[LTA] Three-Year Lock-In Period for Business-Owned Chauffeured Private Hire Cars to Enhance Stability of the Point-to-Point Transport Supply

[Ethan_]

To prevent phv business from enjoying best of both world: if no taker of their vehicle for phv rental, they cant sell the vehicle to individual

coe will go down because of this i think, especially in march/april

Think unless sell dirt cheap. If not, those in the know one will not even think about buying phv car for private use. The wear and tear is scary. Even those phv rental company also don't even repair all their cars to tip top, mostly do the necessary only. Especially those with big fleet. Where got time.

 

[Itsnotfunny]

they have the numbers lah
very obvious by this move
but got to say that this move by lta is a good one for normal folks who want to own a car


Read HWZ Forum Rules!

If have will not be afraid to show. Else many will think it’s another chicken wing with little value before wrection.

 

[TehOPengSiuDai]

They always like to throw in some bombastic words to make it look like a very good implementation.

I recalled last time mata also said Mas Selemat swam over to JB using an improvised flotation device. It was just non other than a swimming float.

Teach sinkies good English for free, no good?

 

[Chunchunmaru]

"We need to find a way to pacify the public without losing too much money from COE collection"

"Let's come up with something confusing"

"Let's make it sound like we're taking action"

"Let's just do something that will drop the price of COE by 5%"

"Why not all three?"

 

[bobo07]

How about commercial veh

All catch

 

[Comage]

Actually in the recent years, it has not been depreciating for some cars.

Yes, true for the popular PHV car models.

We shall see if this fix is going to make it right for these cars.

Note also that higher cc cars that are unsuitable as PHVs, have had a "normal" annual depreciation over the years - both brand new and used.

 

[Yaoxis]

I think means business owned cphv vehicle once registered cannot be sold to individuals or other non cphv vehs for 3 years.

meaning only can be sold / transferred to another cphv

basically like creating another class of veh.


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But those phv car purchases before 19 feb 2025 still can sell freely, not affected by the lock in period.

 

[TopGun]

Yes, the popular PHV car models.

We shall see if this fix is going to make it right for these cars.

Note also that higher cc cars that are unsuitable as PHVs, have had a "normal" annual depreciation over the years - both brand new and used.

No, because the COE has increased sharply over the past 4 years.

A car purchased in 2020 can be sold for close to purchase price in 2024.

 

[StoicGuy]

Teach sinkies good English for free, no good?

We need jamus Lim to interpret the context...

 

[clearwhitesky]

I have a feeling gov want to flush out all the rent company…

let say if a rental company owns 100 cars and they can’t sustain their salary, rental, bank loans, basically operation cost. They only have a depreciating assets like these 100 cars but they can sell it? It’s as good as forcing them to wind down their company or waiting for creditors to liquidate their business

 

[Sirlighty]

Think unless sell dirt cheap. If not, those in the know one will not even think about buying phv car for private use. The wear and tear is scary. Even those phv rental company also don't even repair all their cars to tip top, mostly do the necessary only. Especially those with big fleet. Where got time.

Yes you are right

it’s all about money and time

 

[Forever84]

No, because the COE has increased sharply over the past 4 years.

A car purchased in 2020 can be sold for close to purchase price in 2024.

Correction. The dealer will sell it close to 2024 prices.

The person who sell the car will only get scrap value

 

[yoongf]

There were many car dealers advertising 0 down immediately drive away ready for PHV use.

SGcarmart also hv many used cars only few months old.

All this suggest that car dealers are hoarding newly registered cars + COE?

 

[TopGun]

Correction. The dealer will sell it close to 2024 prices.

The person who sell the car will only get scrap value

Not true. But I shall not belabor the point.

 

[Comage]

No, because the COE has increased sharply over the past 4 years.

A car purchased in 2020 can be sold for close to purchase price in 2024.

2020 was the year of the pandemic.
That was when COE was all time low, Boss.

You take one car from 2022-2024... See if still can sell at a significant profit or not...

The one fact remains that the car once reach end of COE validity period, the value runs down to almost zero (save for scrap value, PARF value).

You will never see a car here selling for a profit on its last day of COE, compared to the first day when bought from dealer, brand new.

 

[sgggid]

this measure easily 5 years late lol... especially when COE is at the lowest supply .....when the supply increase they finally introduced lol...

probably LTA should also state the top 5 highest number of resale on that context last 5 years is which few companies and who is the directors and consultants....

 

[TopGun]

2020 was the year of the pandemic.
That was when COE was all time low, Boss.

You take one car from 2022-2024... See if still can sell at a significant profit or not...

That's exactly what I meant. That the trend in recent years was due to the increase in COE prices.

It's not a trend limited or unique to popular PHV car models.

Yes, true for the popular PHV car models.

We shall see if this fix is going to make it right for these cars.

Note also that higher cc cars that are unsuitable as PHVs, have had a "normal" annual depreciation over the years - both brand new and used.

 

[SecretAgent]

There were many car dealers advertising 0 down immediately drive away ready for PHV use.

SGcarmart also hv many used cars only few months old.

All this suggest that car dealers are hoarding newly registered cars + COE?

Yeah.. they buy and hold..
huat ah when coe goes up..

If cannot sell also nevermind... Throw to rental or leasing

For the big car dealers.. alot of factors at work. Such as currencies exchange rates differences and global supply chain, supply and demand etc.. if all the factors are favourable... They will just bid and buy... That will make them at least got cards in their hands.

The most expensive places to own a car in the world is Singapore.. you definitely won't get poor if you know how to do this trade here.

 

[Forever84]

this measure easily 5 years late lol... especially when COE is at the lowest supply .....when the supply increase they finally introduced lol...

Don't worry I foresee government will cut quota when we hit peak period of 2027.

The quota they cut will be more aggressive then now, then it will flow to 2032,2023.

This is will flatten COE curve

 

[Comage]

That's exactly what I meant. That the trend in recent years was due to the increase in COE prices.

It's not a trend limited or unique to popular PHV car models.

But the "trend in recent years" - does not change the fact that a car "is a depreciating asset in Singapore"... that's what I said initially.

Sure we can have the ups and downs that make it "profitable" to sell a car a year, even a month down the road (if COE prices spike harshly).

But at the end of the day... still a depreciating asset.

Not really. We all know cars are a depreciating asset, especially in Singapore...

This change closes the loophole of people buying brand new cars with $0 down-payment and car loans taken that is longer than MAS rules.