COE Bidding - 1st Round of September 2016

[Rachdanom]

  On 9/7/2016 at 9:25 AM, Akula said:

Feels like a general sense of weakness in the buying sentiment. After 3 weeks still dropped nearly $2k for Cat A and slight increase for Cat B. Hopefully it is a start of a general downward trend to saner COE prices.....

I think there is now a big chunk of the rich that are unfazed by the so-called worsening economy. I dont think COE prices will drop like it did 10 years ago. 30k to 40k is the new minimum.

[Bieffe]

  On 9/7/2016 at 3:03 PM, Rachdanom said:

I think there is now a big chunk of the rich that are unfazed by the so-called worsening economy. I dont think COE prices will drop like it did 10 years ago. 30k to 40k is the new minimum.

I totally agree that the COE will be maintained at this amount there abts. Measures will ensure this value is maintained....this is to ensure stable income for ah kong....and GDP report card.

[Victor68]

My view is, if you have to choose between the Cs, car is one of the lower priority. With our current economy,heading south is normal.

 

There are a still some GCOE to clear with 6 bids. Those working in iron rice bowl organazations and got $ all will take this opportunity. Of course if it continue to drop like the share market. Where are the buyers?

 

Car is of course quite different with shares. Limited supply, so will have buyers. Just how Low. Good luck to those waiting to buy.

[Kar_lover]

  On 9/7/2016 at 2:34 PM, monsieurlee said:

Skool holiday Lor. All gone away. No hoot Coe no hoot car haha

 

 

School holiday only started this week. You think yesterday's COE depend on buyers who buy car this week?

Edited September 8, 2016 by Kar_lover

[Axela72]

  On 9/7/2016 at 10:04 PM, Victor68 said:

My view is, if you have to choose between the Cs, car is one of the lower priority. With our current economy,heading south is normal.

 

There are a still some GCOE to clear with 6 bids. Those working in iron rice bowl organazations and got $ all will take this opportunity. Of course if it continue to drop like the share market. Where are the buyers?

 

Car is of course quite different with shares. Limited supply, so will have buyers. Just how Low. Good luck to those waiting to buy.

Btw, in history, is there ever less bidding than quota?

[Yeshe]

  On 9/8/2016 at 12:29 AM, Axela72 said:

Btw, in history, is there ever less bidding than quota?

That was when coe was $1

[Axela72]

  On 9/8/2016 at 12:32 AM, Yeshe said:

That was when coe was $1

Thought $1 can only happen when due to glitch?

 

My intend is to check whether is there ever demand less than supply

Edited September 8, 2016 by Axela72

[Brianlee]

in the market have many 10years loan package, what do you think the possibility of garmen change the rule to 10years loan in future...

[Yeshe]

  On 9/8/2016 at 12:34 AM, Axela72 said:

Thought $1 can only happen when due to glitch?

 

My intend is to check whether is there ever demand less than supply

Got lah, there was a period of time the coe for commercial vehicle was $1 for couple of mths

[L23]

  On 9/8/2016 at 1:26 AM, Yeshe said:

Got lah, there was a period of time the coe for commercial vehicle was $1 for couple of mths

That is when there is 2m living human on our tiny island..

Now is 5.5m , you think this will happen?

 

6.9m is coming sooner than you realise wor..

I just like the number 69 

[Axela72]

  On 9/8/2016 at 1:26 AM, Yeshe said:

Got lah, there was a period of time the coe for commercial vehicle was $1 for couple of mths

So that is only applied to commerical vehicle then. Ty

[Sweeney]

Demand from individuals was slowing at start of this year when people were waiting with saliva dripping for softening COE prices. 

 

But then Ah Gong lett in uber/ grab and allowed for leasing. The timely appearance of ride-sharing platforms was a stroke of effing luck for Ah Gong. Uber/ Grab first appeared when COEs was still high and they bought 8-9 year old cars at the beginning. Then when the COE market appeared to be heading for a bear state, they switched to buying new cars, propping up the market at a time when people were all holding back, waiting for COE to drop, as evidenced by the Feb $38k Cat B. 

 

Soon after in 1Q this year, scholars soon loosened the loan restrictions further which allowed in potential owners who were previously shut out by the more restrictive loan term. Their ostensible reason was that the previous policy had already achieved it original intention and thus was no longer needed. Yeah, right. 

 

The combination of these 2 forces propped up the sliding of COE prices as it opened the door for those who could not otherwise afford the 30% upfront to continue to stay in the market for cars. Leasing companies are also now jumping into this market to compete alongside uber/grab for COEs that enables the same marginal group of owners to carry on driving, while earning some income to offset the high costs of car ownership. 

 

Otherwise, market could have dropped out from Feb and the downward spiraling COE income would have played havoc with MOF's projection of COE revenue. After all, your car taxes contributes nicely to the (among others) the $1b BSEP and dunno-how-many-billions MRT construction. There's no free lunch. 

 

Thank you for your contribution to nation-building. 

Edited September 8, 2016 by Sweeney

[Pocy]

  On 9/8/2016 at 12:34 AM, Brianlee said:

in the market have many 10years loan package, what do you think the possibility of garmen change the rule to 10years loan in future...

If COE prices slide, why not.

[Brianlee]

  On 9/8/2016 at 2:31 AM, Pocy said:

If COE prices slide, why not.

yes, agreed. garmen also need to make money. there are posibilities to change to 10years loan.

[Ahbengdriver]

Something needs to fund those disgustingly high salaries.  Money doesn't drop from the sky.  Along comes the COE.

Edited September 8, 2016 by Ahbengdriver

[clasher]

  On 9/7/2016 at 10:04 AM, Axela72 said:

didnt know that ppls just only realise how weak is the market until this bid. Market has already start weakening since the drop of 8k coe period. It is all the intervention that help to push up the demand.

 

As for the intervention, none of us here can forecast what will happen next. Don't worry, if there is a few drops in coe bidding, some intervention will phase in like before.

Market is bad, next year will be just as bad. But there are still a lot of people waiting to buy cars. Heck, even the admin in my company is also waiting to buy a car. It is hard to imagine car coe of below 40k with the pent up demand.

[Nikeair]

As I had mentioned in my previous post, I do not know how to "time" the market so I just went for the G-COE package and bought one within my budget (actually cheapest model) from the AD.

"Paying money" to save time and for convenience and to contribute to "Nation Building" as someone had mentioned.

 

I'm definitely going to use it till its COE expires like what I did with my other rides.

Besides, it could potentially be my last ride (hopefully second last) before the next one becomes a paper model. :)

 

[Arch1984]

Yeah need to buy and can afford just buy and enjoy. COE probably wont change much in the near future.