Many households who bought cars in 2005-2006 when
COE was only 10k are not going to buy a new car when their COEs expired. Their household income remains less than 120k per annum (diploma level dual income family working at technican/clerks level), their kids have grown up and now independently taking buses/
MRT to schools. They dont have much cash to pay 50% downpayment for a car, and need to save for retirement and kids university education.
If they join in the property rush to upgrade to EC in past 2 years, they face higher mortgage payment soon.
They also face retrenchment threats in the 40s.
Too many financial constraints for a middle-class family to think about buying a car at 100k a piece.
When
COE car prices drop to 30k, then maybe can consider. If not, just wait and see. Anyway 200,000 COEs will be issued in next 2 years. Just relax and watch those gan cheong spiders buy at ridiculous 70k
COE prices
Quote:
Originally Posted by Unregistered
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. |