COE - May 2014

[Kar_lover]

Then you will see this weekend showroom crowded and next bidding all cat go up.

 

Especially with the pseudo long weekend due to Wesak Day on Tue. I also itchy feel like test driving Audi A3 sedan....but some ppl here will call me badge whore since it is a 1.4T

Actually $60K for CAT A and $70K for CAT B are still considered expensive. When bought my car 10 years ago with $70K, now only get an invisible COE, not even the car....

 

Stop living in the past dude....10 years ago a lot of other things also cheaper....

Edited May 8, 2014 by Kar_lover

[Complexkid]

Actually $60K for CAT A and $70K for CAT B are still considered expensive. When bought my car 10 years ago with $70K, now only get an invisible COE, not even the car....

 

Yup COE still high for most common people. My target car price for CAT A car is 70k-80k and CAT B is 90k-100k. Anything more I will stay away.

 

[Wolfverine]

There are Cat A cars that are priced below $100k now based on sgcarmart listing. However, they are the B&B cars and I guess everyone has to be realistic in terms of their expectation.

 

10 years ago, $120k can get Odyssey. Currently with COE at $70k, pricing is $185k. Assuming car price and COE move in tandem, COE will have to drop to $10k for the Ody to be back at good old price!

 

 

I don’t know but to me, $10k COE might be something of the past.

 

[Mcist]

Actually $60K for CAT A and $70K for CAT B are still considered expensive. When bought my car 10 years ago with $70K, now only get an invisible COE, not even the car....

haha...

If i trade in or sell my 6.5 year old car... i can't get the invisible COE

[Spanly]

 

usual scare tactics

 

seems like car agents and developers no difference nowadays

 

Totally agreed with u.... always like to use this tactics to scare those kang cheong spidder back to the showrooms... if most of these pple can hold on a while more & don't push up the demand... is common sense that the COE prices will drop further.

 

To me a $60k for a piece of paper is still unreasonably high; nothing to be so joyful about... just a year of high COE prices means pple have gotten use to the 70k-90k range

 

With the higher quotas leading up to 2016... getting to the 30-50k range would not be too unlikely.

Edited May 8, 2014 by Spanly

[Oyq1989]

Totally agreed with u.... always like to use this tactics to scare those kang cheong spidder back to the showrooms... if most of these pple can hold on a while more & don't push up the demand... is common sense that the COE prices will drop further.

 

To me a $60k for a piece of paper is still unreasonably high; nothing to be so joyful about... just a year of high COE prices means pple have gotten use to the 70k-90k range

 

With the higher quotas leading up to 2016... getting to the 30-50k range would not be too unlikely.

 

When that 'day' comes, these people will all enter the market and buy at the same time,

Pushing the price back up

This is never ending .

[Tiger1]

Got egg first or got chicken first?

[Kangadrool]

some people say god created this world.

 

Got egg first or got chicken first?

 

[car138]

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?

[Ktglfc]

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?

Bottomline, if can wait, just wait lah.

No point speculating. Anyway, we can't control price movement.

All it need is some garmen intervention, and prices could go either way.

 

If it is not time to change car, just wait, no harm :)

[Meanmachine]

Cooling measures oredi affect pty market badly, I couldn't comprehend COE still so high, despite Gahmen interferance.

 

I want COE to be back to 15-18K region , juz like 2007 era, it wld certainly steady the boat, so many ' kang chiong spiders '

[Emils]

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 think the number of cars scrapped is less important than the proportion of these owners buying another car. If out of the 18k owners who deregistered their car last year, only 50% chose to buy another car, supply of surplus COE will go up and price will fall. If all > 30k owners who Ade deregistering their cars this year are all loaded and are willing to pay a high price to re-secure their COE, then COE prices may even go up. In summary, there are other variables besides just the number of COE de-registrations and we should bear in mind that in most cases, an increase in COE supply due to deregistration,will be accompanied by a corresponding increase in demand.

[Kar_lover]

Cooling measures oredi affect pty market badly, I couldn't comprehend COE still so high, despite Gahmen interferance.

 

I want COE to be back to 15-18K region , juz like 2007 era, it wld certainly steady the boat, so many ' kang chiong spiders '

 

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.

[Enye]

 

 

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.

 

don't flirt already

 

quickly go and change before you miss the boat

 

the newspapers today reported a buying frenzy even before the weekend

 

[Mcist]

 

don't flirt already

 

quickly go and change before you miss the boat

 

the newspapers today reported a buying frenzy even before the weekend

 

Looking at the current car promotion so far...

The next bidding COE price or up not much i guess

 

Rational being... The big three AD are not adjusting their price much means they will submit around the same bidding price on the next excercise

[Meanmachine]

 

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.

Good to read your post, however i beg to differ, what goes up must come down . . . eventually !

[Meanmachine]

Pty curbs are not targeting the rich and shameless, alone thy stick out like sore thumb.

 

Coe are not meant for the rich and affordable either, ppl buy car for various reasons and usage.

I believe in equality of life, the numbers of cars reaching 10 years will be by and large enormous and we car owner cant do anything about it. To each his own.- Either maintain, trade-in or buy new, no two way about it.

 

It's a chicken and egg issues, car are de-appreciative values while investment property are appreciative over middle/ long term portfolio, men are two kinds- Cars and watches make them merry-go-round.

[Matrix0405]

 

 

 

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.

 

 

Flirting is good. New mistress + $60K COE is selling cheaper than 1yr 3 mth old hag + $90K COE. Isn't that sexy enuff?