4 ms·

I'm not sure what comparison you're trying to draw. Singapore has shown that restricting the supply of vehicles will drive the price higher. Yes, owning a vehi

by ddeck 12y ago

I'm not sure what comparison you're trying to draw. Singapore has shown that restricting the supply of vehicles will drive the price higher. Yes, owning a vehicle is extremely expensive in Singapore and many in that economy are willing to pay the price (by definition since it's an auction based system). I believe your parent was pointing out that the depreciation of the Tesla appears to compare very poorly with alternative vehicles, and potential buyers are unlikely to choose such an expensive option when there are far cheaper alternatives available. Singaporeans have no alternative.

crdb 12y ago
Well, it was a bit tongue in cheek, but I was specifically answering: "I don't think the market for $70k assets that lose 90% of their value in 5 years is going to be too hot". The COE loses 100% of its value in 10 years, but you still find plenty of buyers. Singaporeans have the alternative of not owning a car - both public transport and taxis are highly available, cheap and very pleasant to use. If you see a car as merely a means of transport in exchange for economic value, it makes no sense to own one at current market prices (it's cheaper to take a cab every day, for example - even if you live near the airport and work in CBD, a 15km commute, that's $40/day or $80,000/10 years). Why do some Singaporeans take out 30 year mortgages for the right to drive an average sedan for 10 years? What the COE taught me is the value of intangibles like status boost and the pleasure of driving for its own sake. This is more relevant to Tesla's target demographic than the considerations of the average second hand Toyota Corolla buyer (closer to where I would fit in, and why I'll never own a car in Singapore, no matter my net worth).