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Motorcycle COE quota drastically reduced

Posted: Sun, 02 Feb 2014 1:47 pm
by Wd40
http://www.channelnewsasia.com/news/sin ... 54134.html

They have reduced the quota by 25%. COE prices for motorcycles in the last bidding went up from $1700 odd to $2700 odd.

Expect motorcycle ownership costs also to go up in the near future.

Posted: Sun, 02 Feb 2014 2:11 pm
by PNGMK
I've never understood their 1:2 ratio (2 motorbikes take up the space of 1 car on the road) - it's more like 1:4 or even better.

Thank God I bought a new bike with a new COE last month.

As the article points out;

Last year, there were about 145,000 motorcycles, an increase of only nearly seven per cent over a period of 10 years. This compares with a 52 per cent growth in the number of cars over the same period.

Quite daming. I've been a bit suspicious of the Singapore gahmen attitude (particularly the LTA which has become quite acrimonious) towards bikers though for awhile....

Posted: Wed, 05 Feb 2014 5:15 pm
by Wd40
Motorcycle COE hits $3051.

Its amazing how everything appreciates in Singapore. My bike's suddenly become more valuable today than yesterday. :)

Posted: Wed, 05 Feb 2014 5:26 pm
by Sergei82
Can somebody explain me a clear mechanism by which COE quotas and prices affect motorbike prices?

Posted: Wed, 05 Feb 2014 5:40 pm
by PNGMK
Sergei82 wrote:Can somebody explain me a clear mechanism by which COE quotas and prices affect motorbike prices?


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).

Posted: Wed, 05 Feb 2014 6:18 pm
by Wd40
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 year :)

Posted: Wed, 05 Feb 2014 6:45 pm
by zzm9980
Wd40 wrote:
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 year :)


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)

Posted: Wed, 05 Feb 2014 6:48 pm
by Sergei82
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.

Posted: Wed, 05 Feb 2014 6:58 pm
by PNGMK
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.


Older bikes aren't that accident prone.... tyres of course are an issue.

But yes, it's very easy to sell older bikes here... I've sold two lost month to the first caller.

Posted: Wed, 05 Feb 2014 8:18 pm
by x9200
Is this all to make the low end of the society less mobile?

Posted: Wed, 05 Feb 2014 9:25 pm
by zzm9980
x9200 wrote:Is this all to make the low end of the society less mobile?


Force them on to the MRT!

Posted: Wed, 05 Feb 2014 9:47 pm
by Wd40
x9200 wrote:Is this all to make the low end of the society less mobile?


I dont think majority of the riders can be classified as low end of the society. From my observation, the people who ride bikes are
1)The Malay community youngsters are really into biking. Especially if you see girl riders, more than likely that its Malay. They really like Kampung style and love to buy HDB at ground floor and have a garden outside and also park a bike there :)

2) There are lots of old timers who ride bike

3) Students ride motorcycles.

Posted: Wed, 05 Feb 2014 10:33 pm
by x9200
There are a lot of Malays and Indians and the girls do not count. If this is not the low end how it is possible that many construction site has swarms of m.bikes parked around? Hardly any other setting yields in similar observation. Management and engineers rides all these 100-150cc Hondas, Yamahas etc?

Image

C'mon.
Young and passionate riders are easy to be distinguished from that crowd. They contribute maybe in 30% max and they ride a different class of motorbikes like b-class Kawasakies, Bajajs, etc ... all what they think has a look or elements of the unrestricted class.

Posted: Wed, 05 Feb 2014 10:46 pm
by PNGMK
zzm9980 wrote:
x9200 wrote:Is this all to make the low end of the society less mobile?


Force them on to the MRT!


You gotta wonder. I figure some minister had his car dinged by a bike and is seeking revenge. Aholes.

Posted: Wed, 05 Feb 2014 11:08 pm
by x9200
Yeah, this is exactly the side effect I thought about so I just don't get it (too). I though 3/4 of the complains against the foreigners were about the overcrowded infrastructure.