COE is a very important part of people's spendings. Looking at the earnings of most people in this forum (most has a HH income of more than $100k pa), it is not surprising that most people can afford a new car. The annual COE cost is now only $5700 ($57,000 / 10) which is only 5.7% of the income of a HH with $100k pa. If the HH's income is $200k pa, then no problem at all buying a new car.