2016 Apr, 2nd COE Bidding Exercise

[EWander]

Just a random thought... If like some forumers suggest that the government allocate separate COE category for cabs/pte-hired cars, wouldn't it come back to square one?

 

Meaning if the overall number of cars on the roads remained status quo without any increase with the introduction of these pte-hired cars, then there won't be much difference for Cat A or B bidders right?

 

Government will just 're-allocate', let's say 500 papers, to another cab category and take away from Cat A and/or B the 500 COE papers. They will not increase the overall quota by 500 just for this reason as they are moving to a car-lite society. It would then create the situation of lesser COE for Cat A/B bidders to 'fight' it out, resulting in not much movement to COE prices in the respective categories, worst case increased COE premiums?

 

I feel there should be another category for pte hired cars with reallocation from cat A and B. However,

the allocation is be just 5% or less of the total number of quota. If they want 1800 cars then they have to bid over 1 to 2 years period to get their fleet instead of distorting market price with 800 to 1000 bid per time.

[Fruit-tart]

just allocate different categories for PRIVATE TAXIS... afterall private taxis are also considere taxis, and they bid for coe for business purposes... should separate from individual consumer bidding of coes!!

 

 

if not, from current min 40-50% downpayment, change to 80%-100% downpayment for cars. either got money then buy, no money dun buy, rather than see ppl tk loans n cant pay up, making huge pile of used cars in those backyards... cars wasted, coes also wasted!! could be better used for people who needs the car, rather than storing it in backyards..

Edited April 25, 2016 by Fruit-tart

[razor54]

Any idea when Taxi is removed from Cat A to other Cat, does the quota from any Cat reduced to support the quota of the Cat which the Taxi move to?

Best way for would-be bidders of personal cars would be that additional papers be injected into the current projected quota set by our government. But by doing so, be ready for more cars on the roads jostling with the cabs/pte-hired cars. Resulting in more traffic and increased ERP charges everywhere.

 

But the question to whether where the quota was taken from or was it added to the current quota, I think only the insiders from the 'Higher Powers' have the formula. What was shared by the 'experts' here were mostly derived from what they read in the papers, forums or from friends and coffeeshop talk. And we know how fast such 'experts' sway in their analysis with the 'noise' from hearsay politics. The dynamics of the ever changing policies are probably not for commoners to understand (or they don't want us to ever understand). A few angry chatters from people unable to secure/afford their COEs in the forums will never get them to change any policies. The COE system as a whole holds too many economic roots to the government's direction. By tweaking the COE system because of some minority making noise from not getting their cars, it might have other repercussions to other industry sectors with much larger scale economic swing (negative).

 

Most of the time, we don't have many alternatives with government decisions, good or otherwise. It's a lifestyle choice when it comes to cars and we just have to bite the bullet in this land if you 'need' to own one. Policy chasing only gets us more resentful. Just look at the housing policies over the years, getting angry also no use... last time flats $100k also complain. Now $500k also LL must buy...

 

That's just life here...at least for this generation.

Edited April 25, 2016 by razor54

[Char]

I feel there should be another category for pte hired cars with reallocation from cat A and B. However,

the allocation is be just 5% or less of the total number of quota. If they want 1800 cars then they have to bid over 1 to 2 years period to get their fleet instead of distorting market price with 800 to 1000 bid per time.

Agreed ! This is to control the number of private hire car on the road like private car as well .

I feel there should be another category for pte hired cars with reallocation from cat A and B. However,

the allocation is be just 5% or less of the total number of quota. If they want 1800 cars then they have to bid over 1 to 2 years period to get their fleet instead of distorting market price with 800 to 1000 bid per time.

Agreed ! This is to control the number of private hire car on the road like private car as well .

just allocate different categories for PRIVATE TAXIS... afterall private taxis are also considere taxis, and they bid for coe for business purposes... should separate from individual consumer bidding of coes!!

 

 

if not, from current min 40-50% downpayment, change to 80%-100% downpayment for cars. either got money then buy, no money dun buy, rather than see ppl tk loans n cant pay up, making huge pile of used cars in those backyards... cars wasted, coes also wasted!! could be better used for people who needs the car, rather than storing it in backyards..

My view better no used car dealer at all , all must be done direct owner to buyer and like property just through agents . So many used car setting down there just wAiting for buyer , really waste of resources .

just allocate different categories for PRIVATE TAXIS... afterall private taxis are also considere taxis, and they bid for coe for business purposes... should separate from individual consumer bidding of coes!!

 

 

if not, from current min 40-50% downpayment, change to 80%-100% downpayment for cars. either got money then buy, no money dun buy, rather than see ppl tk loans n cant pay up, making huge pile of used cars in those backyards... cars wasted, coes also wasted!! could be better used for people who needs the car, rather than storing it in backyards..

My view better no used car dealer at all , all must be done direct owner to buyer and like property just through agents . So many used car setting down there just wAiting for buyer , really waste of resources . Car just like leasehold property only last for 99 VS 10 years . Edited April 25, 2016 by Char

[Fruit-tart]

My view better no used car dealer at all , all must be done direct owner to buyer and like property just through agents . So many used car setting down there just wAiting for buyer , really waste of resources .

 

I agree!! theres so many used cars being parked at the backyards with no buyers.. definitely wasting resources.. even the coe allocated is also wasted.. 

 

people keep buying, taking up loan, then when unable to repay the loans on time, they are being forced to sell off their cars to used car dealers.. making huge backyards of used cars left, HANGING!!!  

 

 

wasting resources. not using resources wisely, or to the full use.

[Axela72]

As long as the car plate# is private car# e.g. SKBxxxxX, isn't how the owner want to use is none of our business? Or because it eat into certain group of entity interest, it become the gov business?

 

Same comment for the 2nd paragraph. 2nd hand car dealer is a job created. In order to satisfy a certain group of entity interest, 2nd hand car dealer has to close shop. There are business around the world that are created from this aspect (middleman, distributor) to earn(made a living) money out from it. Does that mean all of them must be removed? Do you know how many folk will lost their job to fullfill someone interest? 

 

Isnt that selfish act? Kindly correct me if I am wrong. ty

 

 

 

Agreed ! This is to control the number of private hire car on the road like private car as well .
 

My view better no used car dealer at all , all must be done direct owner to buyer and like property just through agents . So many used car setting down there just wAiting for buyer , really waste of resources . Car just like leasehold property only last for 99 VS 10 years .

 

Edited April 25, 2016 by Axela72

[Bismarck]

Agreed ! This is to control the number of private hire car on the road like private car as well .

Agreed ! This is to control the number of private hire car on the road like private car as well .

My view better no used car dealer at all , all must be done direct owner to buyer and like property just through agents . So many used car setting down there just wAiting for buyer , really waste of resources .

My view better no used car dealer at all , all must be done direct owner to buyer and like property just through agents . So many used car setting down there just wAiting for buyer , really waste of resources . Car just like leasehold property only last for 99 VS 10 years .

 

I think that's too extreme. Maybe more like no government pr government's companies involvement in private car business. 

[Berlow]

http://www.straitstimes.com/singapore/cars-for-sharing-raring-to-grow

 

looks like COE not coming down anytime soon after the cars@expo, uber, grab and now the car sharing companies too

[Heman75]

just allocate different categories for PRIVATE TAXIS... afterall private taxis are also considere taxis, and they bid for coe for business purposes... should separate from individual consumer bidding of coes!!

 

 

if not, from current min 40-50% downpayment, change to 80%-100% downpayment for cars. either got money then buy, no money dun buy, rather than see ppl tk loans n cant pay up, making huge pile of used cars in those backyards... cars wasted, coes also wasted!! could be better used for people who needs the car, rather than storing it in backyards..

whether taxi or lorry or individual consumer, all still add up to the number of vehicle on the road. even they have special CAT for the "taxi" it should be also at the expense of CAT A or B quota. else no meaning 

Edited April 25, 2016 by Heman75

[Char]

As long as the car plate# is private car# e.g. SKBxxxxX, isn't how the owner want to use is none of our business? Or because it eat into certain group of entity interest, it become the gov business?

 

Same comment for the 2nd paragraph. 2nd hand car dealer is a job created. In order to satisfy a certain group of entity interest, 2nd hand car dealer has to close shop. There are business around the world that are created from this aspect (middleman, distributor) to earn(made a living) money out from it. Does that mean all of them must be removed? Do you know how many folk will lost their job to fullfill someone interest? 

 

Isnt that selfish act? Kindly correct me if I am wrong. ty

Uniquely Singapore must have unique way . Only Sg got COE in this planet . Car agent also newly job created right ?

How come today newspaper no report on the Expo Car Show ?

Edited April 25, 2016 by Char

[GohLaiChye]

It is so interesting reading this forum, so many different view from so many brother here. The COE price is affected by so many different factors. But it all beam down to one factor, the basic demand and supply. Last year, the AD expert say that we will not see the 40K COE until this year end, but it happen in the beginning of the Year. Now it is slowly moving back to 50K. Will there be another sudden drop, no one dare to say it will not happen, or when, maybe next bidding will happen, haha. So I just pray and believe it will come down, hope it happen sooner than later, haha

[Passion]

I say that the COE need to be regulated.

 

1st take out private hire car from the Cat A and Cat B.

 

Allocate maybe 100 to 150 quota from Cat A and Cat B to this corporate car.

 

Then, apply 40% DP for these car. 

 

Don't say the playing field is not leveled for taxi driver. It is not leveled for private car owner as well. How can individual outbid a corporate with huge financial backing? And how can individual fork out 40% dp of the car when corporate just need to fork out 20%. This is fair playing field? 

 

I think the best way to identify these Uber cars are issue them with special license plate, like instead of SLC1234A, give them a SRC(Singapore Rental Car)1234A. Limit to 9999 car on the road. Let them go and compete among themselves. Now the current system just allow bigger player to manipulate the market.

[Mustank]

See more at: http://business.asiaone.com/news/it-the-right-time-buy-cars#sthash.K1ixm0za.dpuf

 

Is it the right time to buy cars?

 

Saturday, Apr 23, 2016

Foo Jie Ying

The New Paper

The increase in COE supply in the period of May to July was expected to drive premiums southward.

But throw in private-hire companies like Uber and Grab, which are snapping up COEs aggressively to build up their fleets, and the game changes.

That is why all prospective car buyers can talk about now is whether they should wait for COE prices to soften because of the larger COE supply, or buy their cars now before premiums go up due to higher demand from private-hire companies.

UniSIM's Adjunct Associate Professor Park Byung Joon told The New Paper that there is no good or bad time to buy a car because it is hard to predict which way COE prices will go.

"Everyone predicted that the COE premiums will gradually decline because of the number of COEs.

"But these private-hire companies are kind of unexpected," said Prof Park, the former head of UniSIM's urban transport management programme.

The Land Transport Authority announced last week that car COEs would increase by 14 per cent to 8,384 a month during the May to July period.

Whether the premiums go up or down will depend on how aggressively private-hire companies bid for the COEs, said UniSIM's senior lecturer Dr Walter Theseira.

In the most recent bidding exercise, Uber reportedly secured 14 per cent of the total COE bids across the three categories, which helped drive COE prices up by up to 5.5 per cent.

In the previous bidding cycle, Uber-owned Lion City Rental submitted more than 800 bids, which accounted for 11 per cent of the total bids made for car COEs.

That is why Singapore Vehicle Traders Association's first vice-president Raymond Tang believes COE prices will remain firm or go up.

The economy could also drive more people to work as an Uber or a Grab driver, which will in turn contribute to the rising demand from private-hire companies, Mr Tang said.

And it is not just the private-hire companies.

In the past few years, car rental and leasing companies have been doing quite well.

"When they have customers wanting to lease or rent new cars from them, they also join in the bidding," Mr Tang said.

 

 

DON'T WAIT

 

(that's right! mai tu liao!!!    ) 

"If you need a car and your financial status allows it, you should not wait. You won't be able to predict what is going up or coming down when it comes to COEs."

Still, there are other factors that may exert downward pressure on COE prices.

While Dr Theseira said that COE demand could increase, the economics lecturer suspects that aggregate demand for cars could eventually fall.

"Demand could fall because some consumers who might normally buy a car could find that all their private transport needs are met by Uber or Grab and taxis," he said.

"Overall, I suspect that aggregate demand for cars will eventually fall because of the ease of taking private transport.

"Why buy the car when you can effectively rent the service only when you need it?"

Even if the premiums do drop, Prof Park said it will be unrealistic to expect a substantial drop.

"My advice: Don't panic buy, but don't panic delay," he said.

"If you plan to buy a car, just go ahead and don't delay your purchase, hoping that something will happen to the COEs."

Dr Theseira said: "Timing a car purchase is just like timing the stock market. It is hard to do and generally doesn't work."

He suggested buying a used car rather than a new one, because a substantial part of the cost is the depreciation that is incurred from buying a new ride.

[email protected]

 

Edited April 25, 2016 by Mustank

[KoreanLover]

Agreed ! This is to control the number of private hire car on the road like private car as well .

Agreed ! This is to control the number of private hire car on the road like private car as well .

My view better no used car dealer at all , all must be done direct owner to buyer and like property just through agents . So many used car setting down there just wAiting for buyer , really waste of resources .

My view better no used car dealer at all , all must be done direct owner to buyer and like property just through agents . So many used car setting down there just wAiting for buyer , really waste of resources . Car just like leasehold property only last for 99 VS 10 years .

 

Boils down to simple supply and demand issue. If there are no demand, there won't be so much 2nd car dealers in the market.

 

Everyone wants to sell higher and buy lower but how to achieve that efficiently?

 

Not all sellers can afford the time to entertain potential buyers for round and round of test drive without closing the deal.

[Forte3737]

Got so cheap meh? 100k+ car with 10 yrs at 400+ per mth? I also wanna buy

Some people maths no good lar...

[Axela72]

Isn't what you have quoted has already been happened since day 1 before Uber join the game? How can individual out bid against AD in coe bidding systems etc.

 

So does that meant gov has to further dissect and allocate a portion for AD vs individual bid too?

 

 

 

I say that the COE need to be regulated.

 

1st take out private hire car from the Cat A and Cat B.

 

Allocate maybe 100 to 150 quota from Cat A and Cat B to this corporate car.

 

Then, apply 40% DP for these car. 

 

Don't say the playing field is not leveled for taxi driver. It is not leveled for private car owner as well. How can individual outbid a corporate with huge financial backing? And how can individual fork out 40% dp of the car when corporate just need to fork out 20%. This is fair playing field? 

 

I think the best way to identify these Uber cars are issue them with special license plate, like instead of SLC1234A, give them a SRC(Singapore Rental Car)1234A. Limit to 9999 car on the road. Let them go and compete among themselves. Now the current system just allow bigger player to manipulate the market.

 

Edited April 25, 2016 by Axela72

[Forte3737]

Isn't what you have quoted has already been happened since day 1 before Uber join the game? How can individual out bid against AD in coe bidding systems etc.

 

So does that meant gov has to further dissect and allocate a portion for AD vs individual bid too?

At the moment. I the mcf transport minister, will let market forces decide. You people stay tune.

[BenTong]

Boils down to simple supply and demand issue. If there are no demand, there won't be so much 2nd car dealers in the market.

 

Everyone wants to sell higher and buy lower but how to achieve that efficiently?

 

Not all sellers can afford the time to entertain potential buyers for round and round of test drive without closing the deal.

I gave up on him dy..