TKL: Car Dealers Speculating in COEs!

[makapaaa]

Apr 5, 2010

Tweak COE bidding system to curb speculation

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THE current system of bidding for certificates of entitlement (COEs) has been used for more than 20 years. When it was first introduced, it was envisaged that end buyers would bid for the COEs.
Over the years, however, the bidding appears to be dominated by motor dealers who make a large profit on trading
COEs, adding to the total cost of vehicle ownership. The bidding system also encourages speculation and price volatility due to greed and fear.
One obstacle preventing the end buyer from bidding directly is the high price of COEs and the lack of financing.
The following tweaks to the system may reduce speculative activity:

Allow the successful bidder up to six months to find a suitable vehicle;

Require the successful bidder to pay only 10 per cent at the time of bidding, and the remaining 90 per cent on purchase of the vehicle; and

Change the bidding cycle to three months instead of the current one month.
These changes will create a fairer and more transparent market for COEs and remove the unhealthy speculation.
Tan Kin Lian

 

[makapaaa]

Which $$$million Minitoot is being caught offguard this time?

 

[makapaaa]

<TABLE border=0 cellSpacing=0 width="100%"><TBODY><TR><TD class=heading>Latest comments</TD></TR><TR><TD id=messageDisplayRegion width="100%"><TABLE style="WIDTH: 100%" cellSpacing=2 cellPadding=0><TBODY><TR><TD style="VERTICAL-ALIGN: top" align=left><TABLE style="WIDTH: 100%" cellSpacing=2 cellPadding=0><TBODY><TR><TD style="VERTICAL-ALIGN: top" align=left><TABLE style="WIDTH: 100%" class=Post cellSpacing=0 cellPadding=0><TBODY><TR><TD style="VERTICAL-ALIGN: top" align=left>I heard from the propaganda arm (media) that second hand car market is revived overnight.

After the COE drop to $2, Car was cheap for 1 whole year. COE was cheap for 1 whole. Same forum here, I encourage ppl - it WAS time to buy car - change car. But few ppl do it, we just have to accept it that Singaporean likes to buy the same thing expensively. Maybe, the owner has more face when he tell ppl, my Altis is $89k instead of $52k.

So now, ppl buy second hand car, media even report owner change existing car to second hand car. They call it upgrade in terms of cc !

It is a good trend you know! Becos fools buy second hand car. The outcome of the story is the same - car gives problems and problems.... In the end the outgoing old car gets scrape, the incoming second hand car gives problem and eventually get scrape too. More COE are release back to the pool, more money are lost by car owners.

So the smart ppl are those that holds back changing car or buying car now. Wait until this batch of second hand car owner scrape their car, the COE count will be increase again.

All in all, it is gov policy cause a COE problem. Now they are patching the problem at the ppl expense.:
1 At 1 time, LHL says wanna increase car ownership, his ministry pumps in more COEs, allow 10 yr loan etc....
More ppl owned car -
2. Becos COE system got this "recycle problem" that has not being address since day 1 (it is a flaw that makes tonnes of money ), the virtual supply of COE results in price becomes unpredictable.
3. More at that time scrape car and change resulting in more parameters to handle.

So now, they are patching the problem. Lets hope the current 'change to second hand car' trends results in existing car being scraped, 'new' second hand car also dun last long and get scrape too(owner loss 2 times). More COE are release back allowing future COE bid to continuing fetch money. With this, we are playing with constant COE pool in the eco, - no consideration yet for % growth in car numbers.
</TD></TR><TR><TD style="VERTICAL-ALIGN: top" align=left>Posted by: GamblingDenSupporter at Mon Apr 05 09:27:22 SGT 2010
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