Here is the perspective of COE prices over the last 4 years.
A almost parabolic spike in COE prices, combined with a huge surge of demand, clocking up 70% more than quota. While backlogs are cleared, prices should remain high enough, and when that backlog clears up, together with a global shock, it would send prices down. Affecting the economic backdrop hard enough, the shock would have ripples that sends unemployment shivers out again.
I think high COE will linger, but at very high risk of a crash some time soon... Cars are way too overvalued now. Anyone getting a car now is a greater fool in my humble opinion. The debt taken on is just not worth it, unlike a couple of years ago when there were no other threatening economic backdrops.
No comments:
Post a Comment