Thursday, March 21, 2013

Expensive as buying car in Singapore

 income per capita among the highest in the world, but there are not many Singaporeans afford to buy a new car ...


Recently, the Government of Singapore has adopted additional measures to cool the car market.Are among the most expensive real estate market and is one of the only cost of living "exorbitant" in the world, the island nation of Singapore now continue to mark to become one of the country where the owning a car is very expensive.
Recently, the Government of Singapore has adopted additional measures to cool the car market, including raising the minimum paid for each vehicle by 40 percent, shortening the time limit for loans vehicles to 5 years from the previous 10 years, in addition to increasing car ownership tax. The move has left many households in the island Lions all want to buy a car, or simply not have the financial ability to buy.
CNBC news agency said, although Singapore is one of the countries with the highest per capita incomes in the world, does not have many people in this country enough to buy a new car.
"This is beyond my reach, far away," 43-year-old fitness trainer Andy Siew, whose family income is about $ 9,650 / month, said. "Any house with the same income can not buy a car at this point."
Singapore before applying the new control measures, the cost of buying a car in this country was very high compared to other developed economies. All new vehicles sold property are taxed at the rate of 100% of the car. In addition, the buyer must pay to get a license circulation means (certificate of Entitlement COE) to the ownership and use of cars in 10 years. This is seen as a tool to limit the number of cars in Singapore, a narrow island with an area of ​​only 276 square miles.
Currently, the average cost to buy a COE in Singapore is around 87,000 Singapore dollars (approximately $ 70,000). COE, the total cost incurred to own a sedan "generally high" Singapore as Corolla Altis up to about $ 120,000, while the car is priced to sell in neighboring Malaysia from only $ 34,000 , in the U.S. from $ 16,000, and in the UK from 20,000 USD.
According to Mohit Aroa, Managing Director in charge of Asia-Pacific research firm JD Power & Associates, Singapore's new control measures are the average customer money out of the car which already markets the country's harsh.
"Stay anywhere in the world, owning a car sent messages about their place in society. I think this is becoming more difficult for ordinary people in Singapore, "said Mr Arora.
Even in the high-end segment of the market, car buyers also feel "heat" from the new measures that the Government of Singapore made. A salesman at a company selling luxury car in Singapore said, since the measures were announced last week, they found that the sale of the car becomes really difficult.
"Everyone thinks if 100,000 Singapore dollars at the moment, they will not buy a car buy a house," the salesperson said. His company specializes in selling high-end cars, which cost an average of 200,000 Singapore dollars.
Singapore property-class infrastructure system, but the country's population had jumped from 4.2 million to 5.3 million in just 10 years, leading to over-crowded condition of transportation such as trains, buses and roads. Is the number of cars being circulated in Singapore reached 965,000 vehicles.
The Singapore government has stepped up the public transport system to encourage people to reduce private car use, but analysts and people said that this service is not good enough to create greater attraction.
"Our transportation system is not really good ... The train and the bus is not on time, taxi sometimes very difficult call, especially on rainy days or during peak hours," he said Siew.
Therefore, in parallel with the increase in the burden on the transportation system in Singapore, owning a car for the people in this country become a need rather than a way to show the elegance.

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