Because bicycle dealers frequently keep a share of temporary COEs, according to transport economist Walter Theseira, the latest measures helped to deter speculation. They benefit from rising COE premiums because they can buy the motorcycle for more money even though they paid less for the qualification.
Before selling them to customers as a” new second-hand” product, the dealers will also register vehicles in their company’s name.
According to Dr. Theseira, an associate professor at the Singapore University of Social Sciences, people are sensitive to the” move matter” or the number of former owners, so this tactic is not used in the automotive industry.
Even if the car is owned by the dealer, people are unlikely to be prepared to pay the same price for it.
However, compared to motorcycles, cars depreciate greatly more.
“It is very risky for car dealers to hold COEs speculatively or to use them to register vehicles in their own name, when very expensive depreciation starts the moment registration is completed,” he said.
REAL People
Motorcycle dealers with a lot of Offerings are motivated to try to regulate the market price. Dealers can no longer benefit from the difference in COE premiums by holding onto old certificates for three months under the new regulations, & nbsp.
The payment for each charge is now higher if dealers place bids to raise the COE, and that money goes to waste when the coin expires.
However, dealers typically just place a bet on the car markets once they have identified the buyer.
“The dealer only executes the bid when there is a buyer who has already committed to the purchase and has transferred the COE bid deposit, and in many cases, also a deposit for the car itself,” said Assoc Prof Theseira.
He continued by saying that because the bet is made in the buyer’s name, dealers are not permitted to submit an offer without a payment and sales agreement.
The amount of money required up front would rise with a higher pay payment for cars, he said.
” However, I don’t expect that to have much of an impact on the market, as if you’re willing to pay S$ 200, 000 – S$ 300,000 for a car, is there really much difference whether you must pay, say, S$ 10, 000 as an upfront COE bid deposit, or even S 20, 000 or S 30, 000″?