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> People also choose to get a car loan, again increasing the cost. Sorry, could you please explain how car loans increase the cost? > Of course, the COE is in
by eru 20d ago
> People also choose to get a car loan, again increasing the cost.
Sorry, could you please explain how car loans increase the cost?
> Of course, the COE is in addition to depreciation and maintenance, and those are both also expensive in Singapore. Plus people buy the cars through loans. And, excluding everything I've said above, the cars themselves are very expensive to buy!
In a sense, all these other costs don't really matter: if they increased (or dropped) by a dollar, in equilibrium the winning CoE bid would drop (respectively increase) by a dollar.
- Reubachi 20d agoIt is no hyperbole to say that 90 percent of car loans are between 8-14 percent interenst in the US right now. That is considering branded dealerships, partners, and used/CPO lots. A 10 percent rate on a 40k loan for a 60k mid-range SUV over 5 years is roughly 10k more in costs to the buyer. THis is the average purchase price/loan term in the US for new cars, at least. So while a 10k increase in price due to the loan isn't comparable to a 3-6x in price in Singapore, the infinitely higher amount of consumers in US caught in this trap is directly going into the selling agent's pocket. At least in SGP, that COE entitlement cost goes to "the state".