Wednesday, March 24, 2010

COE prices surged!

UPDATE: One commenter correctly pointed out that the COE quotas have not be reduced yet. The surge is due to anticipation that number of COEs will be cut next month. Wonder how much more it will surge when the cuts actually take place...

LTA will reduce the number of COEs by roughly 30% [Link] for next month. Don't worry, our govt is not going to collect less money because they cut the supply of COE because the price of each COE has gone up by more than 30% for all categories:

A. CAR (1600CC & BELOW) & TAXI $28,389 from $21,421 (+32%)
B. CAR (ABOVE 1600CC) $36,089 from $25,190 (+43%)
C. GOODS VEHICLE & BUS $32,890 $23,979 (+37%)
E. OPEN $42,001 from $27,001 (+55%)

Quite amazing really!
COE prices skyrocket
Home > Breaking News > Singapore > Story Mar 24, 2010

CERTIFICATE of entitlement (COE) premiums in the latest tender on Wednesday spiralled northwards by more than $10,000 - a quantum leap unheard of since the 1990s. Following news that supply will shrink drastically, bidders sent COEs to new highs. Premium for cars up to 1,600cc climbed by about $7,500 to $28,389. The rate for cars above 1,600cc was up by nearly $10,000 to $36,089. Open COE, which can be used for any vehicle type but ends up usually for cars, skyrocketted to $42,001 - more than $14,000 above its previous level two weeks ago. Even the commercial vehicle COE ended dramatically higher. It closed at $32,890, nearly $6,000 more than before. Motorcycle COE was the only one that chalked a modest increase - of about $40 to close at $1,200. Observers said the supply shrinkage starting from next month spooked motor traders, sparking the rush for COEs. They also noted that speculators are back in force, driving premiums up further. Vincent Ng, product manager of Honda agent Kah Motor, said the sharp increases were 'definitely because of dealers of luxury cars', who have fatter margins than others. 'They have to have COEs in hand to sell cars,' he said. 'And speculators are also back.'


Anonymous said...

Actually, the reduction will only take effect in April. But this surge happened because all car dealers are trying to secure as many as possible to fill their existing orders before April.

Notice how much more the Open cat is. This is normally a proxy for the big car cat (Cat B) that is transferable and valid for 3 months. So I expect the COE for Cat B next month will exceed $40K.

In fact, if COEs prices continue to rise, the govt coffers will be filled far more than before the adjustments.

Anonymous said...

this govt that believes in everything market forces is totally useless and hopeless.

Anonymous said...

Anonymous said...

That's why the gahmen so powerful. Can control COE, COV, GLC, TLC, NTUC, HDB, CPF, ERP, Univ fees, almost everything lah.

Even can make opposition give 50% walkover to them every election and so half of you all can't even vote!

You say powerful or not?

Anonymous said...

Anonymous said...

Anonymous said... said...

Its really expensive these days to own a car!

Singapore Short Stories said...

Oops sorry, for typing in the wrong field...(email as name)...

Anonymous said...

Singaporeans love cars. Even really expensive die die must have. If not how can COE prices surged, right or not?

Good lah for the gahmen.

Anonymous said...

With so much free $$$$$ rolling into their coffers, the papist leegime are smiling all the way to the bank.
The COE is nothing but a killer indirect tax. In the 90's it hit $100,000. It is a way to differentiate the rich from the poor. The papists are telling Singaporeans, if u don't have $$$$ u r nothing.

Anonymous said...

At $40K, the depreciation on COE alone is about $5K per year including interest. If one is willing to spend that kind of money for a piece of paper, I guess that's one's choice.

Anonymous said...

[]Anon 23:56 - Singaporeans love cars. Even really expensive die die must have. If not how can COE prices surged, right or not?[/]

This is the kind of statement made without thinking. Who does not like to have a car? Who does not love convenience? You mean only Singaporeans are car lovers in this world?

Statement like yours is akin to putting the blame on Singaporeans. Very insidious and shifts the spotlight from the transport ministry and PAP's policy failures..

Anonymous said...

Did you know that Lee Hsien Loong was an ex-SAF scholar? His father is paid millions and yet too poor to pay for his son's tuition fees, he had to use our income tax to pay for his son to study mathematics in England.

Can someone explain to me again, what is meritocracy?

Anonymous said...

LKY believes in meritocracy, okay?

If you say his son LHL got his position as PM because of nepotism, he will sue.

If you say HC got her position as head of Temasek because of nepotism, he will sue.

If you say L&L lawfirm got their lucrative HDB legal deals due to connections to LKY, he will sue.

If you say his various relatives got their big positions in stat boards and GLCs because of family connections, he will sue.

Don't play play, okay?

Anonymous said...

The running dogs know their leegime ending soon. Cashing in as much as possible first. They are hoping COE will reach $200,000 soon. Overseas properties, trust funds and tax havens all setup long time ago already. Every year they all buy open 1-way ticket out of S'pore. Any time just up & go. Don't need to pack luggage. Overseas luxury condos, bungalows, billion dollar bank accounts, private jets and limousines all waiting to serve. Leave behind their CPF account, POSB savings account and properties never mind -- only at most 5% of their net worth.

And to that anon poster: Now then you know LHL is SAF scholar ah?!? ALL 3 of LKY's kids all govt scholars. Their first-class education, accommodation and living allowances all courtesy of taxes paid by you, your father & your mother.

Many of the mini-star's children are also govt scholars. More than 60% of people awarded govt scholarship (equivalent to PSC Scholarship & above) come from upper-middle-class or wealthy families. They actually don't need scholarships for university.
Another 20% are from middle-class families. Not more than 20% who get govt scholarships come from lower-income families.

In the leegime, rich get richer faster, while poor get poorer faster. Cheaper, better, faster!


Anonymous said...

The cost of living has gone up so high that it's no wonder we're seeing more suicides on MRT tracks and HDB flats because of financial difficulties.

If prices keep on rising unjustifiably, we may need to "send in the army" on the government.

Conscious said...

The most feared man in Singapore is not LKY. It's clearly SDP's Dr Chee Soon Juan. LKY is most afraid of this man as this guy dares to do what he believes is right and that frightens LKY and LHL.

As usual, Lucky is yet another bo lam pa Singaporean. You need to move from writing to action. There's a gap in your thoughts. Stop hiding behind the net and shoot empty bullets. Yet at the same, working hard to stuff your hedonistic lifestyles.

You want to add value to your words, here's a tip: join a fucking party or set up one. Your non-vote for the government is not enough. Neither are your utter lack of translating your words into action.

Anonymous said...

To anon 14:33, we all have our strengths and weaknesses. If your strength is politics, by all means join politics. Not everyone is made out to be politicians, so you cannot expect all who are unhappy with the PAP regime to join politics. Take a look at the PAP and you see what I mean. They have the most ridiculous and inept people who are clearly unfit to be in politics.

Anonymous said...

Lucky is not a hero to me, an ardent reader of his blog.


he has my greatest respect for saying the true facts about livings, especially in this SINful Dot control by some shenanigans and charlatans.

He has the bravery and chivalry.