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Many causes of COE spikes

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  • P-K4's Avatar
    7 posts since Nov '06
    • in such cases its really LTA fault.  There's really no need to cut coe supply immediately. It could have been lowered in steps to cushion the rise. No brainers.. in the end the market get a knee jerking respond..

      So much for first class civil service..

       

       

  • lianamaster's Avatar
    16,075 posts since Sep '08
    • I feel COE prices might go down in a few years time when more current owners deregister their cars at the end of the 7 to 10 year lifespan.

      The car booming population mainly occured in year 2007 to 2009. Hence, between 2014 to 2018 might be a good time that more new COEs are being issued.

      It's a vicious cycle and we might see another wave of "down-to-earth" prices again, probably not to the level of $1, but at least not until the level we see these days.

      That's just my prediction. Might be wrong. icon_mrgreen.gif

  • ~PEPPER~'s Avatar
    1,680 posts since Apr '10
  • T.Ryousuke's Avatar
    2,131 posts since Aug '05
    • Supplier and demand?

       

      Firstly, the cash for bid of COE comes from the AD upfront, b4 they hand the car and collected their $$ from the Bank.

       

      If LTA put up 2500 pieces of COE up for graps,

      then AD need 16k x2500= 40mil to bid for COE.

       

      Then, if only 1000 COE, then 40k x 1000=40mil

       

      All this is about cash flow within AD/PI and not the customer directly. But then ofcourse it's the customer $$.

      Rmb all this $$ do not come immediate to the AD hand.

       

      Another point is which AD/PI have the most cash in-hand will be in advantage. But once $$ runs out next AD will over take.

       

      Best sale do not means most profit, nowadays with the breakdown cost from LTA site, most ppl will go for best value for $$.

       

       

       

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