Quote:
Originally Posted by Unregistered
The reason why COE price will be at current levels or higher is because it is lucrative to set up your own private hire car business.
If you buy a new car now at $90k, your depreciation per day is only $25. Your daily earnings can be a lot more than this. After taking away depreciation, road tax, insurance, fuel cost, etc, you can still make money if you drive long enough.
So that is why demand for new cars now is very high. With just a capital of $90k to buy the new car and some working capital, you can start doing your transport business. This is safer than opening up some shops which you can't guarantee will make money.
So, if you have $90k, you can set up your own private hire car business and makes lots of money. Not surprising why demand for new cars and COE is very high. COE price will surely go higher as demand is greater than supply. |
One more important point is that the
COE quota is going to shrink drastically from Y2020 onwards. Everyone who has eyes can see it coming. The
COE premium will shoot over $150,000 by that time. So, if Uber starts accumulating its car at today's low
COE, and then sell at Y2020 & beyond, they might even own the car for free! No wonder everyone is rushing in now to bid
COE, and avoid being caught in the
COE drought period from Y2020.