Many causes of COE spikes

happyluckydude SG

I dun think will drop for now.

Hard to say in a few years' time.

jumpmanz SG

those who brought they cars last year are the ones who made a smart move.

likeyou SG

COE increased, pap earn money.

swee_heng SG

Aiya PAP only know how to suck money only la.... i just dont understand why they want to conduct COE bidding exercise for people to bid for COE where they are the ones increasing the price of COE!!! I understand that they want to reduce the number to cars on the roads , but this is not the way!!!

They claimed that the reason for COE increase is because of lesser cars being de-registered , but think about it , when you increase COE , less cars are going to be de-registered too... cos they will just renew COE after 10 years , there are many ways to deal with too many cars on roads , they can make it like taxis , after the lifespan reaches , it will be AUTOMATICALLY de-registered , so people will have no choice but to de-register & to scrap or export their cars....

But , there is still no effective way to stop people from buying cars , cos public transports are either too crowded or with bad frequency , taxi fares are too expensive , the most effective way to reduce number of cars on the roads is to reduced or limit the number of cars imported into Singapore which i believe the government will NEVER do it cos by doing so , there will be no tax for them to earn....

βέτά SG

Maybe it's the increase in immigrants that resulted in more folks owning cars.

Wait a second, didn't they also had a part in increasing Singapore's population to 6-7 million by lax immigration policies?

All roads lead to Rome.

P-K4 SG

in such cases its really LTA fault. There's really no need to cut coe supply immediately. It could have been lowered in steps to cushion the rise. No brainers.. in the end the market get a knee jerking respond..

So much for first class civil service..

lianamaster SG

I feel COE prices might go down in a few years time when more current owners deregister their cars at the end of the 7 to 10 year lifespan.

The car booming population mainly occured in year 2007 to 2009. Hence, between 2014 to 2018 might be a good time that more new COEs are being issued.

It's a vicious cycle and we might see another wave of "down-to-earth" prices again, probably not to the level of $1, but at least not until the level we see these days.

That's just my prediction. Might be wrong.

~PEPPER~ SG

Supply and demand problem ?

Hope the COE prices drop soon.

T.Ryousuke SG

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 2500 pieces of COE up for graps,

then AD need 16k x2500= 40mil to bid for COE.

Then, if only 1000 COE, then 40k x 1000=40mil

All this is about cash flow within AD/PI and not the customer directly. But then ofcourse it's the customer $$.

Rmb all this $$ do not come immediate to the AD hand.

Another point is which AD/PI have the most cash in-hand will be in advantage. But once $$ runs out next AD will over take.

Best sale do not means most profit, nowadays with the breakdown cost from LTA site, most ppl will go for best value for $$.

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