You forgot these other contributing factors:
1. People are going to retire later (beyond 62), so they will continue to buy new cars even they reached 55.
2. People who previously did not own cars will do so when they withdraw their
CPF at 55 because they will continue to work for another 10 years.
3. Previously I was thinking of giving up my car to my son when he starts work, but now I tell him to buy his own because I will still be working and need my car. By the way, my wife has her own car because she said she also needs one for her work.
And now that the gahmen said they will cut the car population growth to 0.25%, I don't think the
COE price is ever going back to $20k.
Quote:
Originally Posted by Unregistered
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. |