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PR Newswire
21-02-2012, 07:58 AM
Cars are still so popular in Singapore even though they cost a bomb!
The Straits Times
Feb 21, 2012
budget 2012
Crowds flock to used-car centres after 2% fee waiver
IN A market of spiralling car prices, the removal of the Additional Transfer Fee levied on used-vehicle purchases will be a welcome relief to motorists at large.
And going by the crowds at the used-car centres on the first weekend of the fee removal, business for used-car traders is poised to accelerate too.
Singapore Vehicle Traders Association secretary Raymond Tang said that both the Automobile Megamart in Kampong Ubi and the West Coast Car Mart were 'packed' last weekend.
Mr Tang, who is also managing director of used-car company Yong Lee Seng, said his sales were more than 30 per cent higher than on previous weekends.
'The most important thing is that the crowds are back,' he said, attributing the surge in buyers mainly to the removal of the Additional Transfer Fee.
The fee, which had been in place since 1968 until its removal last Saturday, is a charge equivalent to 2 per cent of a used vehicle's market value.
Used-car trader Ricky Tay said it can be a sizeable sum - as much as $13,000 to $14,000 in the case of costlier cars.
He added that its removal ultimately benefited consumers as it lowers the cost of used cars.
'The bigger the car, the more you save,' he said.
But some dealers think the response to the fee removal is merely due to the novelty factor.
'People will grow used to it, and it won't be a big thing any more,' one dealer said.
Nevertheless, the fee has been removed at a time when the used-car market has switched to the fast lane.
Buyers have been veering towards second-hand cars since the supply of certificates of entitlement (COEs) - which buyers of new cars must secure via auctions - started heading south sharply some three years ago.
Last year, more than 126,000 used vehicles changed hands, a record number since 2001.
Looking ahead, the second-hand market will continue on its bullish track for at least a few more years.
Mr Vincent Ng, product manager of Honda agent Kah Motor, said the COE supply will 'hit bottom next year before moving up in 2014'.
CHRISTOPHER TAN
The Straits Times
Feb 21, 2012
budget 2012
Crowds flock to used-car centres after 2% fee waiver
IN A market of spiralling car prices, the removal of the Additional Transfer Fee levied on used-vehicle purchases will be a welcome relief to motorists at large.
And going by the crowds at the used-car centres on the first weekend of the fee removal, business for used-car traders is poised to accelerate too.
Singapore Vehicle Traders Association secretary Raymond Tang said that both the Automobile Megamart in Kampong Ubi and the West Coast Car Mart were 'packed' last weekend.
Mr Tang, who is also managing director of used-car company Yong Lee Seng, said his sales were more than 30 per cent higher than on previous weekends.
'The most important thing is that the crowds are back,' he said, attributing the surge in buyers mainly to the removal of the Additional Transfer Fee.
The fee, which had been in place since 1968 until its removal last Saturday, is a charge equivalent to 2 per cent of a used vehicle's market value.
Used-car trader Ricky Tay said it can be a sizeable sum - as much as $13,000 to $14,000 in the case of costlier cars.
He added that its removal ultimately benefited consumers as it lowers the cost of used cars.
'The bigger the car, the more you save,' he said.
But some dealers think the response to the fee removal is merely due to the novelty factor.
'People will grow used to it, and it won't be a big thing any more,' one dealer said.
Nevertheless, the fee has been removed at a time when the used-car market has switched to the fast lane.
Buyers have been veering towards second-hand cars since the supply of certificates of entitlement (COEs) - which buyers of new cars must secure via auctions - started heading south sharply some three years ago.
Last year, more than 126,000 used vehicles changed hands, a record number since 2001.
Looking ahead, the second-hand market will continue on its bullish track for at least a few more years.
Mr Vincent Ng, product manager of Honda agent Kah Motor, said the COE supply will 'hit bottom next year before moving up in 2014'.
CHRISTOPHER TAN
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