For those of you who are thinking of changing to a new car or buying your first new car, now is a good time as prices are now affordable. Salaries have increased over the past 10 years.

A couple in their mid 30s would easily have a combined income of $150k pa. If they buy a $100k new car (ie cost them $10k per year since the COE is valid for 10 years), then they should have no problem paying for the car. Just buy a simple lower cc car which doesn't consume much petrol.

Don't be stupid to buy cars costing $120k and more, and consume lots of petrol. For a couple with $150k pa income, $10k pa is only 6.67% of their annual income.

COE prices will continue to rise as we have more affluent population and limited supply of cars on the road. Demand is higher than supply, so price will rise.