Saturday, 20 November 2010

Equilibrium????

Although car prices are back to levels never seen before in 10 years it may not be a bad thing after all....

It used to be a case where the more affluent people in Singapore owned cars. The then sky-high ARF, loan and downpayment restrictions and conservative growth rate for vehicles all combined to make cars out of reach for the more common folks.....

E.g. Without 30% downpayment in cash, one could forget about getting a loan and there was no such thing as a 10-year 100% loan....

By cutting the supply of COE, the only way for prices to go is up..... And current owners have less reasons to deregister their cars and that will lead to a small pool of COE for the next 6 months....

Looks like we all fug for the next few years.....

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