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PR Newswire
27-08-2012, 07:42 AM
Why is a car a necessity? As stated by Mr. Lionel Ng. It seems crowds are back and lapping up the (sky)-high prices, yet again! 
*For full article, please visit the website.
The Straits Times
www.straitstimes.com
Published on Aug 27, 2012
Crowds back at car showrooms
Drop in COE premiums helps boost sales over the weekend
By Chia Yan Min
CERTIFICATE of Entitlement (COE) premiums fell for the first time in several months, drawing buyers back to car showrooms.
Car dealers reported that sales last weekend were 5 to 20 per cent higher than on previous weekends this month. Indeed, at least one dealer reported an increase of 50 per cent.
Most declined to be named, citing competition issues. They agreed the increase is encouraging, but said it is too early to tell if sales will stay on an upswing.
COEs are used by the Government to control the annual vehicular growth rate.
Recently, premiums have hit record highs thanks to a sharp fall in the COE quota, causing car sales to moderate. COE supply is tied largely to the number of vehicles taken off the road.
At the close of the latest tender last Thursday, COE premiums in all categories except commercial vehicles ended lower for the first time in months. However, current prices are still among the highest seen since the start of the COE system 22 years ago.
A spokesman for Komoco Motors, the distributor for Hyundai, said that despite the fall in premiums, "there is still some resistance from prospective customers... sales have been hovering at a low level for a long time".
He added: "Though any fall in prices is encouraging to them, people are probably waiting for further drops... many have been waiting for a long time and probably don't mind waiting longer."
At Tan Chong Motor, the distributor for Nissan, Mr Ron Lim, the general manager of sales and marketing, noted: "The decline in COE premiums is significant in absolute terms, but as a percentage of the total, given the high premiums, it's only about 10 per cent - not a very large drop."
When The Straits Times visited a few car showrooms yesterday, buyers were indeed jumping on the lower premiums.
Finance manager Lionel Ng, 58, and his wife Grace Ng, 53, a homemaker, own a multi-purpose vehicle which will be 10 years old in October.
They have been on the hunt for a new car for the past year.
Motor vehicles that are more than 10 years old become "time expired" - they must have their COE renewed or be de-registered and scrapped.
Yesterday, the Ngs took advantage of the lower COEs to purchase a Toyota Altis, which will replace their current car.
Mr Ng said: "The COE is still very expensive but we cannot wait anymore - I feel a car is a necessity in Singapore, but right now, it's priced like a luxury item."
Ms Evelyn Tan, 36, who is self-employed, said the lower COE was one of the factors she considered before deciding to upgrade her vehicle. Yesterday, she traded in her three-year-old Toyota Vios for a Mercedes C-Class.
She said: "With the trade-in and lower COE, I'm getting a very good deal on my new car."
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*For full article, please visit the website.
The Straits Times
www.straitstimes.com
Published on Aug 27, 2012
Crowds back at car showrooms
Drop in COE premiums helps boost sales over the weekend
By Chia Yan Min
CERTIFICATE of Entitlement (COE) premiums fell for the first time in several months, drawing buyers back to car showrooms.
Car dealers reported that sales last weekend were 5 to 20 per cent higher than on previous weekends this month. Indeed, at least one dealer reported an increase of 50 per cent.
Most declined to be named, citing competition issues. They agreed the increase is encouraging, but said it is too early to tell if sales will stay on an upswing.
COEs are used by the Government to control the annual vehicular growth rate.
Recently, premiums have hit record highs thanks to a sharp fall in the COE quota, causing car sales to moderate. COE supply is tied largely to the number of vehicles taken off the road.
At the close of the latest tender last Thursday, COE premiums in all categories except commercial vehicles ended lower for the first time in months. However, current prices are still among the highest seen since the start of the COE system 22 years ago.
A spokesman for Komoco Motors, the distributor for Hyundai, said that despite the fall in premiums, "there is still some resistance from prospective customers... sales have been hovering at a low level for a long time".
He added: "Though any fall in prices is encouraging to them, people are probably waiting for further drops... many have been waiting for a long time and probably don't mind waiting longer."
At Tan Chong Motor, the distributor for Nissan, Mr Ron Lim, the general manager of sales and marketing, noted: "The decline in COE premiums is significant in absolute terms, but as a percentage of the total, given the high premiums, it's only about 10 per cent - not a very large drop."
When The Straits Times visited a few car showrooms yesterday, buyers were indeed jumping on the lower premiums.
Finance manager Lionel Ng, 58, and his wife Grace Ng, 53, a homemaker, own a multi-purpose vehicle which will be 10 years old in October.
They have been on the hunt for a new car for the past year.
Motor vehicles that are more than 10 years old become "time expired" - they must have their COE renewed or be de-registered and scrapped.
Yesterday, the Ngs took advantage of the lower COEs to purchase a Toyota Altis, which will replace their current car.
Mr Ng said: "The COE is still very expensive but we cannot wait anymore - I feel a car is a necessity in Singapore, but right now, it's priced like a luxury item."
Ms Evelyn Tan, 36, who is self-employed, said the lower COE was one of the factors she considered before deciding to upgrade her vehicle. Yesterday, she traded in her three-year-old Toyota Vios for a Mercedes C-Class.
She said: "With the trade-in and lower COE, I'm getting a very good deal on my new car."
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