COE and Car Prices

[Musicwhiz]

Hi GG,

May I know the date of this article? Is it today - March 25, 2013?

As for your comment on where Singaporeans made their money, my immediate first-thought would be - property. Either that, or appreciating property prices have conferred the "wealth effect" onto people who are now more willing to open their wallets to purchase big-ticket items.

The article says people are more interested in big cars - could it be because big car COEs are now lower than small cars? But this is offset by the higher ARF.....

If I may add a statement of my own - it never fails to surprise me when I read about Singaporeans' seemingly instatiable appetite for swanky new cars, even if cars here do cost an arm and a leg. It's not so much about the money (which I know people here have), it's more for the prestige and "boast" factor I believe.

[greengiraffe]

Hi MW,

The article is published today.

Whatever it is, never under-estimate the wealth of Singaporean. Years of asset inflation and liberal migrant policies have probably contributed to the change in Singapore's social fabric.

We just have to MYOB.

Cheers
GG

Hi GG,

May I know the date of this article? Is it today - March 25, 2013?

As for your comment on where Singaporeans made their money, my immediate first-thought would be - property. Either that, or appreciating property prices have conferred the "wealth effect" onto people who are now more willing to open their wallets to purchase big-ticket items.

The article says people are more interested in big cars - could it be because big car COEs are now lower than small cars? But this is offset by the higher ARF.....

If I may add a statement of my own - it never fails to surprise me when I read about Singaporeans' seemingly instatiable appetite for swanky new cars, even if cars here do cost an arm and a leg. It's not so much about the money (which I know people here have), it's more for the prestige and "boast" factor I believe.

[smallcaps]

say a camry 2006 new model for instance. the price now is ard 45-48k. end value maybe ard 17k. so max loss is 10kpa. the loss is controlled n fixed for a 7y car. but if can get at 40k, at 8kpa, i think its becomes quite a compelling deal.

Currently 5 camry 2006 asking for below 40k. Let's see if the count starts increasing...

http://www.sgcarmart.com/used_cars/listi...2006&AVL=2

i think those below 40k are old model. the 2006 camry 2.4 keyless one, shd be able to get ard 45k.

Yes, you are right. Currently 1x Camry 2006 G at that price:

http://www.sgcarmart.com/used_cars/listi...L=2&TO=Any

Now got 4

[paullow]

hi smallcaps, those are PI models. the borneo ones still up there.

[smallcaps]

hi smallcaps, those are PI models. the borneo ones still up there.

ic, thanks for the info. May I ask how to know whether PI or borneo?

[paullow]

hi smallcaps, those are PI models. the borneo ones still up there.

ic, thanks for the info. May I ask how to know whether PI or borneo?

the front/rear lights a bit diff n the front engine grill. u can google n check it out.

[Musicwhiz]

The Straits Times
www.straitstimes.com
Published on Mar 28, 2013
Small-car COE price hits 6-month low, big-car premium soars

By Christopher Tan

THE certificate of entitlement (COE) premium for cars up to 1,600cc fell by 14 per cent to a six-month low of $64,209 in the latest tender yesterday.

But the premiums for bigger cars - those above 1,600cc - bounced back from their sharp fall two weeks ago, as buyers took advantage of price cuts at several showrooms.

The moves have corrected a rare anomaly which occurred at the last round of bidding. Two weeks ago, the COE price for the larger-sized cars dived by almost 40 per cent to end almost $17,000 below the premium for smaller, cheaper cars.

Motor traders said the sharp drop sparked strong interest in bigger cars, which in turn caused their COE premium to soar by 27.2 per cent yesterday to finish at $73,900. The price for Open COEs, which can be used for any vehicle but ends up mainly for bigger cars, rose by 12.8 per cent to end at $73,301.

Aggressive promotions by BMW, Mercedes-Benz and Audi fuelled the frenzy for bigger cars, observers said. BMW, last year's bestseller, is trailing Mercedes and Volkswagen in third place, and is trying hard to catch up.

According to Land Transport Authority figures, Mercedes is leading the pack with 804 cars registered in the first two months, followed by 545 by Volkswagen and 485 by BMW. Mercedes is clearing its stock of E-class sedans before a facelifted model arrives around mid-year. Even Audi is in the fray, with an aggressive campaign for its A6 executive sedan.

Motor Vehicle Traders Association secretary Raymond Tang said: "There has been strong orders for bigger cars... 80 per cent to 90 per cent of new bookings were for these cars."

Industry watchers reckon buyers of bigger cars are usually more liquid, and so less affected by new rules that restrict car loans to 50 per cent of the purchase price and repayment period to five years. Before this ruling kicked in on Feb26, loans could be up to 100 per cent, and over 10 years.

Meanwhile, commercial vehicle premiums settled at $54,111 yesterday, 0.4 per cent higher. Motorcycle COE prices inched up 0.7 per cent to close at $1,909.

christan@sph.com.sg

[opmi]

should see better value in used car market, than new cars.

[cfa]

Minister Lui TY said wait till 2015 then can have bargain price.

[Musicwhiz]

The Straits Times
www.straitstimes.com
Published on Mar 29, 2013
Prices of big cars rise by up to $14,000
Traders pass on higher COE premiums; prices of small cars hold steady or drop

By Royston Sim And Jermyn Chow

THE prices of bigger, mass-market cars rocketed yesterday - some by as much as $14,000 - as motor traders passed on higher certificate of entitlement (COE) premiums from the latest tender.

The COE premiums for cars above 1,600cc had soared by 27.2 per cent since the tender closed on Wednesday to finish at $73,900, while the premium for Open COEs rose by 12.8 per cent to $73,301. The prices of smaller cars either held steady or went down after the COE rate for cars up to 1,600cc fell by 14 per cent to $64,209.

For instance, Toyota agent Borneo Motors reduced the cost of a Corolla Altis 1.6 from $133,988 to $127,988, but ramped up the price of the new Camry 2.0 by $10,000 to $178,988.

Kia agent Cycle and Carriage also raised prices for its larger cars. The Optima K5 2.0 now costs $14,000 more at $143,999.

Volkswagen did not change the list price of its Category A cars such as the Golf 1.4 TSI. A spokesman said it had dropped them in the last round in anticipation of the COE falling. But it has raised prices of its Category B cars such as the Passat 1.8 TSI by $5,000.

Audi did not make any price revisions. An Audi A6, one of its hot sellers, now costs $209,888.

Observers expect showroom traffic to remain healthy over the weekend and say there will be increased interest in smaller cars.

Mr Ron Lim, general manager of Nissan Agent Tan Chong Motor, believes COE premiums have not stabilised yet. He noted that loopholes which allow credit companies and other financial institutions to provide easy financing for car buyers have not been plugged.

Until this happens, the real impact of car loan restrictions will not be reflected, he said.

Meanwhile, used-car dealers continue to struggle and have turned to the authorities for help.

The Singapore Vehicle Traders Association (SVTA) office-bearers met the Monetary Authority of Singapore officials yesterday to discuss the loan curbs, which took effect on Feb 26 and capped loans to 50 or 60 per cent of a vehicle's purchase price. Second-hand vehicle prices have not shifted much after the latest tender, although some firms have increased the cost of bigger cars slightly in tandem with the higher premium.

Apex Trading managing director Thomas Lim said the volatile COE premiums make it difficult for dealers to tweak prices.

"We cannot push the prices of used cars up by much because the prices for new cars have already plunged so low after the curbs and the recent COE bidding results."

For instance, a one-year-old BMW 320 now costs $180,000, up from $150,000 before the latest COE bidding exercise.

Like most used-car dealers, Mr Thomas Lim is still reeling from the loan restrictions and has seen profits plunge by more than 60 per cent. "It's like a nightmare that gets worse every two weeks when COE results come out."

Yesterday's meeting, which lasted for about 75 minutes, began with the association explaining how the loan curbs had hit the used car industry hard.

SVTA vice-president Eddie Loo called the summit fruitful.

The MAS has told the association it will continue to monitor the market and find ways to help used-car dealers. It also reiterated that the curbs are not permanent, Mr Loo added.

He said: "Even though there were no solutions, they were willing to listen and engage us."

roysim@sph.com.sg

jermync@sph.com.sg