My Take on COE System and transferable issues

[Vblaster_w211]

The COE quota system is sound. The COE bidding system is not.

 

And yes, we need to optimise land transportation as a whole.

[Timbuktu]

  On 8/14/2012 at 8:47 AM, Vblaster_w211 said:

Once the measures are introduced, there will be a drop in COE prices. It's about bidding systems and source of readily available cash (through long term loans) or not. Really quite simple to understand.

 

This benefits all except Government in terms of revenue.

Not sure about that.

This would entice the rich and new HNW FTs to buy even more cars to add on.

They will be the ones that will circumvent and take over most of the cheapened COEs.

And they have the ability to bid higher-than-average, to guarantee their securing COEs.

 

And they will unlikely be impacted by any MAS changes on loan regulations.

Cars so cheap ... buy more!

[Vblaster_w211]

The rich is already buying no matter what the COE is. For e.g., if a rich person wants a Ferrari this month, he can and will bid $100K or $200K. He will then pay $100K or $200K as per his bid. The rest of us will bid lower, and if successful, we will pay the lower bidded COE.

 

These rich people who can afford cars at any prices do not make the entire COE quota.

 

The rest will also bid lower when readily available cash in terms of long term car loans are not available.

[Vblaster_w211]

Repeated post

Edited August 14, 2012 by Vblaster_w211

[Timbuktu]

  On 8/14/2012 at 9:05 AM, Vblaster_w211 said:

These rich people who can afford cars at any prices do not make the entire COE quota.

 

The rest will also bid lower when readily available cash in terms of long term car loans are not available.

With 6.5m and even more HNW FTs to come, they will saturate the COE market.

[Vblaster_w211]

By your account, the COE system as is will be even higher. At least the suggested measures will temper and lower it.

[Tjkbeluga]

Just like HDB, it's another battle between those who own it and those who want it.

[Timbuktu]

  On 8/14/2012 at 9:19 AM, Vblaster_w211 said:

By your account, the COE system as is will be even higher. At least the suggested measures will temper and lower it.

Fair enuf ... but the rich and new HNW FTs will take up most of the allowed quota, leaving lesser and lesser spare COEs for the average-Joe SGean to bid, as we reach toward 6.5m.

 

It still won't make car buying any easier, because of the fixed, limited availability and that last layer of COEs left will still go to the highest bidders amongst the average Joes.

[Timbuktu]

Put another way ... if the population is 5m (or thereabouts) now and we eventually reach the targeted 6.5m.

Assume an average FT family is between 2 (no kids) to 5 strong.

And each family wants at least one car.

 

Whether they choose to take MRT to work, or go the rental car route is besides the point. They'd still want a car, and thus a COE.

 

That's another 300,000 to 750,000 in incremental demand for COEs and thus cars!!

 

The anticipated FT influx is no joke, in real terms, if we were to attain our goal of populating SG to 6.5m people.

Edited August 14, 2012 by Timbuktu

[inlinesix]

  On 8/14/2012 at 8:08 AM, RadX said:

ok pls stop creating too many COE threads.......this is getting out of hand.

 

onemore COE thread, i gonna delete straight off

Moderator @ work.

 

I like.

[Gerd]

  On 8/14/2012 at 8:18 AM, Vblaster_w211 said:

The whole idea is to reduce the indebtedness of Singaporeans aspiring to owning a car, NOT to make it less painful.

 

By paying up front cash for COE, pay as you bid system (instead of pay for lowest successful bid system), bid on your own system, and 70% 7 yr max loan on car price ONLY, it will drive down the indebtedness. It will also make sure Singaporeans earn and save enough before buying their cars.

 

Living too much on credit was what brought the US economy down.

 

Having less indebtedness will also mean more assets when we retire eventually. All in line with Singapore's Government thinking.

 

By implementing these measures, the outcome will be:

 

a. Car population is still controlled (by virtue of COE quota system).

b. Lower indebtedness of Singapore car owners and encourages prudence in spending (save first, then buy). Less living on credits and future earning, thereby;

c. Having more set aside for retirement.

 

Only "downside" for Government is lower COE revenue. And that, as we all suspect, is why they fail to adjust the system as suggested. Instead of refuting these changes, they simply say their system is "sound".

 

Sigh...

 

Actually LTA's role is not to care about the level of consumer debt. You want to leverage and buy depreciating item is your problem. How much you want to leverage is also up to you. I see nothing wrong in that. Different people have different views on leverage and the government should not interfere.

 

A person who is dying to own a car but does not mind paying through his nose in interest costs should be allowed to do so. In the end, even if you implement such cash only COE rules, people will still source for their own credit through other avenues (at perhaps higher interest rates) so it won't solve the debt issue.

 

 

 

[RadX]

  On 8/14/2012 at 9:39 AM, Davidtch said:

Moderator @ work.

 

I like.

 

 

wat u think we doing all this while?? Growing daisies ah <_<

 

[laugh]

[Ungtiong]

whats wrong with the current system? if u want a car, you can buy anytime....no need luck, no need ratio, no need to see previous status.....why make is so complicated that a rich man can get a lawyer to still get his car but we are stuck with our luck...

[Elfenstar]

  On 8/14/2012 at 5:18 AM, Jamessoh said:

dear all,

 

was just thinking: since coe is used to control the car population, why can't it be transferrable, since in effect the number of coe remains the same?

 

that could be useful especially when the low coe bought in 2009 can be transferred to a new car now. that would not lead to a change in car number, since when the coe is transferred to the new car, the old car has to be scrapped.

 

any thoughts?

 

Can what. Its transferred to the new owner if you sell your car

[Zyklon]

Such a method will cause a lot more further issues. This transferable coe is chop plus stamp suggested by people who are itching to change car, but no money to change. Therefore I will assume we are talking about bread and butter cars.

 

If say you have a 2009 car and you want to transfer that coe to a new 2012 car today. What happens to the parf of your 2009 car? You sure that 75% of your 20k parf(effectively 15k+body) can cover anything of your new car cost? New car without coe(2.27*20k+profit margin), effectively still must top up 40k to change your 3 year old car. IMHO, not very far off from selling your 2009 registered car and buying a new car today.

 

Actually a lot of people don't understand. If implement cash only for coe, it is only poor peasants like us that will suffer.

 

The rich are not even remotely affected by paying 100k in cash for coe. Truth is, their trade in car value for a 5 year old car+extra downpayment is confirm more than 100k liao. Two main reason why so many are taking extra loan. It is not that they can't afford to pay in cash. Think IRAS and interest rate.

 

 

[Timbuktu]

  On 8/14/2012 at 1:00 PM, Zyklon said:

Actually a lot of people don't understand. If implement cash only for coe, it is only poor peasants like us that will suffer.

Exactly my thoughts!

Even to foot out $30-50K cash for full COE, without it being embedded into the car loan will be a stretch, if not impossible, for many!

Edited August 14, 2012 by Timbuktu

[Nzy]

  On 8/14/2012 at 1:20 PM, Timbuktu said:

Exactly my thoughts!

Even to foot out $30-50K cash for full COE, without it being embedded into the car loan will be a stretch, if not impossible, for many!

 

Isn't this good? Then there will be less people competing to buy cars.

[Moadia]

Aiyo dun think so much..coe system is here to stay..if not how to PAY THEIR Pockets? D system work in a way dat only THEY r right n would not listern to others even its citizens feedback..