High COE prices seen driving small bus operators out of business

With the Certificate of Entitlement (COE) premiums for commercial vehicles reaching a new high on Wednesday, industry players say this is driving some small bus operators out of business.

And this may lead to a significant drop in the supply of school buses in the next few years.

In the latest COE bidding exercise, the premiums for commercial vehicles rose above S$71,000.

According to the Singapore School Transport Association, the COEs for some 1,000 school buses would be expiring in 2017.

That is because many school bus operators bought new fleets of vehicles or renewed their COEs when premiums plunged to as low as S$87 in 2007.

The association says if premiums continue to rise, it may be difficult for "single school bus operators" to cope, as they already face expensive oil prices and high insurance costs.

And with the Education Ministry's plans to make all primary schools single-session in 2016, this would mean the number of school buses would have to increase by 50 per cent by then -- causing a further strain on operators.

Wong Ann Lin, the chairman of the Singapore School Transport Association, thus suggests pulling school buses out of the commercial vehicles category in the COE bidding system.

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Record high for the commercial vehicle category COE is definitely not doing any good for the business owners. Such costs will either be pushed to the consumers resulting in inflation, or the business will simply go bust, especially with small transport operators in this case. Removing the need to bid for COE is not exactly a solution either as can be seen with what was done with the taxis in Cat A.

It is a great headache for everyone.

Loan curbs for used cars to stay for now: MAS

 It seems like the loan curbs for used cars are here to stay -- at least for awhile.

Despite representations from used car dealers, the Monetary Authority of Singapore (MAS) said on Wednesday that the financing restrictions remain relevant as it encourages financial prudence among consumers and exerts a moderating influence on COE prices.

Under current rules that took effect in late February, used-car buyers can borrow only up to 60 per cent of the car's purchase price, with the maximum period of the loan capped at five years.

The Singapore Vehicle Traders Association met MAS on Tuesday to call for a review of the curbs.

The association said many dealers are suffering, with business dropping by at least 50 per cent.

It is proposing that buyers be allowed to borrow up to 80 per cent of the purchase price, and for the loan to be serviced for up to eight years.

MAS said in a statement on Wednesday that it appreciates the feedback, emphasising that the financing restrictions are not permanent.

It also added that it will continue to monitor the situation and review the calibration of the restrictions in line with market conditions.

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Second hand car dealers will have to rough it out under the loan curb conditions, but the severity of the situation seems to be exaggerated as we all know how these dealers work. It will be good that the rogues close down for good.

Racing on AYE

Amazing stuff, when such a big group of highly tuned cars taking the expressway like a racing track. The red Honda Civic has got great balls and skills to have made that lane cutting maneuver.

HOWEVER, this is illegal. No matter how skillful you are, the rules of the road have to be obeyed at all times. By racing illegally on public roads, you're endangering yourself and every other road users' lives. Such actions must be condemn and the traffic police have to clamp down these racers.

How sending a "Brian O'Conner" as an undercover?

COE prices end higher across all categories

The gap in prices narrowed between big and small car Certificates of Entitlement (COEs) on Wednesday in the latest bidding exercise, as premiums rose across the board.

Wednesday's bidding is the first since an 8-per cent increase in COE quotas for the coming six months kicked in.

Premium for small cars went up by S$1,567 to S$75,556.

The COE price for big cars rose by S$1,211 to close at S$77,600.

The open category premium also increased S$1,187 to hit S$77,989.

The COE price for commercial vehicles saw the biggest jump of S$3,215 to reach S$68,251.

Motorcycle COE price went up by S$80 to end at S$1,792.

Car dealers Channel NewsAsia spoke with were not surprised by the price increases, and expect premiums to hover around this level in the months ahead.

Raymond Tang, honorary secretary of Singapore Vehicle Traders Association, said: "It's expected that (the prices in) all categories should be up, because the thing is that 8 per cent increase for the next six months is not enough to supply. COE of all categories have been suddenly moving up tremendously because of the demand for the new cars and that's why I think that it will still be going up."

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The demand for new cars is not letting down. It makes one wonder where did all these people come from huh? Having to afford a 40% downpayment in cash at least and financing the loan within 5 years.

Racing in KPE tunnel - Hyundai & Merc

What a close shave, looking like a scene out of the Hollywood movies. Great recovery by the Hyundai by the way. Good job in capturing these actions, the traffic police can better nab these reckless drivers with such an evidence.