Many causes of COE spikes

last SG · 2010-04-11T13:51:19+00:00

Supplier and demand? Firstly, the cash for bid of COE comes from the AD upfront, b4 they hand the car and collected their $$ from the Bank. If LTA put up 250...

Calvin86 SG

Oh last month,the govt projected a huge increase in revenue for the budget due to collections from COE, and now they say this.

http://www.straitstimes.com/BreakingNews/Singapore/Story/STIStory_507854.html

Many causes of COE spikes

COE spikes not due to formula change: Lim Hwee Hua

THE spike in certificate of entitlement (COE) premiums and car prices this week was not caused by changes to a formula to determine the number of replacement COEs, Second Transport Minister Lim Hwee Hua said yesterday.

Instead, there are a host of reasons for the spike in the COE prices, including market forces and economic conditions, she told reporters after a community dialogue at the end of her visit to the Kampong Ubi-Kembangan constituency.

She also advised potential car buyers deciding on whether to make a purchase, to consider factors such as how often they will use the car and ownership costs.

Mrs Lim's remarks came days after the latest COE prices soared by $8,000 to $14,000, surprising many in the industry and sparking calls for calm.

Some dealers jacked up prices by as much as $22,000, attributing the hike to an anticipated cut in COE supply next month as a result of a new formula to determine the number of new vehicles allowed.

It will be based on the actual number of vehicles taken off the road in a preceding six-month period - and not on a forecast of deregistration over 12 months as has been the case up to now.

Read the full story in Monday's edition of The Straits Times.

sbst275 SG

In the first place how much cars can be allowed on the road? I think many has forgotten how expensive COE was back in the 1990s.

Also so COE prices spike 30 - 50% ppl accuse PAP of manipulating the system. Sure or not? Might as well I accuse ppl of overbidding since if no ppl bid it would remain at $1.

Calvin86 SG

i must say the political backlash would be lesser if the govt cut the supply gradually. Car prices would be a sign together with housing that cost is spiralling out of control in Singapore.

True the prices of COE are high in the past, but the PAP must have won votes when they lowered the COE. Now they are going reversed it, they must be prepared to pay the same price in the ballot box.

sbst275 SG

i must say the political backlash would be lesser if the govt cut the supply gradually. Car prices would be a sign together with housing that cost is spiralling out of control in Singapore.

True the prices of COE are high in the past, but the PAP must have won votes when they lowered the COE. Now they are going reversed it, they must be prepared to pay the same price in the ballot box.

funny isn't it.

If they go gradually reduce then the jam problem due to the spike in car volume in the recent 4 - 5 years wun be resolved much for the next 3 - 4 years.

When they lowered the COE, the insane (I say insane because of how they cordoned the outer ring roads) ERP came sprouting.

angel7030 SG

As the Minister said, be conservatives, COE is not an issue in our small country, it is an issue of taking from the able/rich to reduce the poor taxation. So, if you are able and can stand the cost of COE, go ahead and purchase a SLK 300 Merc or BM or even Jaguar, if not, take public transport which is very economical here. You can save alot to buy properties or some good stocks instead of buying a car and getting depreciated year by year.

Again, if we are to discuss about public transport fares, i think that is more worthwhile, for Car and COE, it is for those who are able, if you cannot make it to a small toyota Altis or a cheap Kia Forte, forget about car. Save, and maybe every year u can still go exotic places for holidays.

sbst275 SG

For one, there are times during certain exercises that the smaller cars COE turns out to be higher than premium cars.

russiabear SG

last year was a bad year for the COE money makers. so this year must make up for profit shortfall for last year lor.

βέτά SG

PAP's only objective and interest is to make more money from Singaporeans.

It was never about controlling the car population.

Equilibrium price is dictated by demand and supply conditions.

They restrict the supply while demand remains constant, can only mean price will go up.

angel7030 SG

For one, there are times during certain exercises that the smaller cars COE turns out to be higher than premium cars.

So, be it, we do not know what the real figure is, if they said nos of big car scrapped are less, how do u know, if they said, more smaller cars were scrapped, how do I know. And when COE was low, prices of car were low, and you see sweepers and even workers buy cars, be it weekends or small cars, by installment, they are suffering now trying to foot the bills. If we are smart, why not we take COE spike as a good tool to draw the line to say that now you really cannot afford a car at all. And that settle all your financial problem. And for those we are able, like me, we foot pay the high COE to bid and drive in a less congested road, it a win win situation for both the able and unable.

COE hurt both the buyers and the sellers, my Car agent is telling me time is going to hard for them, not much people buying as car prices are also high, most are doing a wait and see attitude, or get free buffets at showrooms. Now, who will benefit from COE spike, the 2nd hand car dealers and perhaps the poorer singaporeans who can enjoy more rebates or free courses to upgrade themselves as someone is paying a COE tax on their behalf.

sbst275 SG

another method is to do wat is done in Hong Kong.

Wanna buy a car? Show me you've secured a parking lot first.

angel7030 SG

The cash downpayment for a car in HK is about Sing $40,000k, if you do not have that, you cannot be OTR (on the road). Singapore can take a car out for a mere $1 in some car's agents.

sbst275 SG

Oh yes

I think MIW should be thanking everyone since the bidding price is based on the trader and indv how much they're willing to bid for.

angel7030 SG

A new "S" plated car coming out next month is consider luxury goods, even if the model is the same as last year, the driver status will be different.

charlize SG

PAP's only objective and interest is to make more money from Singaporeans.

It was never about controlling the car population.

Equilibrium price is dictated by demand and supply conditions.

They restrict the supply while demand remains constant, can only mean price will go up.

Yah.

Almost every policy is aimed at profit maximization nicely sugar coated to cover its main purpose.

And claim market and external forces are to blame when things go awry.

mh2 SG

do u think the car pop can increase by 1.5% annually.

do we built that much road??? you really think so?,,,,wtf .the garment is dreamming.

russiabear SG

do u think the car pop can increase by 1.5% annually.

do we built that much road??? you really think so?,,,,wtf .the garment is dreamming.

car pop can even increase by more, but they dare not say so. and it has nothing to do with building roads or carparks. it's just demand and supply - basic economics. owning a car is not the same as being able to drive the car. if traffic jam, ERP just go up again lor. or build more gantries. money no enuf!

mh2 SG

you are fucking correct.

but to be frank , the job of LTA is to ensure smooth traffic as they are the only authority able to orgainise this. so it still voice down to the garment controlling the car pop la.

Ritz79 SG

Hi, i seem to remember that when the government reduce the road tax, they said they want more Singaporeans to be able to own a car. Isn't it like contradicting? Correct me if i'm wrong.

Rock^Star SG

indeed now more singaporeans own cars....or rather the banks own them? lol Nobody knows exactly how the COE is derived right? except the usual quotes of market forces blah blah. COE is really a stupid tool that causes the quality of living in sg to deteriorate. I say bring back the good old days of compulsory minimum downpayment.

VernaH SG

any opinions on when COE might drop?