New COE quota

[rendino]

Hi all,

I read with interest on the new quota set for the 2nd half of the year. Will more COE for Cat A mean cheaper price for Cat A cars in future?

Can I get back the current high COE if I sell at the end of 10 years loan? :confused:

Thanks.

[timmz]

Your Question:
Can I get back the current high COE if I sell at the end of 10 years loan?

At the end of the 10 years, your COE expires- which means u need to get another COE at the prevailing rate.
If you sell before 10 years, COE depriciates linearly , eg 10% per year of ownership as your 'paper value/ scrap value' of the car price.

[rendino]

Hi timmz,

thank u for the response. so is it rite to say that a high coe will ensure a minimum high selling price (coe + omv) if i sell at the 3rd year(example) regardless of current market price?

Im just thinking whtr I will benefit from the high coe now if I have to sell the car when the coe drops. with the increased cat A quota, pple say in future cat A coe will fall.

[timmz]

Hehehe, I don't think 'benifit' is the right word to use.

Buy High , Sell High is the norm. Buy low sell high is where you benifit :)

The problem is that when COE is lower, people will tend towards a new car with new COE.
Would you rather buy a brand new car for $100K when the 1 year car with $30K higher COE is selling $95K?

Of coz if $$ is not an issue, follow your heart.

[auto_emocion]

Hi timmz,

thank u for the response. so is it rite to say that a high coe will ensure a minimum high selling price (coe + omv) if i sell at the 3rd year(example) regardless of current market price?

Im just thinking whtr I will benefit from the high coe now if I have to sell the car when the coe drops. with the increased cat A quota, pple say in future cat A coe will fall.



There is nothing to benefit out of a COE besides able to get your car register on the road.

High COE meaning higher residue value before the car goes PARF at the 10th year.

When the time comes & COE lowers itself to $35k, it matches a 3 yr old used car registered with today's COE. A buyer will surely turn to new car market, and those used cars with $50k COE will head to scrapyard.

[markfer1]

There is nothing to benefit out of a COE besides able to get your car register on the road.

High COE meaning higher residue value before the car goes PARF at the 10th year.

When the time comes & COE lowers itself to $35k, it matches a 3 yr old used car registered with today's COE. A buyer will surely turn to new car market, and those used cars with $50k COE will head to scrapyard.

Hi bro,

Agree totally. If you dun mind, i would like to add a little.

Higher COE will also means higher depreciation per year. E.g. if bought a car with a COE worth $10K, then the COE will deprciate $1K per year, however if COE worth $50K, then the COE will depreciate $5K per year.


& also more interest charges (assume car loan is bigger due to higher car price cause by higher COE price)

[auto_emocion]

To make things worse, all Conti cars that enter SG from 2010 have a declining OMV.

[rendino]

Thanks guys for all e responses! This has surely straighten my thoughts.

Sent from my GT-P1000 using Tapatalk

[oliverlay]

To make things worse, all Conti cars that enter SG from 2010 have a declining OMV.

Hi auto, wat do u mean by declining omv?

[auto_emocion]

Hi auto, wat do u mean by declining omv?

Bro, Euro drop and weak, so OMV declining... LOL..

[markfer1]

Bro, Euro drop and weak, so OMV declining... LOL..

Hi bro,

If i may add a bit to this OMV thingys.

Open market value (OMV) is a pretty grey thingy in Singapore. The same model car that is brought in by the authorised dealer and parallel importer can have difference in OMV. The difference can be as large as 4 digit.

This is something Govt is currently looking into.