{"id":2563,"date":"2016-06-04T00:49:31","date_gmt":"2016-06-03T16:49:31","guid":{"rendered":"http:\/\/tzlee.com\/blog\/?p=2563"},"modified":"2016-06-04T01:00:52","modified_gmt":"2016-06-03T17:00:52","slug":"mas-eases-curbs-where-is-coe-headed","status":"publish","type":"post","link":"https:\/\/tzlee.com\/blog\/2016\/06\/mas-eases-curbs-where-is-coe-headed\/","title":{"rendered":"MAS eases curbs; where is COE headed"},"content":{"rendered":"<p>If you&#8217;ve been following the news, you should have heard about <a href=\"http:\/\/www.straitstimes.com\/singapore\/transport\/bigger-car-loans-over-longer-tenures-as-mas-eases-curbs\">MAS easing the loan curbs<\/a>.\u00a0So where is COE headed? Most people <a href=\"http:\/\/www.mycarforum.com\/topic\/2695125-mas-to-revoke-loan-curb-soon\/page-13\">say it will go up<\/a>, but I think it will only inch up marginally.<\/p>\n<p>Reducing downpayment by 10% will help buyers reduce their upfront commitment by around\u00a0$8K (for a $80K car). If COE shot up in excess of $10K, <em>e.g. an $80K now costs $90K<\/em>, it would defeat the loan curbs ($32K vs. $27K downpayment).<\/p>\n<p>The extension of loan tenure from 5 to 7 years makes monthly commitments easier on the pocket, but right now most buyers waiting on the sidelines are likely more cash strapped. Remember: it is supply and demand that causes COE prices to move.<\/p>\n<p>Also, the <a href=\"http:\/\/coe.sgcharts.com\">number of COE quota available right now actually meets or exceeds that of 2008<\/a> when COE was &lt;$20K. With so many cars going to the scrapyards, we will see this quota sustain for quite a while. I believe this is the primary reason why the loan curbs were eased &#8212; otherwise we may see $20-30K COE by 2018. I believe the loans will be further relaxed in 2017 (to 80% + 8 years) if total quota exceeds 2,500 in each bidding. If the quota remains fairly constant, then there will be no change.<\/p>\n<p>In summary, I think COE prices will not move much&#8230; it may rise a little bit, with a little spike in the short term due to sudden demand, but should eventually stagnate around $50K for both Cat A and B.<\/p>\n<p><em>P.S. I can&#8217;t help but feel that LTA really screwed up on Cat A vs. B differentiation even when they had the one opportunity to do it right.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you&#8217;ve been following the news, you should have heard about MAS easing the loan curbs.\u00a0So where is COE headed? Most people say it will go up, but I think it will only inch up marginally. Reducing downpayment by 10%&#8230; <a class=\"more-link\" href=\"https:\/\/tzlee.com\/blog\/2016\/06\/mas-eases-curbs-where-is-coe-headed\/\">Continue Reading &rarr;<\/a><\/p>\n","protected":false},"author":2,"featured_media":2564,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[11],"tags":[315,334,389,357],"class_list":["post-2563","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-automobile","tag-coe","tag-loan","tag-lta","tag-mas"],"jetpack_featured_media_url":"https:\/\/tzlee.com\/blog\/wp-content\/uploads\/2016\/06\/Skyscrapers_near_Singapore_River.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/tzlee.com\/blog\/wp-json\/wp\/v2\/posts\/2563","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tzlee.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tzlee.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tzlee.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/tzlee.com\/blog\/wp-json\/wp\/v2\/comments?post=2563"}],"version-history":[{"count":4,"href":"https:\/\/tzlee.com\/blog\/wp-json\/wp\/v2\/posts\/2563\/revisions"}],"predecessor-version":[{"id":2568,"href":"https:\/\/tzlee.com\/blog\/wp-json\/wp\/v2\/posts\/2563\/revisions\/2568"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tzlee.com\/blog\/wp-json\/wp\/v2\/media\/2564"}],"wp:attachment":[{"href":"https:\/\/tzlee.com\/blog\/wp-json\/wp\/v2\/media?parent=2563"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tzlee.com\/blog\/wp-json\/wp\/v2\/categories?post=2563"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tzlee.com\/blog\/wp-json\/wp\/v2\/tags?post=2563"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}