Oil prices plunging again and this means the price of petrol will also plunge. This makes owning and running a car much, much cheaper. Since taxi fare rates did not fall, it is now better to own and drive your own brand new car than to give away your hard earned money to taxi uncles. Also you don't have to worry about not getting a taxi when it rains or during peak hours.

COE prices will conitinue to rise further as more people are buying new cars.

Supply for COE for 2015 is 100,000. But demand is more than 100,000, maybe 200,000 or even 300,000. The rise is demand for car is due to these factors:

1. Families are getting richer as income has shot up over the past 10 years. Many families own more than one car. Some even 3 or 4 cars as more members are now working in the family.

2. Oil prices now very cheap.

3. Population growth which means higher demand for cars.

4. Young graduates earning a lot more. The good ones can even start earning $10k pm.

5. Families made lots of profits flipping their BTO flat. For example they bought their BTO flat 5 years ago at $200k. Today they sell at $500k and then buy a 2nd BTO at $300k. So they first made profit of $300k and for for their 2nd BTO, they only need to pay 20% downpayment, some more can pay some using CPF. So, they have lots of cash in hand. So many of them use their surplus cash to buy brand new cars. Very cheap only $100k - $200k and they can take 50% loan. So need only cash of $50k - $60k. So easy since they have cash from flipping their BTO flat. So cheap BTO flats will drive demand up and up!

6. Many people desire to buy new cars to show off as a symbol of their success.