Car Demand in Peesai FALLS OFF THE CLIFF!

[makapaaa]

COE for small cars drops to historic low of S$2
By Lynda Hong, Channel NewsAsia | Posted: 19 November 2008 1615 hrs
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SINGAPORE: The COE price for small cars, 1,600cc and below, dived by S$10,453 to a historic low of S$2 in the latest bidding exercise.

The next biggest fall was seen in the Open Category COE, which dropped S$3,601 to S$6,889. Open Category COEs are used mainly for cars.

For big cars (more than 1,600cc), the COE went down S$3,412 to S$4,889.

Meanwhile, the premium for commercial vehicles fell S$2,700 to S$6,189.

For motorcycles, the new COE price stood at S$1,012 - down S$497 from the previous bidding exercise.

The last time the COE price plunged in the small car category was in 2001 when it went down to S$101. And the COE price for big cars was a fluke S$50 in 1997.

Car dealers cited the economic downturn as a reason for the latest falls in COE prices. It resulted in Singaporeans being more cautious when buying big-ticket items like cars.

In addition, car dealers said that even if people are interested to buy cars, it is now more difficult to get loans from banks.

One car dealer even estimated that there have been about 30 per cent more rejections from banks compared to three months ago.

But with COE prices falling so dramatically to S$2, dealers are expecting more people to start buying cars.

Ron Lim, Tan Chong Motors' general manager for sales & marketing, said: "Definitely, with COE coming down to this level...we are just not talking about Category A at $2, even across the board in the other categories. I'm definitely sure that consumers will come back to the market to look at cars again. But having said that, this expected sudden influx of demand will definitely push up the COEs again."

Hours after the latest COE results were out, some were already shopping for cars.

"Got chance to bid for a new car, cheap COE, why not?" said a man.

"I'm looking around for cars for my family. If Cat A dropped a lot, maybe I might consider," said another.

"Our sales have been pretty low. But today, to my surprise, I got two orders, after the COE (bidding) closed," said a sales woman.

- CNA/ir

 

[silverfox@]

The main concern of most people now is not to buy a car but to tighten the belt for tougher days ahead.

 

[zack123]

The question is whether the road tax and the ERP will be raised to offset the lower revenue earned from COE?

 

[makapaaa]

The main concern of most people now is not to buy a car but to tighten the belt for tougher days ahead.

Spot on! Sporns should be greatful that they are better off than Cambodians! *hee*hee*​

 

[Leegimeremover]

Spot on! Sporns should be greatful that they are better off than Cambodians! *hee*hee*​

Harry, you should be grateful you are not dead.

 

[sally]

$2 for a coe. Time to buy a car now?

 

[sherrry]

Taking reference from the saga not too long ago, when the COE prices are slackened, they're aready in the process of laying other traps to slaughter.

The last time when COE dropped, they follow suit with already sharpened parangs in the form of ERP gantries along major highways, and CBD routes. The traffic flow channelled to alternative routes, and that was quickly addressed with additional gantries covering those routes. Soon, the ERP gantries started to multiply like rabbits/hamsters.

ERP gantries so visible regulary on the streets, foreigners starting to use them as landmarks when they go about in town.

 

[Einfield]

This Gov's powerbase is in the huge civil services, many of them dead wood, with revenue drying up from all avenues, they have big problem feeding this army of useless extras, but if they are laid off, it will be a political disaster in the next GE.
So I expect the Gov to come up with all kinds of excuses and policies to riase revenue but their options are fast running out.

Those who worship them and expect them to help you, will be greatly disspointed.