To The Moon

Just bought a 2nd hand car last year due to change of job and job requirement...

COE prices are simply insane, especially for new cars which easily hits above 100k for entry level car. I calculated that 2nd hand car gives more value compared to getting a new car. Even so, it's nonsensical as the COE only allows driving for 10 years and cost around 100k, when we compare to buying a small public housing in Singapore of 300-400k which last for 99 years, it simply doesn't make sense. 

The COE system is dependent on demand and supply. The narrative is that cos Singapore govt capped car growth, only when 1 car exit the system, then another car can enter the system. Hence, everyone is competing within the same pool. The issue is that when the system started, there are stretches of years with low supply and followed by years with high supply. This will result in upside down situation to prices especially when we are currently at the low supply stretch. Sg Govt is trying to control the supply by leveling the supply (ie. transferring high supply stretch to low supply stretch), however it will be a gradual process as they can only adjust according to confirmed deregistrations within the next few years. 

This crazy level of coe prices will likely persist for the near term , unless a sudden recession comes and do a thanos snap on the car demand. 

For those who want to own a car, it would be more cost effective to buy a 2nd hand car, to tide over until the stretch of high coe supply, then change for a new car. 

[Cry]   If not due to job requirement, I really won't want a car. Imagine what happens when we take the money for car ownership and throw inside stock market instead. Exchanging liability for assets... [Cry]  

can only hope that my remaining coe in my car, can last me until the next low Coe period.... [Blush]