LTA stands firm, COE prices jump

[Ithunk]

SINGAPORE - Even as premiums for three categories of Certificates of Entitlement (COEs) surged further in the last open bidding exercise for the year, the Land Transport Authority (LTA) said it is standing firm despite appeals for its intervention to adjust the COE supply.

 

Yesterday, the highest increase was in the Open category - which rose by some $11,000 to hit $76,102. The premium for big cars - those above 1,600cc - is now $72,001, up about $9,500.

 

An LTA spokesperson said it had received appeals from the Motor Traders Association (MTA) to look into increasing the COE supply.

 

But, the spokesperson reiterated: "As replacement COEs make up a large share of the total COE quota, LTA has explained that the COE quota reduction seen in recent months was largely due to the slowdown in de-registrations."

 

Despite suggestions that the Government should prevent a sharp reduction in the COE quota, the spokesperson said "we have to be mindful of the attendant downstream impact if we try to intervene in anticipation of the lower COE supply".

 

One key consideration in COE policy is to ensure that vehicle population grows at a sustainable level so roads can cope.

 

Said the spokesperson: "We have to leave it to car-buyers to decide how much they are willing to pay for a COE to own a car. If we intervene in a rising market, we will end up with congestion problems downstream."

 

Rising premiums, especially in the small car category, will see most private buyers in this category shying away. COEs for small cars fell to $46,129 yesterday.

 

But Tan Chong Motor Sales general manager (sales and marketing) Ron Lim said: "There's a chance of it hitting close to about $50,000 the next time around (in February when many expect another round of quota cuts)."

 

As for cars above 1,600cc, Hybrid Motors sales manager Geraldine Lim predicted that the COE could hit $100,000 in February - and the anticipated spike could spur a buying frenzy as Chinese New Year approaches. Said Ms Lim: "Because of the festive season, people are still buying ... in case the COE jumps further."

 

In general, dealers say they will focus on the commercial car market next year, as COE prices in this category are more stable. The COE for this category went up by $1,500 to about $33,500.

 

Skyrocketing COE prices have also hit parallel importers hard, with many of them reporting falls in sales of between 30 and 50 per cent. Cars and Stars managing director Jesse Tan said the firm has now turned to the business of rentals - wedding cars, limousines and exotic cars - to stay afloat. With additional reporting by Leong Wee Keat and Saifulbahri Ismail

 

Source

http://www.todayonline.com/Singapore/EDC10...COE-prices-jump

[Swingarm]

they eat to much already now have to reduce but still want to eat that amount so they will stand. Unless they can source out another way to get that amount, then i think they will consider

[The_Bear]

Otherwise, the title of your thread will be:

 

COE stand firms, LTA jumps!

[Thestig]

At long as they keep on adding more people to this tiny rock, then they shouldn't be blaming the citizens for the rise in prices. Which also should tell you to how to cast your vote.

[SimonTan]

At least the rule is firm.

Is suddenly change then it will be unfair for car buyers who buys now, with the intention to avoid the quota cut in march!!

 

 

LTA well done.

[Mustank]

In general, dealers say they will focus on the commercial car market next year, as COE prices in this category are more stable. The COE for this category went up by $1,500 to about $33,500.

 

hopefully VW brings this in:

 

 

 

http://en.wikipedia.org/wiki/Volkswagen_Amarok

 

Engines

The Amarok will be powered by a range of Turbocharged Direct Injection (TDI) common rail diesel engines, and Fuel Stratified Injection (FSI) petrol engine, with a FlexFuel (ethanol) option for the Brazilian market.[11]

 

As of 2010, the engine range consists of two 2.0L Turbocharged Direct Injection (TDI) common rail diesel engines which is taken from Golf, Jetta and Tiguan, it has been tuned for more torque but less power; the entry-level version produces 90 kW (122 PS; 121 hp) which develops a maximum torque of 340 N

[13177]

In the article, LTA has explained that the COE quota reduction seen in recent months was largely due to the slowdown in de-registrations. So i think if MTA wants COE supply to increase, then shld urge more car owners to deregister their cars lor.

 

 

[Acemundo]

they are putting the blame on owners not deregistering the car fast enough but they should look in the mirror and ask themselves why

 

1)when the demand was down during a certain period, they took the easy way out of removing the need for 30% downpayment

2)due to the ARF and PARF is calculated, the plunge of paper value and hence market value from the day the car is registered is quite substantial

3) factor #1 make people over borrow while factor #2 makes the underlying value of the car much less than the amount of the loan

4) as such, most average people now can only deregister their cars from 7 years onwards

 

during the earlier days of the COE system, 30% DP at least fairly reflects the pluunge in market value of the cars. so people that were able to afford the 30% DP were also able to sell or deregister the car within 3 -5 years because the value of the underlying asset more or less matches the outstanding value fo the loan.

[Happily1986]

they are putting the blame on owners not deregistering the car fast enough but they should look in the mirror and ask themselves why

 

1)when the demand was down during a certain period, they took the easy way out of removing the need for 30% downpayment

2)due to the ARF and PARF is calculated, the plunge of paper value and hence market value from the day the car is registered is quite substantial

3) factor #1 make people over borrow while factor #2 makes the underlying value of the car much less than the amount of the loan

4) as such, most average people now can only deregister their cars from 7 years onwards

 

during the earlier days of the COE system, 30% DP at least fairly reflects the pluunge in market value of the cars. so people that were able to afford the 30% DP were also able to sell or deregister the car within 3 -5 years because the value of the underlying asset more or less matches the outstanding value fo the loan.

 

Bro, i have a better word to help describe our predicament here.

 

Mismanagement

[Acemundo]

makes us look stupid to pay world class salaries for them to mismanage

[Djdp]

Next time we'll see many old cars, and many luxury, rare & exotic cars on the rd.

 

The system only helps the rich one n bring down those average n below.

 

Control price of property n not controlling COE? Seems like depend on where the $ flow to......

 

Hmmmm...

 

 

[13177]

Aiya, they want to make it car ownership here only for the rich. If u r not rich or only avg income, then u can forget abt owning a car. Car is a luxury item in sg, whereas housing is a necessity. Tht's y they control the housing price but not the car price.

Edited December 24, 2010 by 13177

[Turtlekar]

Wonder what car LTA driving? Hope history will not repeat.....SLA.....

[35lux]

Rich people can drive, very fair.

Car is always a luxury item in Singapore

What is "fair"? Why you are poor but there are so many rich guys out there?

[Zze121]

5 year later onwards many cars will be scrap, by then COE will go down again.

[Dennis]

There is no right or wrong on LTA, but something every drivers agreed on is an immediate reduction of cars on the road.

[C-K]

Not that I agree with this shi-tty COE system, but I have to give LTA a for standing firm in their policy and not being pro-business like what gahmen always does.

 

It won't be fair for those who recently purchase their vehicles if LTA agrees to the appeal made by a few cartels who have made a shytload of money for the past few years.

 

 

[Perrier]

Its a fair system. If you can afford to change car every 2-3yrs, then the COE won't matter so much. Afterall, $20k difference in COE value is only $6k more for that 3yrs. I am sure many of us know that selling a car within the first 5yrs depreciate the most, yet so many are comfortable to do that.

 

Many of us also knows that rule 78 is a milking machine for the institutions yet many car owners take up as much as 80-90% loan.

 

How many rich can there be to soak up these $70k COE? How many cars does the condo management allows these ppl to park at their residences or how many landed properties in general have more than 3 parking lots?

 

 

The car owners are the very people who rushed in and gives the car dealers mandate to bid through the roof. Don't compete with the rich. If new is too expensive, go for the used car that has a lower yearly depreciation.

 

If we want to be a sucker, we only have ourselves to blame.

 

Merry Christmas