Dealers not expecting rush of owners to give up cars for cash

[Ahyoo2002]

SINGAPORE: As of Monday afternoon, Singapore's Land Transport Authority (LTA) has received some 960 applications to get cash rebates from their Certificates of Entitlement (COE) and the Preferential Additional Registration Fee (PARF).

 

But car dealers have said that they are not expecting a rush of owners to give up their cars for cash.

 

Jackson Lee, managing director of Jia Leong Trading, said: "Some of them might give up because of petrol... inflation... some of them want to be more economical (and) give up the car, but I think (the number is small)."

 

"For the first kind of people, whose vehicle is fully paid (up), this would serve as an advantage to them because they can exchange their PARF paper for full cash with LTA," said Jerry Ong, Manager of Auto Inn.

 

"But for people with outstanding loans, it won't make much of a difference because dealers like us, we've got to come up with the money to fully settle their cars for them."

 

In Singapore, a car's PARF value is the amount credited to motorists who scrap their cars before its 10th year.

 

A COE is the pre-requisite before anyone can buy a car, awarded through a bidding system.

 

As of Monday, car owners have the option to exchange their COE and PARF rebates for cash.

 

The move, announced in March, is aimed at reducing the car population and have Singaporeans turn to public transport.

 

Dealers have said it is still too early to say what car owners will do, as opinions differ among individuals.

 

Phoebe Lim, a car owner, said: "I feel very handicapped without a car, (therefore) whether with or without the rebate, I will still drive. Since I got my licence five years back I've never taken public transport, so no (I wouldn't exchange my car for cash)."

 

"If the public transport is good enough, yes I think I would," said another car owner, Andrew Ong. "I balance the two together, I value the cash rebate, I can have a saving, I can have money in my pocket, so why not?"

 

But whether more people will give up their cars for cash in the days ahead remains to be seen.

 

- CNA/yb

[Shull]

"But for people with outstanding loans, it won't make much of a difference because dealers like us, we've got to come up with the money to fully settle their cars for them."

 

i tot it's the owners that need to settle the loan? how come become dealers?

[Jeffang]

the owner got no money to settle the loan, so over trade with the dealers...

so dealer need to come up with money to fully settle those car... then they earn from there...

[Husky]

Once the circle line is up and running, I guess a lot more people will find it platable to give up their cars.

[Thug]

...platable?

[Husky]

Oops...typed too fast...palatable = agreeable or acceptable to the mind (wwwebster)

[Ccssgm]

Benefit to No Outstanding Loan Car Owner

[Ahyoo2002]

"But for people with outstanding loans, it won't make much of a difference because dealers like us, we've got to come up with the money to fully settle their cars for them."

 

i tot it's the owners that need to settle the loan? how come become dealers?

 

[Ahyoo2002]

the owner got no money to settle the loan, so over trade with the dealers...

so dealer need to come up with money to fully settle those car... then they earn from there...

 

If you realy give up car, how to ask dealer to settle for you?

[Ahyoo2002]

Yah, I watch the news about this on Ch 8 yesterday, the car dealers said : "Many people can not give up, they need to top up money if they give up. And, not small amount, they need to top up big amount to give up car as many stuck with 10 years loan".

 

To me, this scheme looks good on paper and earn credit for someone who propose it to prove that they are "sincere" about something

[Ccssgm]

Same as Changing New Car without Top Up Cash

[Roh96]

Actually what is the difference between with and without this new rule? Those owners still got to find ways to sell/export the car body right? Why not sell straight to dealers at paper+body like we used to do in the past, less hassle and headache.

[Ahyoo2002]

Changing car w/o Top up cash meaning you are in deeper trouble.

 

But this one, not much diff to people lah.

[Ahyoo2002]

Old: paper+body - % for paper ( I heard can be as high as 7%)

New: paper+body

[Mzrmazda3]

Benefit to No Outstanding Loan Car Owner

 

Agree with you Bro and also those whom wanna give up driving after their loan is fully paid up

[Sunrise]

the dealers are telling only one side of the story. if a car is scrapped, the coe balance, parf rebates are paid back to the financing co. before 1 sep, these are not cash, and therefore there is a discount of about 5% to convert it to cash. So those who still have outstanding loan will need to top up a even larger amount to cover the discount as well. After 1 sep, there is no need for this discount.

 

If your ride is not on loan and exporting your ride, the offer from an exporter will now be higher, because there is no need to factor the discount for converting the paper parf etc to cash.

[Schneider79]

Yah, I watch the news about this on Ch 8 yesterday, the car dealers said : "Many people can not give up, they need to top up money if they give up. And, not small amount, they need to top up big amount to give up car as many stuck with 10 years loan".

 

To me, this scheme looks good on paper and earn credit for someone who propose it to prove that they are "sincere" about something

 

I would say it's a "good move" at the correct timing.

 

Last time, compulsory 30% downpayment for 7 years loan max. Everyone gets back money and able to change car within 2-3 years.

 

Now they had allowed 100% with 10 years loan, everyone cannot change car then they implement this policy.

[Leepee]

Assume this new scheme can save the owner 5-7%....how much is that?

5% of $15k(cheap Jap car) = $750.

5% of $55k (ex Jap/conti car) = $2750.

 

Once again the implementations will benefit the richie rich more!