Tips on Buying and Financing a CAR (in Singapore)

[CityFarmer]

So why has COE not crumbled yet?

I believe the answer lies in the inherent demand for cars as a showcase of one's wealth and status, and not just for practical means. We should also be aware that there are many cash-rich families who are willing to fork out the requisite 50% DP to own a car in order to ferry their family around.

And of course there's always the batch who can afford to borrow a significant amount to have the bragging rights to drive around this small island.

Since I have no desire to look good or to appear wealthy, I guess I will never own a car here?

Some colleague of mine, paid full for car without loan

It seems he was not an odd-one, but a small group of them of course.

[Porkbelly]

So why has COE not crumbled yet?

I believe the answer lies in the inherent demand for cars as a showcase of one's wealth and status, and not just for practical means. We should also be aware that there are many cash-rich families who are willing to fork out the requisite 50% DP to own a car in order to ferry their family around.

And of course there's always the batch who can afford to borrow a significant amount to have the bragging rights to drive around this small island.

Since I have no desire to look good or to appear wealthy, I guess I will never own a car here?

Some colleague of mine, paid full for car without loan

It seems he was not an odd-one, but a small group of them of course.

My belief is certainly incorrect then...

Looks like demand is very,very strong and not only that, the ability to finance the purchase is greater still!
With the supply of COE tightly controlled.. with every certificate, there seems to be 3 eager bidders with some instances of 6 bidders!

[opmi]

So why has COE not crumbled yet?

I believe the answer lies in the inherent demand for cars as a showcase of one's wealth and status, and not just for practical means. We should also be aware that there are many cash-rich families who are willing to fork out the requisite 50% DP to own a car in order to ferry their family around.

And of course there's always the batch who can afford to borrow a significant amount to have the bragging rights to drive around this small island.

Since I have no desire to look good or to appear wealthy, I guess I will never own a car here?

Some colleague of mine, paid full for car without loan

It seems he was not an odd-one, but a small group of them of course.

when did your colleague paid for car in full? 2009 or 2014?

[CityFarmer]

So why has COE not crumbled yet?

I believe the answer lies in the inherent demand for cars as a showcase of one's wealth and status, and not just for practical means. We should also be aware that there are many cash-rich families who are willing to fork out the requisite 50% DP to own a car in order to ferry their family around.

And of course there's always the batch who can afford to borrow a significant amount to have the bragging rights to drive around this small island.

Since I have no desire to look good or to appear wealthy, I guess I will never own a car here?

Some colleague of mine, paid full for car without loan

It seems he was not an odd-one, but a small group of them of course.

when did your colleague paid for car in full? 2009 or 2014?

The known case was around 2010/2011, but it might not be the last case.

[opmi]

So why has COE not crumbled yet?

I believe the answer lies in the inherent demand for cars as a showcase of one's wealth and status, and not just for practical means. We should also be aware that there are many cash-rich families who are willing to fork out the requisite 50% DP to own a car in order to ferry their family around.

And of course there's always the batch who can afford to borrow a significant amount to have the bragging rights to drive around this small island.

Since I have no desire to look good or to appear wealthy, I guess I will never own a car here?

Some colleague of mine, paid full for car without loan

It seems he was not an odd-one, but a small group of them of course.

when did your colleague paid for car in full? 2009 or 2014?

The known case was around 2010/2011, but it might not be the last case.

back then still ok. paid cash in 2014 then solid. 1 new honda jazz already 100k. then like 1 year salary for average household.

[DP28]

I believe that if they separate the COE and the cost of the car from loans, i.e. no loans for COE, the prices will crumble.
But they will never do that... its an extremely easy revenue!

Under current loan curbs (which is about 50%?) - you are already effectively paying in cash for an amount roughly equivalent to COE prices. For expensive cars, its even more. The assumption is the buyer has no offset for his new car price, from old car scrap etc.

So why has COE not crumbled yet?

Look around you.. These days there are more Bentley, RR, Lambo on the street. COE is no issue for these folks. I always have an impression that the normal society never have a road full of BMW and Mercedes but now I think we are almost getting there.. Either you own a conti.. or you dont at all.

[opmi]

^^ Iceland and Dubai has a lot of SUVs before it went bust.

There are so many Bentley or supercars bought each year in SG.
Not the main drivers for COE prices. On the hand, teachers and
civil servants are big buyers of cars. Just heard of a teacher friend
who change cars every year.

[Musicwhiz]

^^ Iceland and Dubai has a lot of SUVs before it went bust.

There are so many Bentley or supercars bought each year in SG.
Not the main drivers for COE prices. On the hand, teachers and
civil servants are big buyers of cars. Just heard of a teacher friend
who change cars every year.

It seems that in Singapore, the phrase "changing cars every year" make one sound exciting and refreshing, but the person probably doesn't realize how much depreciation he is suffering, and how much they are actually feeding the car salesmen and banks.

While it is true that teachers and civil servants do buy cars, I would attribute it to the "iron rice bowl" mentality. This doesn't mean that it's a good thing, though. Much can be saved just by spending wisely and ensuring one budgets properly.

[pianist]

Teachers seems loaded these days, plus they enjoy cheap school canteen food, free parking in school compound, can moonlight outside as private tutors, can do their master foc, it just too good to be fake?

[Big Toe]

As I know quite a number of car agents along the Leng Kee/Alexandra stretch, I am always curious why prices have not come down despite the curbs, who's actually buying them? This is what I gathered from some of them.

The profile of buyers have changed. Compared to earlier years, the buyers are more well to do with individual income well above>100K/yr. While the absolute cost of owning a car is high, it is less painful for this group. They are willing to swallow the high prices as it takes up a significantly lower portion of their total income. Higher ranked civil servants fall into this group and there is probably a significant number of them.

For the continental cars, they have a database of buyers who is currently driving their brand of car(i.e. merc) and some of the cars are near expiry. It is very likely that the buyer would make a repeat purchase if the car had served the buyer well.

The high prices also mean that they car agents have to work harder in finding the right customers and convincing them to buy one. They now need to filter the genuine buyer from the one that has little intention of getting one. Those who offer unrealistic COE prices are rejected straight away.