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Cat B COE continues upward rise, and supply for upcoming quarter expected to shrink significantly


awhtc
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58 minutes ago, Voodooman said:

Yes, everyone who can afford pays less but those wannabes will kpkb and G will be more than happy to oblige. The banks will be happy as well.

With PAP’s common prosperity goals to tax the rich and close the gini gap, coupled with $100b or more of reserves to replenish, higher is definitely better.

But they can probably earn more by reversing the zero COE growth policy but that has to come in when satellite ERP is in place.  Let's see if they have the balls to implement it. 

They surely have the balls to do it, after all it is a supply and demand economy.  And the rich are more than happy to pay more to differentiate themselves from the boys on the street like me🤣.  Why not ? You posted the other article about vehicle growth to be maintained till 2025, i said they might cut growth by then, let's see if my guess will be correct.

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53 minutes ago, Voodooman said:

Yes, everyone who can afford pays less but those wannabes will kpkb and G will be more than happy to oblige. The banks will be happy as well.

With PAP’s common prosperity goals to tax the rich and close the gini gap, coupled with $100b or more of reserves to replenish, higher is definitely better.

But they can probably earn more by reversing the zero COE growth policy but that has to come in when satellite ERP is in place.  Let's see if they have the balls to implement it. 

Higher is not necessarily better... when low COE returns ppl will scrap their high COE cars and gahmen have to give refund... So ok lah like interest free loan to gahmen but its not really money in the bank

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COE is highly dependent on the market situation and revenue is not guaranteed for the government.  Since the tax base has to increase, my take is ARF might be adjusted upwards, together with the implementation of satellite ERP rates, durations and locations.  We could also see another round of petrol tax increase as the government pushes for a lower carbon economy.  The goal is to tax the wealthy to increase tax revenue.

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10 minutes ago, Ct3833 said:

2025 is the year that more COE will be recycled, so they will likely to implement negative grow by then to achieve a two pronged approach, 1. Reduce number of cars on the road gradually, 2. maintain or drive up COE price.

I expect negative growth sooner than 2025.

There was an increase of 14k car in 12mths.

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1 hour ago, yishunite said:

But last time dont have ARF and VES. You add those into 2L+ car can easily exceed $150k with COE

ARF have been around since 1968 (@15% of OMV), and was 150% between 1991 to 1998.

19li53K.jpg

And to put things in perspective, with 150% ARF across the board in the mid 90s, most cars (except those with OMV of >$95K) were costlier than current.

Another factor to consider, the import duty (now know as custom duty) was 45% in the 90s vs 20% currently. Of course there was no GST and VES surcharge then.

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47 minutes ago, Carbon82 said:

ARF have been around since 1968 (@15% of OMV), and was 150% between 1991 to 1998.

19li53K.jpg

And to put things in perspective, with 150% ARF across the board in the mid 90s, most cars (except those with OMV of >$95K) were costlier than current.

Another factor to consider, the import duty (now know as custom duty) was 45% in the 90s vs 20% currently. Of course there was no GST and VES surcharge then. 

Wah... ok sorry I have been educated by this post

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59 minutes ago, Lotr said:

MAS did tighten car loan regulations in 2013 and then relaxed then in 2016.

This is the 2016 article:
https://www.straitstimes.com/singapore/transport/mas-lifts-car-loan-restrictions

The rules were tighten in 2013 because

"MAS deputy managing director Ong Chong Tee said: "In 2013, when we introduced the measures, our immediate aim was to help restrain escalating COE premiums and consequent inflationary pressures."

So they did it before and they might do it again

Now they in fund raising mode

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1 hour ago, Ct3833 said:

They surely have the balls to do it, after all it is a supply and demand economy.  And the rich are more than happy to pay more to differentiate themselves from the boys on the street like me🤣.  Why not ? You posted the other article about vehicle growth to be maintained till 2025, i said they might cut growth by then, let's see if my guess will be correct.

Actually I agree with you. 

Effective (read: expensive) Pay Per Use ERP won't happen, it is just too complicated politically.

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On 10/17/2021 at 12:33 PM, yishunite said:

Higher is not necessarily better... when low COE returns ppl will scrap their high COE cars and gahmen have to give refund... So ok lah like interest free loan to gahmen but its not really money in the bank

This is on paper theory only. In real life rarely does such things happen voluntarily. Unless like car total loss. Cos if you scrap your high COE car, yes you get back prorated COE, but your car value you get back only the ARF, so doesn't make economical sense to do that. It's not like you can just refund the COE and get a new one to put into the same car.

  

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Used car price has been on the uptrend too. I Have been tracking used odyssey and Sharan price, dealers have been increasing price from time to time and they have been holding their price firmly without much room for discount. 

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8 minutes ago, Jamesc said:

Thank you everyone for contributing to nation building.

:D

Actually most people who committed to buying will be contributing to nation building regardless it goes up or down?

Especially those on G COE, need to thank the dealer for any increase?

 

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By right no matter how you look at it this round sure goes up. Looking at the quota cut for Nov to Feb.

But sometimes things don't always turn out the way we think it is?

 

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8 minutes ago, Calvin8808 said:

Actually most people who committed to buying will be contributing to nation building regardless it goes up or down?

Especially those on G COE, need to thank the dealer for any increase?

 

Buyers drive up COE not dealers.

And yes buyers affect COE and COE does not affect buyers.

:D

 

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