Time to rethink COE system?

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(30-04-2012, 08:51 AM)yeokiwi Wrote: Why do you want to help the rich to pay less?
The tightening of car financing and reduce the loan tenure period will mean that the rich will pay less for a car since they can afford the car without a loan.

By the way, the statistics over the last ten years showed that the vehicle loan quantum remains relatively stable over the years despite increase in car population. So, the general impression that S'poreans are taking up huge loans to buy car is not necessarily correct.

With reference to the above which you mentioned, I have to clarify that my stance on reducing car population was more targeted towards those who take up significant loans to finance their car purchases. The rich totally can't be bothered if they pay say $10,000 more or less, as they will have the money to just plonk down in cash for the entire purchase price anyway.

As for your point in financial education, MAS has a program called MONEYSENSE which has been ongoing since 2004 - but I've yet to see young couples being more financially savvy and not plunging headlong into debt with huge car loans, expensive weddings and spending a ton on renovation for their new (and expensive) houses. I believe personal finance education starts at home - when parents pamper their offspring too much by "subsidizing" their lifestyle, how can the kids be expected to remain prudent in their spending?

As for your last point, I do recall an article (sorry forgot the link) which stated that car loan quantums are at record-highs (I think it was at a check with the banks). There were also some statistics which mentioned that the total amount of loans is increasing, in addition to the absolute amount of each loan. To me, this signals that more and more people are borrowing for their cars, and borrowing more for that matter. Smile
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/
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Messages In This Thread
Time to rethink COE system? - by Musicwhiz - 30-04-2012, 07:20 AM
RE: Time to rethink COE system? - by yeokiwi - 30-04-2012, 08:51 AM
RE: Time to rethink COE system? - by Musicwhiz - 30-04-2012, 08:59 AM
RE: Time to rethink COE system? - by kichialo - 30-04-2012, 09:11 AM
RE: Time to rethink COE system? - by Contrarian - 30-04-2012, 09:42 AM
RE: Time to rethink COE system? - by WolfT - 30-04-2012, 09:59 AM
RE: Time to rethink COE system? - by thefarside - 30-04-2012, 10:03 AM
RE: Time to rethink COE system? - by d.o.g. - 30-04-2012, 10:44 AM
RE: Time to rethink COE system? - by yeokiwi - 30-04-2012, 11:16 AM
RE: Time to rethink COE system? - by swakoo - 30-04-2012, 10:40 PM
RE: Time to rethink COE system? - by Musicwhiz - 30-04-2012, 11:15 PM
RE: Time to rethink COE system? - by ken - 01-05-2012, 12:24 AM
RE: Time to rethink COE system? - by Big Toe - 01-05-2012, 12:51 AM

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