Is It A Good Time to Buy a Car in Singapore Now?

Is It A Good Time to Buy a Car in Singapore Now?

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COE price in Singapore has been skyrocketing in the past few months. 

If you bought a $TSLA car last year Mar, you need to pay $28k for COE. In this month’s latest bidding, the price for CAT B is $98k. That means, you need to pay $78k more this year just for the COE ?. That also means if you bought your car last year and sell it this year, you will get a decent profit. Buying car at the right time can be investing? That’s almost unheard off here…

This post was originally posted here. The writer, Shanison Lin is the Founder and CEO of InvestingNote, with a username known as @shanison.

For those who has been thinking of buying cars, you might also be thinking if COE price can go up further. Is it better to wait for COE to come down or buy first before it goes up further?

This thinking should sound very familar to everyone who invests in stock markets. This is what we are struggling with daily. What is the right price to buy/sell a stock (car in this case)?

InvestingNote convinently provides 20 years of historical price for COE of every category. $COE CAT A(CATA.COE) $COE CAT B(CATB.COE) $COE CAT C(CATC.COE) $COE CAT E(CATE.COE)

Can we apply technical analysis to the COE chart? Essentially the technical analysis is simply the study of  supply and demand forces reflected in the chart. COE price is also determined by supply of monthly quota and the demand for car ownerships (thus the bidding).

Let’s look at $COE CAT A(CATA.COE). The price hit the lowest level of $2 in 2008 (please share with us the joy below if you are the lucky guys who got it at this level ?). And the highest level happened in 2013 (if you don’t mind, you can share with us the tears below as well ?). The recent low was in 2018.

Interestingly for COE price chart, the uptrend and downtrend is very clear. And each uptrend or downtrend lasts roughly about 5 years. Judging from the recent low was in 2018 Dec, this uptrend looks like possibly of extending for another one year or two. The means 2023 or 2024…

For $COE CAT B(CATB.COE) it is similiar trend. There is also a classic double bottom reversal pattern.  

If you need a car badly now, the better way might be buying a second hand car first so you don’t have to commit for 10 years at this high price. If you don’t need a car badly, maybe it is better to wait. But if you want to wait for the COE price to be really very cheap, the wait will be quite long as the up trend is not yet even finished.

Thank God. SG has the best public transport in the world:) And car is just not necessary.

Save the money and invest in the stock market instead now! Hopefully you have enough good profit to afford a cheaper car a few years later.

At the mean time, InvestingNote has done a nice video on this   https://vt.tiktok.com/ZSdSBD19J/… Don’t forget to like and share it with your friends ? ?

‌What do you see from the chart? Share your thoughts with fellow INers. 

Disclaimer: Technical analysis is based on assumption that history repeats itself. This is not for recommendation. Do your own due diligence and judgement.‌

Latest COE bidding for reference https://www.motorist.sg/article/1387/april-2022-coe-results-1st-biddin…  The next COE bidding is also happening tomorrow Wed 20th Apr.

Once again, this article is a guest post and was originally posted on Shanison‘s profile on InvestingNote. 


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