Small Big Bosses KPKB on Sir Tat Good Intention to make Car Ownership more sustainable for all, Kym Boss John??

[k1976]

Singapore car dealers: COEs will hurt sales​

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Singapore’s car dealers point to falling prices and an injection of 20,000 certificates of entitlement (COE) will hurt sales. Singapore’s Land Transport Authority (LTA) injected up to 20,000 more COE’s this year. According to Channel News Asia, local car dealers expect this injection and falling car prices to “hurt” their businesses. The rollout of the injection is expected to continue until February 2025 across all of Singapore’s 5 vehicle categories. This injection is a result of Singapore’s Electronic Road Pricing 2.0 project.

CERTIFICATE OF ENTITLEMENT​

COEs are certificates that authorise a Singaporean citizen to own a vehicle. According to the Business Times, these certificates are divided into five categories; Category A (“mainstream cars”), Category B (“larger, more powerful cars”), Category C (“buses and commercial vehicles”), Category D (“motorcycles”), and Category E (“the open category”).
To keep the country ‘car-lite,’ the LTA announced its decision to inject 20,000 certificates last October 29. This injection is the first in more than two decades. The prices of COEs have also lowered in the same week. The organisation has noted that their decision is possible due to a few factors.
First, the LTA cited “evolved travel patterns.” Since the COVID pandemic, more Singaporeans are using public transportation. Second, work-from-home arrangements have also reduced road traffic. These factors have left more space for cars on the country’s busy roads.” Lastly, the LTA expanded Singapore’s public transportation system, specifically its railway, by 18 per cent.

BOON OR BANE?​

While the LTA has not yet announced a start date for the injection, dealers urge the organisation to establish a definitive date. In addition to this, Singapore’s car dealers request the LTA to “provide more clarity” on the distribution of the COEs across the five categories. However, the organisation will only release distribution information after it has carefully analysed traffic data and vehicle registration rates.
Car prices are expected to fall; thus, the LTA predicts the increase in COEs to create a hike in car sales. However, Singapore’s car dealers anticipate the opposite effect in the short-term. According to dealers, customers might “wait-and-see” before they make their purchases. Analysts also predict that Singapore’s car market will be negatively affected by the COE injection.
“We might face a short-term slowdown where people are just fearful that they are buying cars at a super high price,” said Chief Operating Officer of Cartimes Automobile, Benjamin Loo.

 

[k1976]

MONEY​

Will COE Prices Drop During A Recession? ​

Car sales may fall during a recession, but would COE prices follow suit?

• 
• by
  Brent Wong
• October 19, 2022

The Certificate of Entitlement (COE) prices have been hitting new highs ever since the reduction in pandemic measures. With the tightening of COE supply and an economy with rising interest rates (and increasing recessionary fears), what does this mean for COE prices?
We examine the data to find out about the relationship between past recessions and COE prices.
Read Also: Guide To Understanding How The COE Bidding System In Singapore Works

Relationship Between Major Financial Crisis & COE Prices​

For this comparison, we will look at data for the COE prices and Singapore’s GDP growth rate from 1999 to 2022. To represent most of the car market in Singapore, CAT A & CAT B data is used.
Note: CAT A represents vehicles ≤ 1600cc & 130bhp, or 110kW. CAT B. CARS > 1,600cc or 130bhp, or 110kW.

There were 3 major financial crises between 1999 – 2022: the Dot Com Bubble, the Global Financial Crisis and the COVID-19 market crash.

*GDP data extracted from “The World Bank” website. *COE data extracted from Travlex
During each of these notable financial crises since 1990, the decline in GDP growth rate corresponded to a decline in COE prices.
Generally, during a recession, the automotive industry will see a fall in overall sales due to its high-ticket price. Just like its counterparts in the consumer discretionary sector, as demand from consumers falls. Thus, with a fall in car sales, COE prices naturally would decline.
However, there are periods in-between crises where the prices of COE do not track Singapore’s GDP growth. This is because of the other factors that affect the COE prices in Singapore.

 

[k1976]

COE Prices Are Affected By Government Policies​

In Singapore, the government tightly regulates the number of vehicles on the road. Starting in 1990, the Vehicle Quota System (VQS) system was introduced to reduce vehicle overpopulation in our land-strapped nation. Under this system, bidders will bid on the amount they are willing to pay for their COE which is limited by a quota.

Originally, bidding was done through a closed bidding system where all successful bidders would have to pay the lowest successful bid price in their category. However, this led to fluctuations in the prices due to the lack of transparency. By 2002, the COE open bidding system replaced the closed bidding system.

Reduction In Supply: Available COE Quota ​

From 1 August 2022, the supply of COE will be calculated as a rolling average of two quarters, rather than the number of deregistrations in one quarter. This effectively drops the supply rate by 11.5% for the August to October 2022 COE exercise.

 

[k1976]

LTA has also recently announced that between November 2022 to January 2023 all supplies of COE categories will be reduced, with a total drop of 13.7% in the total supply from the previous quarter.

The reduction in quota supply would likely cause COE prices to raise. As seen in the following charts, the historical fall in the COE quota corresponded with increasing COE prices.

Cat A COE Quota 

*Relationship between COE quota and COE prices. Source: sgcharts

Cat B COE Quota

*Relationship between COE quota and COE prices. Source: sgcharts

Read Also: Cost Guide To Buying A Commercial Vehicle In Singapore

 Reduction In Supply: Net Zero Growth Policy​

In 2018, LTA announced the cession of the vehicle growth rate factor and introduced the net zero growth rate policy. This is to limit the expansion of the road network (which takes up 12% of Singapore’s land) and accommodate other competing needs for land use. Since then, the LTA has not changed their stance on this policy and has since extended it to 31 January 2025.

This has reduced the amount of COE quota supply available in the market and therefore driving prices up.

 

[k1976]

Changes In Demand​

From time to time, the sway of demand from the public affects the overall price of COE. This usually results in more bids than the number of available quotas (see chart above)

Reasons for the changes in demand include an influx of wealthy foreigners, greater incentives for electronic vehicles (EVs) and many Singaporeans still wanting to own cars.

In times of tight supply and high prices, demand may slowly wane over time as Singaporeans turn to alternatives to car ownership. However, COE prices remain at the moment due to high demand and tight supply.

 

[k1976]

Share of COEs secured by car-leasing firms falls to 10% so far in 2024: Chee Hong Tat​

Only 2 per cent of successful bidders for car COEs were foreigners in 2023 and 2024. PHOTO: ST FILE

Lee Nian Tjoe
Senior Transport Correspondent
UPDATED

NOV 12, 2024, 11:27 PM

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SINGAPORE – One-tenth of the certificates of entitlement (COEs) for cars secured between January and October 2024 went to car-leasing companies. This is down from 24 per cent in 2023 and 26 per cent in 2022.
Transport Minister Chee Hong Tat revealed these figures in Parliament on Nov 12. He said that among the main drivers of the increase in COE premiums in recent quarters was likely the strong demand from individual Singapore buyers, and not foreigners or car-leasing companies.
Only 2 per cent of successful bidders for car COEs were foreigners in 2023 and 2024, compared with 3 per cent in 2022.

 

[k1976]

Separate COE category for private hire cars 'not a straightforward exercise': Chee Hong Tat​

Difficult trade-offs.


Hannah Martens

November 13, 2024, 01:32 PM​

Minister for Transport Chee Hong Tat explained that having a separate Certificate of Entitlement (COE) category for private hire cars is "not a straightforward exercise."
"Demand for COE from car leasing companies can vary quite a bit from quarter to quarter and from year to year. It is difficult to ascertain upfront the quota required to meet the needs of point-to-point drivers and commuters," Chee explained in parliament on Nov. 12.

 

[k1976]

Chee Hong Tat on government securities and Treasury bills​

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In Parliament on Tuesday (Nov 12), Second Minister for Finance Chee Hong Tat proposed to raise the ceiling for issuing government securities and Treasury bills by S$450 billion to over S$1.5 trillion. He said the proposed limit is expected…see more

 

[k1976]

Machismo like that ERP2.0 will rendered Private Car like Rental Car Liao???​

Singapore

More COE injections can be considered in future if distance-based charging is implemented: Chee Hong Tat​

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Singapore

More COE injections can be considered in future if distance-based charging is implemented: Chee Hong Tat​

The government’s car-lite vision does not mean that Singapore’s total car population cannot increase, Transport Minister Chee Hong Tat said.

Vehicles in Singapore. (File photo: CNA/Syamil Sapari)
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Justin Ong Guang-Xi
12 Nov 2024 02:56PM (Updated: 14 Nov 2024 10:12PM)
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SINGAPORE: Further injections of Certificates of Entitlement (COEs) could be considered if distance-based charging is implemented in the future, said Transport Minister Chee Hong Tat in parliament on Tuesday (Nov 12).
This is aside from the injection of up to 20,000 COEs in the next few years across all vehicle categories, starting next February.
Mr Chee made clear the upcoming injection is not linked to the implementation of distance-based charging.
“We have not made a decision on whether to implement distance-based charging, though ERP 2.0 gives us the option to do so,” said Mr Chee in response to questions from Members of Parliament (MPs) on the injection of COEs.
“We will need to study this further, including with the data from ERP 2.0, as there are trade-offs we need to think through carefully.”
He added that if distance-based charging were to go ahead, it would give the Land Transport Authority (LTA) an “additional tool to manage congestion”.
“There is scope to consider a further injection of additional COEs in tandem with the implementation of distance-based charging,” he said.

 

[jsctan]

Cannot allow car distributors to bid. Only potential car owners can bid.
Now the bidders bid high at $100,000. From what I gathered, the lowest and in between COE distributor bid take in the difference as profit
Since the customers agreed before bidding a COE price, the difference is not returned to customers. If customer bids, the car sellers will
try not to sell the car to you, so you got to bid through distributors and they rake in the difference.

 

[k1976]

Cannot allow car distributors to bid. Only potential car owners can bid.
Now the bidders bid high at $100,000. From what I gathered, the lowest and in between COE distributor bid take in the difference as profit
Since the customers agreed before bidding a COE price, the difference is not returned to customers. If customer bids, the car sellers will
try not to sell the car to you, so you got to bid through distributors and they rake in the difference.

Like that Small Big bosses Jiak Sai Liao

 

[congo9]

Knn...they can just jack the car price up and sell their car.
Why allow all these big and small time tao Kay earn ?

 

[Loofydralb]

COE is a rigged system. It benefits the rich and clever ones.

The rest of you peasants will pay through the nose for transport needs.

 

[k1976]

Soon buy car can test drive chiobu sale rep??

 

[jsctan]

Like that Small Big bosses Jiak Sai Liao

All car owners jiak sai. Pawn by CS, Pawn by car distributor, pawn by sinkies. Sleeping well tonight.