Thursday, February 28, 2013

Second-hand car dealers expect vehicle sales to fall


Some second-hand car dealers have described the recent new measures taken to cool the automotive market as a "drastic" move.

They cautioned that the move may even cause used-car sales to fall by more than half.

Car dealers said that prospective car buyers are usually young people with limited income, or families with children, and they are usually customers who take car loans.

However, with the tightening of measures on car loans and registration fees, car dealers said this will have a significant impact on car buyers.

Mr Eddie Loo, Owner of CarTimes Automobile, said: "It will affect the used car market very badly. Because those who bought the used cars, definitely they have some financial difficulties so with this down payment of 40 per cent to 50 per cent, it will definitely drive all the customers away from the used car market or even from buying a car."

SOURCE

Yes, the new policy is here to stay, no matter how bad it can be to some. To the dealers who have been enjoying the golden period of high COEs for the past 24months, it is now time to suffer from the wrath. 

The cars you took in on low value has been selling at significantly high prices due to the COE. Right now, many will be stuck with the cars as less people are able to afford the 40% downpayment.

To those who are thinking of making their car purchases with 100% on maximum 10years loan period, it is now time to come back down to earth and stop dreaming.


Monday, February 25, 2013

MAS imposes restrictions on private car loans


The Monetary Authority of Singapore is imposing restrictions on loans for private cars to safeguard against borrowers defaulting on their repayments.

Beginning on February 26, the central bank said consumers will be limited to borrowing 60 per cent of the purchase price of a motor vehicle when the open market value (OMV) is S$20,000 or less.

A tighter limit of 50 per cent will be imposed when the OMV is more than S$20,000.

The MAS is also capping the tenure of a motor vehicle loan at five years.

"The financing restrictions are necessary to encourage financial prudence among buyers," the MAS said in a statement.

"In this prolonged environment of very low interest rates, there is greater risk of buyers over-extending themselves," it said.

The new restrictions do not apply to loans for either commercial vehicles or for motorcycles.

For re-financing facilities, only the cap on loan tenure applies.

The MAS previously had in place financing restrictions on car loans from February 1995 to January 2003.

SOURCE

What a surprising move by MAS!! Well it seems that this isn't the first time they've done this according to the report above. I can safely say it will be very hard to hit $100k COE now. Next week will be the first round bidding for March, it will be very interesting to see how the prices go,

Limiting buyers to only 60% loan will take a huge hit on premium car dealers, namely the BMWs, Merc etc etc. A $180k Merc C180K will now require buyers to pay a downpayment of $90k in cold hard cash, with the balance being repaid within 5years.

This will weed out buyers who leverage too much on bank loans. To those who are cash rich, it is time to pounce!!

Wednesday, February 20, 2013

COEs for vehicles lower across the board


Certificates of Entitlement (COEs) for vehicles fell across the board in the latest bidding exercise on Wednesday, led by the small cars category which dipped 10 per cent.

The premium for small cars (Category A - 1,600cc and below) showed the sharpest decline, down S$8,808 from the previous close to S$78,301.

The steep drop caught some car dealers by surprise. However overall, a decrease in prices was expected.

Raymond Tang, Honorary Secretary of the Singapore Vehicle Traders Association, said: "At this time in February, the season -- Chinese New Year ... so there is a lull period of the holidays."

He said everyone may be holding back during this period, adding that he expects premiums to peak around the middle of the year.

The COE for big cars (Category B - 1,601cc and above) fell S$234 to end at S$92,667.

In the Open category, the premium dropped S$2,980 to S$91,910.

Motorcycles COE stood at S$1,512, down S$270.

The premium for goods vehicles and buses cost S$53,489, down S$1,500.


There is a very high chance that the car buyers will be back in full force starting March. That will push the COEs up after the lull CNY period.



Wednesday, February 13, 2013

Cable catches fire in tunnel at Newton MRT station


A cable caught fire in the tunnel at Newton station, causing train services on the North-South Line to be disrupted on Wednesday morning.

SMRT said the fire has been put out.

In a tweet by SMRT, it said northbound train service from Marina Bay to Toa Payoh is expected to resume at 11:25am.

In a statement, SMRT said the incident happened at around 9:05am.

Free bus services were activated immediately between Newton and Toa Payoh stations.

In addition, the train operator said bus bridging services were provided for commuters between Marina Bay and Toa Payoh stations.

At 10am, the northbound train service between Marina Bay and Toa Payoh was disrupted as traction power was switched off for the removal of the damaged cable.

At 10:40am, SMRT said it is working closely with the police and SCDF to recover train services. It advised affected passengers to take free bus services available at affected stations, the Circle Line or the North East Line.

SCDF said they were informed of the incident at 9:04am and despatched two red rhinos, two fire engines, two fire bikes, two support vehicles and an ambulance to the Newton station.

SCDF added that the fire involved electrical wiring about five metres away from the platform of the station.

The fire was extinguished using fire extinguishers and a small quantity of foam.

It added that no injuries have been reported so far.

Investigations into the cause of the fire are ongoing.


SOURCE

SMRT is burning itself, literally. As far as my memory serves me, I think this is the first time a fire of such a "big" extent happens at a train station. What's more it's the first working day of the week, right after Chinese New Year. The cable was probably still in holiday mood.

Jokes aside, it is important that there is no casualties. SMRT will have to investigate thoroughly on why a short circuit happened.









Sunday, February 10, 2013

New taxi availability standards benefit commuters


The National Taxi Association said on Sunday that the minimum standards for taxi availability, which kicked in this year, have resulted in shorter waiting times for commuters in the city area.

Its advisor, Ang Hin Kee, said freeing up restrictions within the Central Business District have meant shorter queues at taxi stands.

However, he added that the new guidelines have also led to some concerns among cabbies that they would have to bear penalties imposed on operators for not meeting these standards.

Mr Ang gave the update after meeting some 600 taxi drivers at Changi Airport on Sunday morning.

Since January, cab companies have to meet new standards for taxi availability.

They include requiring 70 per cent of all taxis per cab company to reach a minimum daily mileage of 250 kilometres. This translates to about eight to nine hours on the road per day, five days a week.

Cab companies will also need to ensure that 70 per cent of their entire fleet are on the roads during the morning and evening peak periods.

The bars will be raised to 80 per cent next year and 85 per cent by 2015 for both the minimum daily mileage and peak hour availability.

Based on these indicators, authorities will evaluate whether to allow the taxi companies to expand their fleet.

Mr Ang said some drivers experienced empty cruising in order to fulfil the indicators because there are not many relief drivers available.

He added that elderly drivers have also expressed some pressure in meeting the taxi availability indicators.

Mr Ang said these drivers would need time to re-adjust their driving habits.

And even as the Land Transport Authority reviews the scheme in six months, Mr Ang said more can be done to enhance the availability of relief drivers.

He added: "That is to encourage all new taxi licence holders, those who have never driven before, who just recently got their license, that they should serve as a relief driver for at least a year or two.

"That would provide them both the experience and lessen their pressure from having to hire a vehicle on their own. On the other (hand), it will also increase taxi availability because each cab will now certainly find it easier to have two drivers to ply the roads."


SOURCE

Hopefully such a move will be more pros than cons. We are going to need more part-time drivers to help clock the mileage for the older drivers. Seriously speaking, it is very tiring to ask a driver above 60 years of age to drive 9 hours a day. Their focus will not be 100% all the time, and it can be dangerous to themselves and other road users.

 

Rental cars fully booked despite higher rates


Car rental firms in Singapore are charging more this Chinese New Year, but their customers are still rushing to book cars for use during the festive period.

A check by The Straits Times showed that rates have gone up by about 10 per cent.

Despite this, 10 out of the 15 companies contacted said their vehicles were fully booked weeks in advance.

Rental firms and their customers said the convenience still beats cost.

"Renting a car is more convenient than taking public transport as I have to carry bulky items," said Mrs Liao Gek Leong, 58, a finance executive who sold her car last year. "Cabs are also not always available, especially during the peak holiday period."

Demand could also have gone up due to increased certificate of entitlement premiums and high car prices, added Mr Ho Kok Kee, manager at Popular Rent A Car.

A spokesman for A Car Rental said on average, it is charging between $50 and $100 more this year. At Absolut Motor, a seven- day Chinese New Year package for a 1.5 litre car costs $888, versus $788 last year.

Some customers, who wanted to beat the rush for rental cars, placed their reservations two to six months in advance.

"We have been fully booked since three months ago. Customers made bookings as early as June last year," said Mr Jeremy Chong, manager for Eazi Car Leasing & Marketing.

Despite the higher cost, rental cars could make sense for those with a hectic festive visiting schedule.

Senior executive Catherine Yip, 46, said she has many relatives to visit and driving a rental car would let her manage her time better.

"When you add up (the cost of cab rides), it is around the same price as the rate for a rental car," said a spokesman for Dream Car Rental.

Dealers said their cars are most sought after between tomorrow and Feb 15. At Popular Rent A Car, the most popular model is the Toyota Corolla Altis. In-demand cars at other agencies include the Hyundai Avante, Honda Civic and Toyota Allion.

Rented vehicles are also popular for those heading across the Causeway.

"Most of our customers are permanent residents or Singaporeans who go to Malaysia to see their families. After all, Chinese New Year is only once a year," said Ms Marie Chew, managing director of ATS Rent-A-Car.

The company charges between $1,200 and $1,300 to rent a car that can be driven into Malaysia.

SOURCE

The rise in cost will not deter people who need the car during the CNY period. It's only once per year and we all know what a chore it is to get a cab. Renting a car will be the most viable option to attain the convenience of visiting during CNY.


Friday, February 8, 2013

ComfortDelGro posts 5.6% rise in full-year net profit


ComfortDelGro released its 2012 earnings results on Friday.

The taxi, bus and rail company saw its full-year net profit rise 5.6 per cent to S$248.9 million.

This came on the back of record revenue, which increased 3.9 per cent on-year to S$3.55 billion.

The taxi and bus businesses accounted for over 87 per cent of revenue growth during the year.

"Despite the significant challenges the Group faced in 2012, including weakened demand in some markets, we managed to seek out opportunities to expand and remain thankful that we were able to deliver another year of growth," said ComfortDelGro's managing director and group CEO Kua Hong Pak.

Bus revenue at SBS Transit increased by 6.1 per cent to S$600.9 million as average daily ridership grew by 3.1 per cent, more than compensating for a 0.5 per cent drop in average fares. For its core bus business, however, SBS fell further into the red, incurring an operating loss of S$14.7 million compared to S$6.0 million the year before.

Revenue from the taxi business was 10.1 per cent higher at S$824.5 million due to higher rental income from a larger fleet, new replacement taxis and a higher volume of cashless transactions.

Revenue from the rail system was also up 3 per cent to S$138.6 million as ridership grew.

Operating profit for the rail business fell 75 per cent to S$4.9 million due to higher staff costs from the start up of the Downtown Line.

The company's operating costs, however, were 4 per cent higher in 2012, topping out at S$121.1 million - mostly due to higher bus captains' salary and the foreign workers' levy.

Operating profits were up 3.3 per cent to S$412.3 million in 2012. Singapore accounted for 53.8 per cent of Group operating profit.

Mr Kua said he hopes 2013 will be a year of expansion.

He said: "We are always looking out for opportunities to expand, especially in the markets that we are in, and as you know, in the third quarter of last year, we were able to extend our presence in Australia to the acquisition of the Dean's bus line. We hope to do more of that this year and the years to come."

ComfortDelGro has proposed a final dividend of 3.5 cents per share.

This brings total dividend for the year to 6.4 cents a share, including the interim dividend of 2.9 cents a share.


SOURCE

While it is important that private entities generate profits, it should not be done with a compromise in services. It is undesirable that the bus sector is still making losses. Ridership rose 3%, and LTA will have to do something to ensure that SBS is able to cope with the rise and not simply squeeze the public commuters further.

Fast & Furious 6


Check this out. Another franchise of the F&F series. Looking very promising there. Opening on this coming 24th May


Wednesday, February 6, 2013

COEs down in all but one category


Certificate of Entitlement (COE) premiums dropped for all categories except for motorcycles at the end of the latest bidding exercise on Wednesday.

Prices for small cars in category A fell S$3,901 to S$87,109.

Category B prices for big cars were lower by S$2,600 at S$92,901.

In the goods vehicles and buses category, the premium fell S$2,062 to S$54,989.

The open category premiums fell S$2,999 to S$94,890.

The only category where premiums rose was the motorcycle category, which went up by a dollar to S$1,782.

Industry players attributed the dips to a couple of reasons – the recent parliamentary debates about COE premiums and the Chinese New Year period.

Following the recent parliamentary debates about COE premiums, industry players said car buyers are adopting a wait-and-see approach to see if there will be any measures implemented to alleviate the high prices.

And with Chinese New Year just around the corner, Mr Chin Kee Min, senior manager at KIA Motors, said those who wanted to buy a car before the new festive period would most likely have done so.

"People are also cautious about the economic outlook and are more cautious about how they spend their money," Mr Chin added.

Mr Chin said he does not foresee this downward trend will continue, given the small quota supply.


SOURCE

Quite a surprise? Not really. Even with the reduction in quota, the drop in COE should be attributed to the lack of buyers during the CNY period. The true reflection will surface from March onwards. The price shock will come later.

 

Tuesday, February 5, 2013

Transport system will have "enough buffer" for possible 6.9m people


Transport Minister Lui Tuck Yew has given the assurance that Singapore's transport infrastructure will have sufficient buffer to accommodate a possible 6.9 million population by 2030.

He told Parliament that commuters need not wait till then to find travelling more convenient.

Pointing to efforts to expand the rail and bus network, Mr Lui said commuters will begin to see improvements in the next five years.

The vision is to create a very convenient and high-quality public transport system by 2030, said the minister.

By then, the rail network will be doubled to 360 kilometres, with nine MRT lines to help spread the load from the current four.

But given issues like overcrowded trains and train disruptions in recent years,
Mr Lui said he understands why such a vision can be hard for Singaporeans to visualise.

"Seen through the prism of the current situation, I can appreciate how unthinkable it may seem that we can accommodate a population by 2030 that is 30% higher than today, even though we have firm plans to double the rail network over this same period. But I do believe we will begin to see a gradual but noticeable and perceptible improvement over the next five years," he said.

Mr Lui said that by 2017, the Downtown Line, for example, will add significant new capacity to the east-west corridor. The re-signalling project and additional new trains to be rolled out on existing lines will also help.

"During the busiest one hour in the morning, our assessment is that we will have the capacity to carry 70 percent more passengers into the CBD in five years' time compared to what we have today. And I do not expect such a sharp increase in ridership. Hence what this implies is that for most commuters taking the train into the city, the journey will be less crowded by then," he said.

Incentive schemes to encourage commuters to spread their travel outside the peak hours may also be improved, possibly later this year.

Mr Lui said: "Commuters who are able and willing to travel off-peak on the SMRT network today can save up to 50 cents off their rail fare if they exit at the designated stations in the CBD before 7:45am. The scheme has seen some initial success, with about 3% to 4% of commuters move their travel out of the peak period. We will continue to see how it can be made even more effective, and will consider further improvements, possibly later this year."

As for buses, there are plans to speed up the five-year Bus Service Enhancement Programme (BSEP) launched last September.

Another 190 buses will be added this year.

This would mean that half of the 550 buses promised under the programme will be on the roads by the end of this year.

Private bus operators will be roped in to help run new routes.

And more City Direct-type bus services, which run along expressways, will be introduced.

To improve waiting times, there are plans to possibly introduce an incentive and penalty system based on commuters' expected waiting times.

Such a system is already introduced in cities like London and Seoul.

The Land Transport Authority will begin trying out the scheme on some services in the second half of this year.

In addition, nearly S$50 million will be spent over the next two years on measures like adding 30 kilometres of bus lanes.

The Mandatory Give-Way scheme will be extended to another 150 bus stops and the number of bus hubs will increase from 10 to 40.


SOURCE

During the week of the by-election, they reveal all the good news on public transport, planning all the way ahead till 2030. Then a week later came the White Paper, which gave all citizens a shock with the 6.9million figure.

Suddenly all the good news have been wiped out clean by this figure. But then, I will still like to give the LTA a chance to prove themselves. Yes, they're definitely behind time with the infrastructures, but they're doing something about it now.

It awaits to be seen how much faster can they catch up with the rise in population. The verdict will come in 2016.


Saturday, February 2, 2013

Ferrari's Alonso predicts tighter 2013 F1 race


Fernando Alonso said on Friday the battle for Formula One supremacy could be a lot tighter this year ahead of his bid to improve on two runner-up places behind Sebastian Vettel with a maiden title for Ferrari.

Last season's world championship was remarkable for the fact there were seven race-winners in the first seven races before Alonso went toe-to-toe with Red Bull ace Vettel in a decisive, thrilling finale at Interlagos.

Vettel, the sport's youngest-ever three-time world champion (2010, 2011, 2012), finished sixth at the legendary Brazilian circuit, where Alonso was second, to beat his Spanish rival to the title by only three points.

Alonso, speaking at the launch of Ferrari's new F138 car for the upcoming season, indicated that their anticipated duel in 2013 could leave rivals trailing in their wake from the season-opening Australian GP in March.

"I think the likelihood of seeing seven different race winners in the first seven races, like last year, will be impossible," he said.

"There will be a maximum of two or three teams" battling for the title, he added, "and one of those will definitely be Ferrari."

Alonso, a two-time world champion with Renault in 2005 and 2006, joined Ferrari for the 2010 season and finished runner-up to Vettel.

He finished a disappointing fourth in 2011 but in 2012 won three times and secured a total of 13 podium places before being pipped by Vettel at the finish.

Afterwards, he said: "Next year, we will try and improve the car, trying to start further up the grid, thus avoiding accidents. Let's hope we also have a bit more luck."

The F138 - whose name represents the current year and the car's V8 engine, which will be used for the last time this season - was unveiled at Ferrari's Maranello headquarters in northern Italy on Friday.

Ferrari described it as "an evolution of last year's race-winning car, although every single part has been revised in order to maximise performance while maintaining the characteristics which were the basis of the F2012's superb reliability".

"The rear of the car is much narrower and more tapered than before," said Ferrari, although "significant modifications will be made to the car's aero package" before the Australian Grand Prix on March 17.

One major change Ferrari has made, one year ahead of schedule, is in the electronics domain with the early introduction of the single control unit that will be used in 2014.

Alonso is set to get his first taste of the F138 at a pre-season testing session in Barcelona from February 19. It means Brazilian Felipe Massa will be at the wheel for the first pre-season test at Jerez in Spain next week.

Massa, who finished seventh overall last season, believes the car is equipped sufficiently to allow Ferrari to aim for both the drivers' and constructors' titles.

"I hope it will bring the two titles to Ferrari. It's the only thing we want," he said.

Ferrari chairman Luca di Montezemolo said last year he wants to see three-times champion Vettel race for the Italian team in the future.

But on Friday Di Montezemolo ruled out the possibility of seeing Alonso and Vettel in the same team. "Absolutely not," replied Di Montezemolo.

SOURCE

The final year of the V8 era in Formula 1. Will this finally be Ferrari's year after Kimi last won the title with the scarlet red outfit in 2007? We will know when the season kicks start in Melbourne on March 17th.


Friday, February 1, 2013

Motorists can expect more 'eyes' on the road


The Traffic Police are keeping a closer watch on the roads.

Besides deploying more officers, they are also studying the possibility of adding more speed cameras.

The move is aimed at tackling the increase in traffic violations by motorists.

Last year, the Traffic Police recorded 327,500 traffic violations - 3.6 per cent more than the year before.

This was 316,214 in 2011, and 304,472 in 2010, and these numbers make up offences committed by both motorists and pedestrians.

That's an average of about 900 violations every day.

Most involved motorists speeding and beating red lights.

Other violations include road-hogging, using a mobile phone while driving, and failing to signal.

And it's a problem the Traffic Police plan to come down hard on.

Mr Cheang Keng Keong, Commander of Traffic Police, said: "When they do not see us around they will try to take a chance and commit traffic violations, and that's why we need to increase our presence on the roads itself."

To do this, they will beef up enforcement by deploying auxiliary police officers, digitise current enforcement cameras by 2014 so that summonses can be issued more quickly and study the possibility of adding more electronic eyes to the roads.

In response to this, the Singapore Road Safety Council said in a statement that it welcomes the increased measures by Traffic Police to target such high-risk behaviour.

Its Chairman Bernard Tay said: "These are urgently needed for the protection and safety of other road users. The new measures will also deter other motorists who are tempted to flout safety rules whenever they are in a hurry."

On the whole, the traffic situation last year has improved, with fewer accidents and casualties.

There were 7,168 accidents involving injuries and fatalities in 2012, a drop of nearly 760 cases, compared to 7,926 accidents in 2011.

The total number of road fatalities also dipped - registering a decrease from 195 in 2011 to 169 in 2012.

Figures for two groups of road users - motorcyclists and their pillions, as well as pedestrians - also saw improvement.

Motorcycle fatalities fell to 76 in 2012, from 99 the year before, while pedestrian deaths dropped slightly - from 49 in 2011 to 44 in 2012.

Still, the police say it's important to drive home the importance of safety - through stepped-up community engagement and outreach efforts.

Children are one group of road users the Police will pay close attention to.

Other road users the police consider vulnerable include cyclists and the elderly.

Mr Cheang added: "I think besides the ongoing programmes we have with the schools, and the visits to the road safety park, we're also in discussion with MOE to customise certain programmes for the schools. And we've also started some programmes with the pre-schoolers whereby they're given road safety tips even at a young age."

The police are also looking into the possibility of harsher penalties for traffic offences that occur in school zones.

Accidents involving heavy vehicles have also come under the spotlight.

This comes after the recent case of two brothers Nigel and Donovan Yap, who were both killed earlier this week a cement-mixer truck.

Traffic Police say accidents involving heavy vehicles with injuries or fatalities made up just 3 per cent of the total number in the last three years.

The top causes of accidents involving such vehicles are failure to keep a proper lookout for other road users, failure to give way to traffic with right of way and failure to have proper control of the vehicles.

But there'll be no let-up on enforcement, and police will continue to work with companies that have large fleets of heavy vehicles, to advocate safe road habits.

In 2012, 4,441 summonses were issued to heavy vehicle drivers, up from 4,294 in 2011, and 3,646 in 2010.

More initiatives to improve safety are in the pipeline, and details will be made available in the upcoming Budget debate.

SOURCE

Less traffic accidents but more traffic offenses. I concur this to the increase in enforcement rather than our roads getting more dangerous. Coupling with the fact that more cars are being fitting with in-car DVR these days, it gave the public a perception that there are more accidents occurring.

Being a driver myself, it is crucial that one drives with extreme care and awareness. A simple mistake on your side is enough to cost lives. So please, keep your skills and rules in check.