A smart investor may buy Singapore car COE similar to investing. COE price in Singapore has been bearish in Singapore over the past few years, although one could not “short” at COE but it is possible to wait to buy low for car/COE. Existing car owner may scrap the old car and sell back remaining COE at higher buying price last time, buying new car at lower COE.
Singapore car COE Cat A of $25000 may be considered Low Optimism <25% if past $1 COE is considered a very rare case which may not be repeatable. More conservative car buyer may consider to buy when COE falls below $15000 at even lower optimism supported by potential bearish stock or global financial crisis.
There are 3 possible cases with 3 unique strategies:
1) Current car owners who have renewed car COE already at higher price. They may scrap the car and get back COE at higher price when purchased last time. Buy new car with lower price.
2) Current car owners who will renew the car COE, similar to investing in stock at low optimism, since the trend is bearish, there is room for further correction. It is not wrong to buy new car or renew COE at current low optimism price.
3) New car buyer, current price discount is only for COE, not yet for new car as economy is still not bearish. With enough patience, it is possible to get car with Cat A COE < $20000.
Either buy car or buy stock, there is something in common: buy low. Always remember the principle of shopping when investing: Price is what you pay and value is what you get. Learn from Dr Tee on how to get high value investment with low price.
