COE and Car Prices

My personal view of COE is it has a medium correlation with market sentiments. When market are overly irrational/exhuberent as evident by stock prices, so too are our COE prices. When Mr. Market gets too depressed like in 2008,2000, 1998, so too are our COE prices. Now because of cheap credit and people chasing their dreams, COE prices are shooting up. And if i were to venture a guess, COE will rise over the entire year and PAP wouldn't even bother putting in cooling measure for this "asset".

To me, COE has the price of an equity and yet is a depreciating asset. For those hoping to own a car, follow Warren Buffett's advice: "When people are greedy, be fearful and when people are fearful, be greedy." It totally makes sense in almost every asset class (COE included)

(09-05-2013, 11:49 PM)CY09 Wrote: My personal view of COE is it has a medium correlation with market sentiments. When market are overly irrational/exhuberent as evident by stock prices, so too are our COE prices. When Mr. Market gets too depressed like in 2008,2000, 1998, so too are our COE prices. Now because of cheap credit and people chasing their dreams, COE prices are shooting up. And if i were to venture a guess, COE will rise over the entire year and PAP wouldn't even bother putting in cooling measure for this "asset".

To me, COE has the price of an equity and yet is a depreciating asset. For those hoping to own a car, follow Warren Buffett's advice: "When people are greedy, be fearful and when people are fearful, be greedy." It totally makes sense in almost every asset class (COE included)

When the "BIG TIDE" comes everyone thinks he is a genius. If the tide ebbing normally, most people are safe. But if tide turns suddenly into a Tsunami.........

Belated improvement... With technology advances, small capacity car can be quite powerful nowadays.

A surcharge on second car or more will make car ownership more equitable.

But ERP by satellite... so pre-trip planning no longer necessary? I am no so sure on its necessity...

COE system to be improved

SINGAPORE — The authorities are looking into improving the existing Certificate of Entitlement (COE) system to ensure greater equity among car buyers, said Minister for Transport Lui Tuck Yew at a visit to the Marina Coastal Expressway this morning.

With a greater number of luxury car makes belonging to Category A, the Ministry of Tranport is looking to refine the COE category for small cars (below 1,600cc) and bigger cars so that buyers of mass-market cars need not compete directly with buyers of luxury cars.

http://www.todayonline.com/singapore/coe...e-improved

Quote:A surcharge on second car or more will make car ownership more equitable.

I can count the no. of possible loopholes if the above is implemented.
Just like currently how a rich couple works around the ABSD for second property.

(16-05-2013, 11:32 AM)yeokiwi Wrote:

Quote:A surcharge on second car or more will make car ownership more equitable.

I can count the no. of possible loopholes if the above is implemented.
Just like currently how a rich couple works around the ABSD for second property.

Based on registered residential address, and the property must not be a rental property?

Quote:Options include considering new criteria such as engine power, or putting in additional requirements, such Category A cars not exceeding a certain engine power rating, said Mr Lui.

LTA should consider using OMV to differentiate car for cat A or B instead of engine power. High Engine power does not equate to luxury car, i.e. subaru.

High OMV normally tie to lucury car.

I think there is a good chance that LTA will use OMV for COE category. This will bring it in line with the ARF which is set at different rate for OMV < $20k, $20k < OMV < $50k, and OMV > $50k which may see a small car category returning.

(16-05-2013, 12:34 PM)Ray168 Wrote:

Quote:Options include considering new criteria such as engine power, or putting in additional requirements, such Category A cars not exceeding a certain engine power rating, said Mr Lui.

LTA should consider using OMV to differentiate car for cat A or B instead of engine power. High Engine power does not equate to luxury car, i.e. subaru.

High OMV normally tie to lucury car.

I will prefer differentiation base on engine power, rather on OMV. Otherwise we will see "naked" car imported with minimum OMV.

Opinion from one doesn't like Subaru look and feel

(16-05-2013, 11:43 AM)NTL Wrote:

(16-05-2013, 11:32 AM)yeokiwi Wrote:

Quote:A surcharge on second car or more will make car ownership more equitable.

I can count the no. of possible loopholes if the above is implemented.
Just like currently how a rich couple works around the ABSD for second property.

Based on registered residential address, and the property must not be a rental property?

So anyone who does not own a property is not allowed to buy car?
It also heavily penalizes those multi-generation families or rather discourage the kids from staying with their parents.

Even with the above measures, I suppose some smart alecks are more than willing to buy a car on behalf of someone for a token sum of money.

(16-05-2013, 01:25 PM)yeokiwi Wrote: Even with the above measures, I suppose some smart alecks are more than willing to buy a car on behalf of someone for a token sum of money.

Exactly. Those who are not able to afford one in the first place will sell their COE (Certificate of Exemption - from surcharge) to the rich. Both party get what they want but the state lose.