Not for love of money, but of Humanity. "Greater is he who works for the good of all, then he who works for the good of himself only" ~ Matthew 25:40: "The King will reply, 'I tell you the truth, whatever you did for one of the least of these brothers of mine, you did for me.'"- (NIV). I live in Singapore where the Emperor must not be disturbed.

Saturday, December 26, 2009

COE prices down across the board in latest bidding exercise

AGAIN has the price large car COE < small car COE price. (picture right, latest COE price (Dec23) Cat B < Cat A COE price)

Govt should set the bottom limit for 'large car COE' to be the price of small car COE. Otherwise the ridiculously 'unegalitarian' outcome of big cars COE being cheap results. This implies that the few elite rich are being 'privileged' because their COEs are now 'discounted'.
Given the current concern about emissions etc, the current status quo possibly making larger cars cheap is unacceptable.

The appropriate adjustment to the system would be for large car COE price to be DEFINED AS: the actual large car minimum successful bid OR small car COE minimum bid, whichever the higher. Left over large car COEs would be carried over to the next bidding round and equally devuded between the small and large car COE quotas. This would keep COE prices more stable in a fair and transparent way and avoid the paradoxical situation of $2 COEs.
Let our elite be true elites, not con salesmen/ elitist tyrants/ lucky draw winners.
COE price history:
COE prices down across the board in latest bidding exercise
By Jeremy Koh, Channel NewsAsia | Posted: 23 December 2009 1906 hrs
COE prices down across the board in latest bidding exercise
SINGAPORE: COE prices have gone down across the board in December's second bidding exercise.
However, industry players said possible cuts in the COE quota next year could cause prices to soar to above S$20,000.
At 5.30pm on a weekday afternoon, the Subaru showroom at Leng Kee Road is relatively quiet.
Apparently, market sentiment has remained weak despite the economic recovery. From the usual 20 or so walk-in customers a day previously, Subaru sees only five to 10 now.
"I think buying interest has been quite weak over the past few weeks due to the Christmas and New Year holidays, and we expect it to continue to weaken till at least mid- or end-January," said Glenn Tan, group chief executive, Motor Image.
The biggest drop in COE prices was for big cars, where the premium fell S$1,114 to S$17,889. The COE for small cars dropped S$352 to S$18,150.
The premium in the open category fell by S$620 to S$17,889. For commercial vehicles, the COE moved down S$389 to S$17,900, while motorcycle COE edged down S$3 to S$851.
But going into 2010, Mr Tan expects the prices to rebound and even reach S$20,000.
"If the government further cuts its COE quota, then we (can) expect COE prices to go a bit higher," he said. This sentiment was shared by industry players.
Arthur Ong, assistant secretary, Singapore Vehicle Traders Association said: "I would expect the COE to rise to around 20 to 25,000 (dollars) - because firstly, the COE quota is reduced, so I expect more people to buy used cars.
"Secondly, the economy is getting better and from our sales record, it shows that used car sales has risen by 30 per cent."
Hence, it may make sense to buy a brand new car sooner, rather than later.
- CNA/sc  :

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