21 August 2013

COE Climbing Up Again

When the government introduced the new borrowing policy, the COE price for Cat A plunged, but now it's going up again, I think the demand is there that's why dealers will bid for it, which also mean people are willing to buy it anyway.

Cat A COE on Aug 13 2013

Let's look at the new borrowing policy that was introduced this year.
  1. If your car OMV (Open Market Value) is <= S$20000, you can loan up to 60%.
  2. If your car OMV is > S$20000, you can loan up to 50%.
  3. The maximum loan tenure is 5 years.
So let's say you buy a S$95000 car, you have to pay S$38000 i.e. 40% in cold hard cash, as for the other S$57000, you can only loan up to a maximum of 5 years, say at 2.88% interest per annum, you will need to pay about S$1087 a month.

Car Loan Calculation

Top that up with season parking, ad-hoc parking, fuel, ERP, road tax, insurance, maintenance, ad-hoc maintenance, I think it can all add up to more than S$1600 a month, I can understand if people buy it as a family car and everyone helps to pay for it, but too damn expensive to buy it alone, car is a luxury item here.

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