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Mar 25, 2010
Prices for new, used cars up
<!-- by line -->By Christopher Tan, Senior Correspondent
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STICKER prices in car showrooms are reflecting the new reality ahead of the COE supply cut.
A Toyota Corolla, for instance, now costs $80,000, up from $57,000 a year ago, after the marque's agent, Borneo Motors, raised prices to match COE increases. Nissan agent Tan Chong Motor has also raised prices, and others, such as Honda agent Kah Motor, are likely to follow.
Used car traders, sensing a spike in demand for their wares, have jumped on the bandwagon, kicking prices northward by about $5,000 to $7,000 per car. That has led to higher resale values, and an unusual situation.
Said Mr Neo Nam Heng, president of the Automotive Importers and Exporters Association: 'If you had bought a Toyota Wish in 2007, you would have paid about $62,000. Today, you can sell the car at $62,000 - no depreciation.'
But it would be a zero-sum game, as buyers would have to fork out more for a new ride. So some drivers, like Mr Chiam Yak Seng, have resolved to hang on to their vehicles.
The 50-year-old extended the lifespan of his nine-year-old Toyota Corolla by another 10 years last week, after paying just over $19,000 for the prevailing quota premium (PQP) - a sum based on a three-month moving average of a car's COE category.
Read also:
Prices for new, used cars up
<!-- by line -->By Christopher Tan, Senior Correspondent
<!-- end by line -->
<!-- end left side bar --><!-- story content : start -->
STICKER prices in car showrooms are reflecting the new reality ahead of the COE supply cut.
A Toyota Corolla, for instance, now costs $80,000, up from $57,000 a year ago, after the marque's agent, Borneo Motors, raised prices to match COE increases. Nissan agent Tan Chong Motor has also raised prices, and others, such as Honda agent Kah Motor, are likely to follow.
Used car traders, sensing a spike in demand for their wares, have jumped on the bandwagon, kicking prices northward by about $5,000 to $7,000 per car. That has led to higher resale values, and an unusual situation.
Said Mr Neo Nam Heng, president of the Automotive Importers and Exporters Association: 'If you had bought a Toyota Wish in 2007, you would have paid about $62,000. Today, you can sell the car at $62,000 - no depreciation.'
But it would be a zero-sum game, as buyers would have to fork out more for a new ride. So some drivers, like Mr Chiam Yak Seng, have resolved to hang on to their vehicles.
The 50-year-old extended the lifespan of his nine-year-old Toyota Corolla by another 10 years last week, after paying just over $19,000 for the prevailing quota premium (PQP) - a sum based on a three-month moving average of a car's COE category.
Read also:
