There shud be a base price of $100,000 for COEs and minimum 50% financing or best 0% financing, i.e. no one shud be able to get a car loan, must pay all cash
There are too many cars on the roads and many people who don't need car buy one anyway to clog up the roads even when they can't afford it
http://www.businesstimes.com.sg/sub/news/story/0,4574,349583,00.html?
Jump in car COE premiums
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COE premiums for cars shot up yesterday because of a longer-than-usual interval between tenders - and an impending announcement regarding the mid- year quota review.
The first bidding exercise for September took place three weeks after the previous tender - a week longer than usual.
This allowed motor distributors to collect more orders, increase their demand for certificates of entitlement.
There also seems to be a rush to get a COE, because of speculation the quota will soon be cut by at least 10 per cent for the car categories. The announcement on the mid-year quota review is expected in two weeks.
As a result, Category A, for cars below 1,600cc, jumped $3,001 to $18,020 yesterday, while Cat B, for cars above 1,600cc, surged $2,999 to $19,289.
Cat E, the open category usually used to register big cars, climbed $1,925 to $19,830.
'Some Continental and Korean makes are enjoying fairly encouraging sales because of aggressive promotions and roadshows,' said a senior executive with a multi-franchise distributor. 'That is why Cat A and Cat B premiums have gone up.'
Demand for Japanese brands, in general, is still soft, because of their relatively higher prices, he said. The recent strengthening of the yen has boosted the list prices of Japanese vehicles.
Meanwhile, Cat C, for commercial vehicles, fell $1,500 to $16,001 yesterday, while Cat D, for motorcycles, rose $169 to $1,051.
The sales manager of a commercial vehicle dealership said that light commercial vehicle sales have been in the doldrums due to the high COE premium for this category.
But demand for heavy commercial vehicles is stable, due to the healthy construction sector.
There are too many cars on the roads and many people who don't need car buy one anyway to clog up the roads even when they can't afford it
http://www.businesstimes.com.sg/sub/news/story/0,4574,349583,00.html?
Jump in car COE premiums
Email this article
Print article
Feedback
COE premiums for cars shot up yesterday because of a longer-than-usual interval between tenders - and an impending announcement regarding the mid- year quota review.
The first bidding exercise for September took place three weeks after the previous tender - a week longer than usual.
This allowed motor distributors to collect more orders, increase their demand for certificates of entitlement.
There also seems to be a rush to get a COE, because of speculation the quota will soon be cut by at least 10 per cent for the car categories. The announcement on the mid-year quota review is expected in two weeks.
As a result, Category A, for cars below 1,600cc, jumped $3,001 to $18,020 yesterday, while Cat B, for cars above 1,600cc, surged $2,999 to $19,289.
Cat E, the open category usually used to register big cars, climbed $1,925 to $19,830.
'Some Continental and Korean makes are enjoying fairly encouraging sales because of aggressive promotions and roadshows,' said a senior executive with a multi-franchise distributor. 'That is why Cat A and Cat B premiums have gone up.'
Demand for Japanese brands, in general, is still soft, because of their relatively higher prices, he said. The recent strengthening of the yen has boosted the list prices of Japanese vehicles.
Meanwhile, Cat C, for commercial vehicles, fell $1,500 to $16,001 yesterday, while Cat D, for motorcycles, rose $169 to $1,051.
The sales manager of a commercial vehicle dealership said that light commercial vehicle sales have been in the doldrums due to the high COE premium for this category.
But demand for heavy commercial vehicles is stable, due to the healthy construction sector.
