Certificate of Entitlement. This is prerequisite under a vehicle quota system that applies exclusively to Singaporeans. We Singaporeans would be familiar as car buyers would toss this abbreviation up and down, doing long mathematical calculations on bidding prices. I remember years ago in mid 90’s to late 90’s, buying a car in Singapore would be an addtional 30-40k for COE on top of the car itself.

COE price is economically based on 2 major factors - how many COEs the govenment is willing to issue and the market demand. However, with the establishment of open bidding in 1999, the COE price in detailed transparency has dropped, stabilizing now at range generally between 8k to 15k. This desirable reduction is mainly due to the increased release of COE entitlements, based on the lowing importation tax to the secondary market for our used cars. Plus, the loosening of bank regulations by the government allow for cars to be purchase with minimal upfront payment, keeping the reminder tied down to the terms of installment.

Therefore in recent times, the car market volume is going up the roof. Folks in the Singapore are ever more keen then before in getting a car. I start to wonder if we are becoming a bigger debtor then ever to the banks. Many car buyers are attracted to the longer managable installment arrangment, making cars easily afforable at first glance. People figure out that as long as their they pay can cover the installments, I doing well enough to afford one. Point of consideration - Have you got the safety net for that?

In terms of depreciation, the day you buy your car is the day you start to lose money. (Unless you are talking about classic cars)

Firstly, most Singaporeans have our housing mortage to overlook. Now, as we start normalising that owning a car as a necessity, personal finances are continuing to tilt towards risky red zone. Many of us are in a “eye wide open” manner, increasing our liabilities and dependability to the banks. Even though getting a car brings along comfort, whole-being and happiness in a certain extent. We have got to look at the other end of the deal. Are we working longer, harder, pondering over bills near retirement ago? The lowering of COE prices may have inadvertently introduce a negative bait factor, compelling us to work even harder so that we can upkeep just like everyone else is working doing.