COE and Car Prices

[dydx]

I think the gov is pretty irresponsible by allowing max ten years loan with 0% downpayment.
That is probably the reason why so many mercs and bmws are zooming around Singapore streets.

I like to believe that inherent to this 'non-interference' by the government is their desire to have more tax revenue from the COEs issued, while leaving it to the free markets - including the car financing market and the banks, supporting the new car market where the car dealers and buyers interact - to determine and stretch the upper limits for COE prices and for financing risks and costs, buyers of new cars are willing to bear.

The end-result of this is that there will be some buyers of new cars who have over-borrowed, or later suffer a loss of income and loan-servicing ability, end up having to forgo their cars or even suffer under financial troubles. Such sad stories would also extend to buyers of used cars, as prices - and financial risks - of used cars follow the rise of COE prices.

Just never forget that we are living in a high price risk market economy! And even though we have paid all the various types of taxes (including COE), don't expect a bailout from our government if we screw up in our financial affairs!