Quote:
Originally Posted by Unregistered
Next week COE bidding will be exciting as prices will shoot up due to the high pent up demand by many people. The demand for COE and new cars will come from:
1. Current drivers who are scrapping their cars. Every year in 2015 & 2016, there will be 100,000 drivers scrapping their cars so this means every year in 2015 & 2016, there will be demand for 100,000 COEs each year!
2. Those who can't afford 10 years ago but now can afford. For instance, 10 years ago, a family has annual income of $80k pa and they can't afford to buy a car. Now this family as an annual income of $200k pa. This family can easily afford a Cat A car.
3. Young graduates who earn big bucks. They want to buy a car to show off to their friends and colleagues to show that they are successful. This is also a big group as every year, there are thousands of young graduates.
4. BTO flat flippers. This group bought their HDB BTO flat for less than $200k ten years ago. Today, they can sell their flat and make profits of $300k - $400k. They can use $100k to buy a brand new Cat A car easily. No problem.
5. Property investors. This group has made tons of money over the last ten years. The good ones can make $1m in profits over the last ten years. They can easily buy a Cat A car costing $100k plus, not nay for themselves but one for the wife, one for the son and one for the daughter. So, there will be 4 cars in their household. This family typically stays in a big bungalow that can accommodate 4 cars or stay in a condo with many empty car lots.
So, expect Cat A COE to hit $68k next week. Cat B COE will hit $75k. They will continue to go higher in Dec and Jan 2015. By Jan 2015, Cat A will hit $75k while Cat B will hit $90k. |
Let me refute points 2.3.4 &5
Point 2 - 10 years ago earning 80k pa, now 200k pa. 10 years ago, newly married, no burden. Now got 2 children plus parents no longer work and maybe diagnosed with some illness. So how would you use your income?
Point 3 - how big is your "big bucks"???
Sure, we will have those
SMU summa cum laude law trade getting 5k for starting pay BUT are there THOUSANDS of fresh grads with starting pay of 5K?
Point 4 - BTO flat flippers. If you are BTO flat owners, 5 years ago, your family earned NO more than 8k (income ceiling was revised 3/4 years ago nia). After pocketing a profit of 200k, the sellers will buy a car and sleep in it and along the way have 2 kids and can use the boot and bonnet as baby cribs?
Point 5 - you said the good ones make 1 million in the last 10 years. And a savvy investor will forgo 40% of his gains to get 4 cars?? And they are staying in bungalows big enuf for 4 cars??
For your info. Bungalows cost at least 10 million and above. If a person is rich enough to stay in a bungalow, he would not have to rely on flipping to make a fortune. Really rich folks make their money when a) their companies ipo b) through business and franchises c) through the stock market ...
After the property agent(s) stop their "you have made it, top 15%" posting, the car dealers are here LOL