Demand for new cars are strong due to these factors:

1. Incomes are rising in general. Many families are dual income, so if husband and wife each earn $5k pm, their combined income will be $10k pm. So no problem buying a new car.

2. Fresh grads are earning higher starting salaries. So new demand from the younger crowd.

3. BTO flats are sold too cheaply, which means mortgage can be financed by CPF and no need to come out with cash. So many people have a lot of excess cash to buy new cars.

4. Many cars going to be scrapped so current car owners need to replace with brand new cars.

5. Property market has been good over the past few years. Many people make money after selling their HDB flat, they have lots of cash to buy new cars.