period, then later provide discounts and the masses/consumers would feel grateful.

[Xers007]

Was at LK as well... Mazda SE told me they have 30+ orders already and i did see a family sign on the dotted line for a standard 3... Kia SE was saying they have some orders as well as ppl are getting their demo cars that is on sale... 4k off the price

[Aishin]

Isn't it funny that people now think $60k for Cat A COE is cheap, when it cost around that much to buy a Japanese car back in 2007/8/9 with COE?

People are richer.

[Super7]

 

Yep I agree. I am NOT a fan of the loan curbs - it is way to harsh, 70% for 7 years would be more acceptable. I said long ago when they were first announced that we are not babies (and neither are the banks) and we (and the banks) can make our own decisions. We don't need govt's "protection".

 

I usually prefer not to post political comments as they are often cynical in nature. But since you brought it up, actually the average Singaporean is probably less happy now cos the loan curbs have made a separation between the haves and the have-nots. Those not so rich are structurally prevented from buying a car as they don't have the upfront downpayment. In the past a person earning $3k a month, if die die want to have car can still buy one. But with the high dp, a person earning $3k per month now has to save for few years before he can even think of getting one. So in fact the curbs isn't doing the govt any political favours.

 

Assuming the load curb does help to bring down COE prices. As a result, the marginal car buyers will be upset as now they cant get their hands on the car they wanted to buy. This could mean loss of vote for miw.

 

At the same time, those buyers who have deeper pocket are happy coz now they can buy their car at lower prices ----> maybe more vote for miw?

 

Others who have just bought their cars with high COE feel tulan, now not happy liao, vote loss for miw?

 

Hopefully voters cast their votes based on more criteria, not just COE prices.

Edited May 10, 2014 by Super7

[Super7]

Last time 1.6l cars were priced just below $100k coe prices were <$30k. So are we going to see $30k coe soon?

 

Hehe

 

Not entirely impossible especially if economy takes a dive?

[Super7]

 

Property cooling measures were put in place to prevent prices from going to high in order to avoid a property bubble.

 

For cars, the financial curbs were NOT meant to specifically reduce COE per se (I don't know why ppl keep thinking it is). It was to protect consumers from "over-extending" themselves by making it harder to get financing for cars. Of course logic dictates that COE should automatically drop since there are now less buyers who are able (or willing) to afford the high dp. Without the loan curbs, today's COE could be 6 figure already compared to the $60k-$70k now. I remember back in 2013 just before the loan curbs it was flirting at the $90k range.

 

There are many big differences between property and cars, a direct comparison cannot be made. For cars, under the old rules, someone who is cash poor can still take 100% loan for 10 years and die die buy a $100k B&B car. By enforcing min 40% dp, it will filter out those who are cash poor. This policy is to "protect" the man-in-the-street, the so-called "marginal owners" from taking high loan into a depreciating asset.

 

Property prices are in the hundreds of thousands. Ppl who don't have money won't take half a million dollar loan (want to take also bank won't give) to buy property. They just use CPF to buy HDB flat. So property curbs are mainly targeting the wealthy property speculators and to prevent property bubble burst which will hurt the banks if (or when) they default when the market crashes and they are not able to service the mortgage.

 

COE to go below $20k would be quite impossible unless govt further tighten the loan curbs which I don't think they will (or the occurrence of some other external event such as major recession), as before it gets that low many ppl will rush in to buy new car and thus bid up the COE levels. As it is, my car is only 2 years old but due to Cat A dropping to $60k (which was the same as when I got my car back in Jun 2012), I already flirting with the idea to change car now before COE goes back to $70-$80k again.

 

Well said

 

 

[Hydrocarbon]

3 days in a row, Straits time keep publishing almost similar article... Whats their agenda ah???

 

8 May page A2: SMALL CAR COE PRICES DIVE TO 21 MONTH LOW

 

9 May page A2: Motor traders dangle discount as COE prices slide

 

10 May page A2: Prices of Japanese cars fall below $100,000 mark

 

Are they trying to push the COE prices up but constantly repeating the same article....

 

154 agenda need ask meh?

 

Yep I agree. I am NOT a fan of the loan curbs - it is way to harsh, 70% for 7 years would be more acceptable. I said long ago when they were first announced that we are not babies (and neither are the banks) and we (and the banks) can make our own decisions. We don't need govt's "protection".

 

You're not a baby, neither are a lot of people, but then again, there are other people who ARE babies.

 

I'm sure you would have met a few of them before, either at school, work or otherwise. They are the people who can't take care of themselves, and who would blame everybody else for their own failures. While I too detest at being treated in this way with the loan curbs, I think that it is vital to have some form of curbs so people cannot simply buy a car by walking into a showroom empty handed.

 

I remember pre-loan curbs, there were car dealers in pasar malaam selling a $1 driveaway.. Many people couldn't resist it.

 

The guy earning 3k should just BMW (sorry, it might sound elitist but it is the hard truth), the govt is doing him/her a favour. If he leveraged high high to buy a real BMW, he is still going to vote against the govt for making his life so difficult. The irresponsibles are going to blame everyone except themselves.

 

It sounds elitist, but it is true. 3K/month is not enough for a car in Singapore.

Some people know not to do certain things, but others need to be smacked hard to not do those same things.. =D

 

If i am the Govt, i will be harder that that.

COE full cash payment only, bidding only with full cash as deposit

Car price 50% down

Loan tenure max 3 yrs

All TDSR applies.

 

Thank goodness you not sitting in Parliament then.. HAHAHAHA...

[Sdf4786k]

Last year 18k cars de-registered, COE price @ $70-90K + .

 

This year expected >30K cars to be de-registered, more than 67% more than last year. Will COE price fall proportionately by similar percent?

 

Next few years, more than 100K cars expected to be scrapped each year, what will be COE price?

I supposed time to review the scrapped car. Used to be scrapping a car gives good rebate. 29 K for 2lt car.

 

It would be a very good time to also reduce the quota so that the road are not so congested.

 

Driving on SG road nowadays are no longer a pleasure.

[Throttle2]

 

 

Thank goodness you not sitting in Parliament then.. HAHAHAHA...

 

Yup, thank goodness.

I heard cannot wear gold watches nor drive sportscars nor smoke cigars ....wahaha

[Hydrocarbon]

Yup, thank goodness.

I heard cannot wear gold watches nor drive sportscars nor smoke cigars ....wahaha

 

Don't worry lah, when you're in power, you decide what you want.. Happy happy change CPF min sum, happy happy cut COE, happy happy UP ERP.. So, I don't think gold watches, supercars and cigars are big issue.. =D

 

[Duckduck]

 

154 agenda need ask meh?

 

but it seems very coordinated n substantial. today got report on how G!C has been investing, then got more n more empathic articles n "personal opinions", add that w the recent minister upgrades n now car COE dropping, something fishy is afoot.

 

big change at the top so need to calm the waters before announce? another michael facepalm incident??!?! I dont erections is anytime soon... plus its too early for 2016 campaigning... hmmz...

 

Edited May 11, 2014 by Duckduck

[Mcist]

 

Assuming the load curb does help to bring down COE prices. As a result, the marginal car buyers will be upset as now they cant get their hands on the car they wanted to buy. This could mean loss of vote for miw.

 

At the same time, those buyers who have deeper pocket are happy coz now they can buy their car at lower prices ----> maybe more vote for miw?

 

Others who have just bought their cars with high COE feel tulan, now not happy liao, vote loss for miw?

 

Hopefully voters cast their votes based on more criteria, not just COE prices.

Frankly... there are sure many ways to control cars in Singapore.

But our government are always the same old measurable trick... that is dollars & cents

 

It's like our workplace appraisal system... boss will tell us to set measurable goals... it's really the

easiest & what the bosses are interested...

 

Our ministers are paid in millions in annual salary & they are expected to do better than this.

If every decision almost the same get ah pig & ah dog can liao or everyone gets to become a minister a month lor

 

They really got to do better than this...

[Duckduck]

.can wait wait, more rush in to buy now it's ok, means possibly more scrap car, and more COEs in next few quarters.... patience will bear great rewards : )

 

yup my relative this wkend booked a new car n traded in her 6yr old one... since buyers going for new cars now its quite likely many will scrapped/exported so the quota recycling continues... almost like self fulfilling...

[Civic6228]

Frankly... there are sure many ways to control cars in Singapore.

But our government are always the same old measurable trick... that is dollars & cents

 

It's like our workplace appraisal system... boss will tell us to set measurable goals... it's really the

easiest & what the bosses are interested...

 

Our ministers are paid in millions in annual salary & they are expected to do better than this.

If every decision almost the same get ah pig & ah dog can liao or everyone gets to become a minister a month lor

 

They really got to do better than this...

 

Give some good ideas leh .... COE has been around for so longgggggggg.

[Matrix0405]

 

Give some good ideas leh .... COE has been around for so longgggggggg.

 

There is really no need for more ideas. The recent exhaustive extensive feedback/brainstorm/multiple meetings on COE ended up with a tweak - remove Merc from Cat A.

[Chucky2007]

I just paid $60k to pay for house Reno.. can only barely pay for Coe and not the car.. the high Coe makes decision to spend on other livelihood expenditure over a 4 wheel that expires in 10 years...Easy to decide.. I nearly bought a car that I wouldn't have really need.

 

After Reno ends in 2-3 weeks, starting July every month cash flow back pay mortgage and kids education.. woohoo!

 

Thanks to all rich folks who keep Coe high so that poor folks like me can be kept out of the high cost purchase!!

 

阿Q aka sour grape.. haha

Edited May 11, 2014 by Chucky2007