Saturday, April 12, 2008

Avoid buying a private car

Dear Mr. Tan,
May I ask you whether it is a good time to buy a car now? As I had just came back from overseas lately. I found out that the COE had increased a lot. For the category below 1600cc, the COE price is $16930. Some people say it may hit $20000 for COE.

Do you think will the COE come down $12000 to $14000 in few months times As every things is increasing who will want to buy the car if COE keep increase. Please help me to answer my query.

REPLY
In my personal view, it is a bad time to buy a car any time. Although I I have a car, I prefer to keep it at home, and travel by MRT and bus.. Sometimes I take the taxi.

If you have to buy a car, you better get someone else to advise you on timing. I am not familiar with this matter.

4 comments:

Anonymous said...

It's good to have car in Singapore. But, if you don't have one, you don't really lose much. Our transport system is reasonably ok. Not perfect, but, it is improving. Car is a liability. Investment yields from car park lots is much lesser than commercial spaces. So, you can expect lesser number of car park lots to make way for that extra space for commercial usage. Parking will be getting more and more challenging. And for sure that there will be more ERPs awaiting motorists. Few months ago, I think LTA was reportedly exploring a virtue ERP gantries using GPS.
Be prepared to pay more...

jeff said...

In my opinion, tt is unlikely that the COE prices will be coming down anytime soon.

All the best.

Anonymous said...

When I was a poor child in 1960's, I saw affluent family has Ah Mah (Chinese maid) and personal driver. These scence can be seen in Thailand and Yuanmar today.

In 1983, I bought a 800 cc Suzuki at $16k. I sold it at $16k in 1989when Japan Yen appreciation.

If history repeat itself, you can buy a car!

Mao said...

I sold the Suzuki and keep $16k until I need a car again. In 1995, I bought a new Fiat at $56k with COE. After 4 years, I pocket $40k when COE was sky high. It was a period when a car price can buy 3 cars in Australia!

If u can afford a car, invest it with Mr Tan Kin Lian's new company instead. Your money grow 5% per annual. Own a car, your money depreciated yearly more than 10% yearly (20% depreciation for the first year if new car).

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