Only a certain number of COE's are released. The COE price is added onto the new price of the machine. A second hand machine's value increases proportionally (wrt life of the COE) when a new COE price goes up (or down).Sergei82 wrote:Can somebody explain me a clear mechanism by which COE quotas and prices affect motorbike prices?
Lets say you buy a bike when coe is $1000 and the machine price of the bike is $4000. So you pay $5000 total price. This COE is valid for 10 years. Now one year down the line lets say COE price goes up to $5000 and now buying a new bike costs you $5000+4000 = $9000. So even though you paid only $5000 to buy your bike, now buyers in the market will price your bike relative to the total price of the new bike. So instead of paying $9000 for a new bike, they would rather pay $6000 and buy a 1 year old bike. So you have made a cool profit of $1000 and you have ridden the bike for 1 yearSergei82 wrote:Can somebody explain me a clear mechanism by which COE quotas and prices affect motorbike prices?
Exactly what he said, except a 1yr old bike shouldn't depreciate that much in one year (since the COE in his example should be worth $4500, 90% of the current 10-yr price)Wd40 wrote:Lets say you buy a bike when coe is $1000 and the machine price of the bike is $4000. So you pay $5000 total price. This COE is valid for 10 years. Now one year down the line lets say COE price goes up to $5000 and now buying a new bike costs you $5000+4000 = $9000. So even though you paid only $5000 to buy your bike, now buyers in the market will price your bike relative to the total price of the new bike. So instead of paying $9000 for a new bike, they would rather pay $6000 and buy a 1 year old bike. So you have made a cool profit of $1000 and you have ridden the bike for 1 yearSergei82 wrote:Can somebody explain me a clear mechanism by which COE quotas and prices affect motorbike prices?
Older bikes aren't that accident prone.... tyres of course are an issue.Sergei82 wrote:That's disgusting! Everybody will try to buy older bikes which will increase accident rate and won't decrease number of bikes on roads in the short run.
I dont think majority of the riders can be classified as low end of the society. From my observation, the people who ride bikes arex9200 wrote:Is this all to make the low end of the society less mobile?
Users browsing this forum: No registered users and 5 guests