The Big Read: Despite sky-high COE prices, Singaporeans’ car dreams never fade

Despite the rising cost of automobile ownership, approximately 60 % of our client base are first-time buyers, according to Mr. Kuanyu Tan, state head for Singapore at the online auto marketplace Carro.

We’re seeing desire on the rise, he continued. In Singapore, we sold more than 3,000 vehicles between April 2022 and March 2023, and we anticipate that this number will increase in the coming fiscal time 2024.

However, some market players noted that not all customers may experience the same level of demand.

According to Mr. Amos Wong, general manager of Autolink Holdings, the cost of used cars is also rising as more and more vehicle owners learn that a comparable-model new vehicle is now collect significantly more money than it did when it was first purchased.

According to Mr. Wong, the more price-conscious buyers looking for smaller,” bread and butter” type of cars are gradually being priced out.

According to TODAY’s interviews, the following are some typical justifications for purchasing a car: & nbsp,

a requirement for both family and work

Like Romulus, Calvin the monetary adviser’s decision to own his own automobile was motivated by fatherhood.

You won’t want to have to wait for a taxi or look about for car-sharing vehicles if you suddenly need to rush to the hospital around midnight because your kids are sick, he said.

When his younger daughter developed a 40 degree Celsius disease earlier this year, he had to hurry her to KK Children and Women’s Hospital at 1am.

Calvin claimed that having the confidence of his own vehicle was worth the superior he had to pay. & nbsp,

Mr. Amirul Azam, director of photography at the media conglomerate Blissful Studios, immediately used rented trucks to transport his equipment for shoots.

However, he claimed that as his company flourished following the COVID-19 crisis, it made more sense for him to purchase his own vehicle, which was eventually done in April 2022.

The 33-year-old said,” Renting a car with comparable usage patterns, just rental costs alone may attain around S$ 2, 000 ( a month ). & nbsp,

” I would be at the mercy of the vehicle presence, or absence thereof, if I were to take cars or PHVs, it may amount to about South$ 1, 300.”

convenience and comfort

When Mr. Syahiran gave birth to his first child, he was able to survive for roughly a month using only public transportation.

A year ago, when his wife was due to give birth to their second child and he had switched to a fresh career that offered more pay, the man made the decision to buy idling. & nbsp,

He asserted, however, that having a vehicle is not absolutely necessary for maintaining home life.

In the end, some people grew up without trucks, perhaps with three or four children, I mean. Therefore, Mr. Syahiran, who recently changed jobs once more and is now a financial advisor, said,” It’s not impossible —( it is) exactly the comfort level we want.”

Similar to this, Mr. Ben Tan, the task boss, who resides in Pasir Ris, primarily uses his vehicle to travel for work and leisurely activities. & nbsp,

You can certainly do without it; it’s just more easy, he said.

Imagery and love

One cannot ignore the” face” factor behind some Singaporeans’ desire to own a car, according to Associate Professor Nitin Pangarkar of the National University of Singapore Business School.

This was the case for businessman Aaron Rylan Keder, 35, who earlier this year spent more than S$ 1 million on a limited edition car called the Lamborghini Aventador Superveloce.

He claimed that when someone attends a business meeting, it’s likely that the other group has already conducted background checks on them.

Mr. Aaron, who runs companies in finance advisory, renovation, and property facilities management, said,” When I buy or own a car, it gives this man an air of trust and achievement.”

He claimed that having a specific car also entitles one to membership in special clubs and enthusiast groups, which offers priceless opportunities for business networking.

The luxury car market has seen” the most notable progress” over the past ten years, according to Mr. Chan from Sgcarmart.

This is particularly correct given the current high-COE environment. When it comes to COE shifts, the luxury segment is generally less price-sensitive, he continued.

According to Assoc Prof. Theseira, some consumers have continued to place a high value on the ambitious component of wanting to own cars.

Even though mass market brands frequently have comparable levels of safety, products, quality, and features today, the fact remains that luxury car brands in Singapore continue to perform properly.