Cars, Kereta

fatz

LTA to cut road tax by 15% for most vehicles from July 1
By Hiroshi Limmell, Channel NewsAsia | Posted: 05 June 2008 1851 hrs



SINGAPORE: The Land Transport Authority (LTA) will reduce road tax for most vehicles from 1 July. In a statement, the LTA said road tax for cars, motorcycles, taxis and commercial vehicles will fall by 15 per cent.

Electric and hybrid cars will also see a 15 per cent decline in road tax rates.

And it's also good news for Euro-IV diesel car owners. In February this year, LTA said the special tax for Euro-IV cars will be revised downwards. From July onwards, LTA will be reducing the special tax for Euro-IV engines, which is paid on top of the normal road tax for these vehicles.

Currently, the special tax is priced at four times the normal tax of a similar capacity petrol car.

The new rates will be lower. For example, the 6-months special tax for a 1.6 litre Euro-IV diesel car will be cut from the current S$1,488 to S$1,000. Ownvers will also have a reduced normal tax rate to pay for these vehicles, from the existing S$437 to S$372.

LTA said the revision is due to a reduction in carbon emissions by the diesel cars.

More information on the new road tax structure can be found at www.onemotoring.com.sg. - CNA/vm

fatz

June 6, 2008         
37 motorists caught nipping into bus-only lanes in 2 days
Videos taken by cameras aboard buses will be sent to LTA to decide on summons
By Hong Xinyi


FASTER RIDE: Commuters and drivers say there is noticeable difference in travel time now. -- ST PHOTO: ALBERT SIM

MOTORISTS had better think twice about nipping into the new full-day bus-only lanes in the Central Business District (CBD).

In just two days, 37 errant motorists have been caught in these no-go zones by camera-equipped buses servicing the area.

Among the many bus services plying the 11 full-day bus lanes there, 90 SBS Transit ones have these 'roving eyes' on board, and bus captains have been putting them on 'record' mode to catch bus lane violaters.

The CBD's full-day bus lanes and camera-equipped buses began operation on Monday. By the end of Tuesday, 37 motorists had been caught on video, compared with the 14 caught by the Land Transport Authority's (LTA) roving traffic wardens the same two days in these 11 bus lanes.

The videos of the 37 motorists will be sent to LTA, which will determine whether to issue summons.

Bus drivers and commuters told The Straits Times that the difference in travel time was noticeable, even though the scheme is barely a week old.

Bus driver Ng Leong Kuan, 51, said: 'Roads along places like Lau Pa Sat and the NTUC building have always been congested. But over the last few days, I haven't seen cars parked illegally in the bus lanes.'

Bus driver Wong Seng Chow, 24, said the number of drivers blocking his way in the bus lanes has gone down to two a day, from nearly 10 on some days.

Commuter Darrelle Eng, 23, has noticed that her usual 50-minute bus journey home from the CBD to Balestier has taken 10 minutes less this week, though she was unaware of the new scheme.

The account executive, speaking as a driver, added that the cameras would be a 'big deterrent' for her, in that 'I won't take the chance of using a bus lane if I think it will be filmed'.

Fellow commuter Kim Hoon, 31, who works in the Suntec area, did not notice big changes in her travel time, but conceded that the scheme was in its early days.

The CBD's 11 new bus lanes are part of a total of 23km of full-day bus lanes and 150km of normal bus lanes to be rolled out in phases by year's end. Some possible locations for these lanes include Serangoon Road, Jalan Besar, Robinson Road, Commonwealth Avenue and Simei Avenue.

hxinyi@sph.com.sg

fatz2

  Car owners can encash PARF and COE rebates from Sep 1
By Margaret Perry, Channel NewsAsia | Posted: 01 July 2008 1419 hrs

SINGAPORE: Car owners will now have the option to exchange their Preferential Additional Registration Fee (PARF) and the Certificate of Entitlement (COE) rebates for cash.

The change follows a government review of the rebates to make it easier for motorists to give up their cars and switch to public transport.

From September 1, registered owners of unused and valid PARF/COE rebates can apply to the Land Transport Authority for encashment.

Once their applications are processed, they will receive a refund equivalent to the rebate amount.

To facilitate the implementation of this change, PARF/COE rebates with expiry dates between July 1 and September 29 will be extended to the end of September.

Those affected will be informed of the revised expiry dates within the next two weeks.

Motorists who wish to use their PARF/COE rebates to offset the upfront taxes for a new vehicle can continue to do so.

The LTA said it will continue to issue rebates to car owners upon de-registration of their vehicles. The rebates will remain transferable and valid for 12 months to provide flexibility to vehicle owners.

Transport Minister Raymond Lim had announced in March this year that the government would be reviewing the PARF and COE rebates.

This was to tie in with the overall effort to make public transport a choice mode of transport for all commuters, including car owners.

The Automobile Association applauded the move and some car dealers said easier access to cash might tempt motorists to scrap their cars and not replace them.

However, not everyone agrees with this view. One transport analyst does not think this initiative will get motorists to switch from driving their cars to using public transport.

He said better information systems to take the frustration out of using public transport would, on the other hand, convince motorists that taking buses or the MRT is a reliable option.

Panels giving estimated arrival times are available at some bus stops, but providing accurate, factual information is more useful.

Associate Professor Chin Hoong Chor, Department of Civil Engineering, National University of Singapore, said: "Any estimate is subject to errors and is difficult.

"I think it's more realistic and perhaps more appropriate to tell how far the bus is away from the bus stop (such as) it is three bus stops away, instead of ten minutes or five minutes away."

He said this system would allow passengers to judge bus arrival times for themselves.


- CNA/yb/so

SQ154

CNG-car drivers may have to pay additional tax from 2010


SINGAPORE : A lack of refuelling stations is not the only concern worrying drivers who are considering switching to Compressed Natural Gas (CNG). Drivers of CNG vehicles may have to pay an additional tax from 2010.

Sales Manager Isaac Tan drives 35,000 kilometres a year - much of it for his job.

Earlier this year, he bought a new car and planned to convert it for CNG use, to save fuel costs and the environment.

But he changed his mind at the last minute, because of costs - even though buyers of hybrid and CNG vehicles benefit from the Green Vehicle Rebate. This gives the buyer a 40 per cent discount on the car's Open Market Value until 31 December 2009.

Mr Tan said, "I was surfing... the LTA website, ONE.MOTORING, and I realised there is this Special Tax involved on CNG. Right now, the government has waived it until 31 December 2009, but beyond that it's unclear."

Recovering fuel duty and discouraging the use of polluting vehicles are reasons for the Special Tax.

Currently drivers of petrol vehicles pay duty of 41 cents per litre of intermediate grade petrol every time they top up their tanks.

So the owner of a 1,500cc petrol car who drives the average 21,000 kilometres a year spends about S$3,550 on petrol, of which about S$660 is petrol duty.

But duty is not charged on diesel or CNG at the filling station.

And diesel engines create more pollution. For example, the latest EURO IV diesel engines create five times more of the pollutant called PM2.5 than a petrol-driven car.

Special tax for EURO IV diesel vehicles is pegged at S$1.25 per engine cc. So the owner of a 1,600cc diesel vehicle pays S$2,000 a year in Special Tax.

The owner of a 1,600cc diesel vehicle who drives the average 21,000 kilometres a year would spend about S$1,900 a year on diesel.

But CNG vehicles produce cleaner emissions than petrol vehicles, so are exempt from Special Tax until 31 December 2009.

The Land Transport Authority (LTA) has not yet decided whether to extend the exemption. But it said if Special Tax is imposed on CNG cars, it will not necessarily be the same as that on Diesel IV vehicles.

Mr Tan said: "The way the government is setting the policies - or not setting the policies, rather - is not helping the public. And in fact, if they really want to encourage the public to go to greener vehicles, then they should set the policies right in the first place."

LTA said it will announce its decision on the Special Tax for CNG cars in due course. So for now, drivers considering a CNG vehicle will have to live with the uncertainty of higher taxes in future or wait until a decision is made. - CNA/ms

fatz2

CNG car drivers run out of patience
There are 1,600 CNG vehicles but only two all-access CNG stations - and queues are long
By Alvin Lim


The queues at the Mandai station on Friday night. It takes at least 10 minutes to fill a CNG tank. Then the pump needs a short time gap before the next car can fill up. -- ST PHOTO: ALVIN LIM

Queues in Singapore usually mean what's at the end of the line is worth waiting for.

But don't tell that to the occupants in the long lines of vehicles that run on compressed natural gas (CNG), waiting at the only two fuelling stations.

Their long-suffering gripes: long queues, too few stations too far away, 10 minutes to fill up, up to a two-minute wait between cars, shut down of pumps during thunderstorms, and now, rising CNG prices.

The numbers, and the daily bottlenecks, tell their story.

There are now nearly 1,600 CNG-capable vehicles, up from about 550 in January.

They are served by only two CNG stations: one in the west, in Jalan Buroh, and one in the north, in Mandai.

A third fuelling station, run by SembCorp Gas on Jurong lsland, is not open to drivers who have no access there.

All in, the two available stations have just 10 pumps.

The Mandai station, managed by Smart Energy, has eight; the Jalan Buroh station, run by SPC, has two pumps operated by SembCorp Gas.

In contrast, Singapore's 531,590 petrol-driven cars can fill up within minutes at the 200 or so petrol stations islandwide, usually without any hassle.

For owners of CNG-driven vehicles, peak periods can mean an hour's wait.

It takes at least 10 minutes to fill a CNG tank with a typical capacity of 66 litres.

Then, there is a 'cool-down period' of one to two minutes before the next car can fill up - to 'drive up the pump pressure' first, a pump operator at Mandai said.

Motorist Prabhu Vivekananda, 38, a quality assurance manager, said: 'Sometimes a pump breaks down and it worsens the queues.'

Mr Yazid Yusof, 22, a driver for a parallel car importer, who takes up to eight cars daily to the Jalan Buroh station, said his wait could be as long as an hour each time.

The situation worsens in Jalan Buroh during thunderstorms as the pumps are shut down for safety reasons.

Another motorist, who wanted to be known only as Mr Chang, said he has 'no choice but to wait for the rain to stop'.

'It's not that bad because I live not too far away, in Bukit Panjang. Just imagine how it will be for a car owner who lives in Pasir Ris, in the east.'

He intends to give up his CNG-driven vehicle.

'My car is only two months old, but I'll sell it by the year's end. CNG is not for me,' he said.

Other than the desire to 'go green', many owners had taken to CNG cars because of the relatively cheaper fuel.

But CNG prices have been rising, from $1.28 per kg in May to $1.59 early this month to the current price of $1.73 per kg.

Taxi drivers, who cover long distances, say they have been badly hit.

Cabby Lim Teong Beng, 37, said he has driven his new CNG taxi for only two weeks, but now wants to go back to a diesel one.

He said he used to make at least $100 when he drove a diesel taxi but is now earning barely $60 even after driving for 18 hours a day, two hours longer than usual.

Like most CNG-capable cars here, his taxi - a Hyundai Azera CNG - is 'bi-fuel', which means it can run on petrol as well.

His taxi's 3.3-litre V6 engine does only 160km on a full tank of CNG. 'I have to rush back to Mandai the moment I run low on CNG. I cannot afford to switch back to petrol. It defeats the purpose of using CNG in the first place,' he said.

Fellow cabby Kamarudin Mizah, 52, said many of his colleagues had given up driving CNG taxis because of the high operating costs and the inconvenience of having to pump at only two locations.

One solution is to increase the fuelling facilities.

SembCorp Gas may expand its CNG operations here under the brand Gplus. A spokesman said that it is exploring this, 'subject to the necessary approvals'.

Smart Energy, meanwhile, won a 5,500 sq m plot of land in Serangoon North on Thursday and will start building a station there, general manager William Chua told The Sunday Times.

He added that Smart will expand the number of pumps in Mandai from eight to 16. This will double its capacity to 200 cars per hour.

But a spot of bad news is ahead. The Jurong Island and Jalan Buroh CNG stations will close for maintenance for two days from tomorrow, leaving Mandai the sole CNG station open during that period.

Meanwhile, the Land Transport Authority (LTA) has responded to recent concerns that the special tax exemption which CNG cars now enjoy may be removed.

This special tax is to recover fuel duty imposed on petrol. Duty is not charged on CNG at the fuelling station.

In the case of CNG bi-fuel cars, an LTA spokesman said: 'The exemption is up till Dec 31 next year and a review will be conducted in due course...The Government has also not ruled out the extension of special tax exemption for such cars.'

fatz2

Dealers not expecting rush of owners to give up cars for cash
By Dominique Loh, Channel NewsAsia | Posted: 01 September 2008 1845 hrs



SINGAPORE: As of Monday afternoon, Singapore's Land Transport Authority (LTA) has received some 960 applications to get cash rebates from their Certificates of Entitlement (COE) and the Preferential Additional Registration Fee (PARF).

But car dealers have said that they are not expecting a rush of owners to give up their cars for cash.

Jackson Lee, managing director of Jia Leong Trading, said: "Some of them might give up because of petrol... inflation... some of them want to be more economical (and) give up the car, but I think (the number is small)."

"For the first kind of people, whose vehicle is fully paid (up), this would serve as an advantage to them because they can exchange their PARF paper for full cash with LTA," said Jerry Ong, Manager of Auto Inn.

"But for people with outstanding loans, it won't make much of a difference because dealers like us, we've got to come up with the money to fully settle their cars for them."

In Singapore, a car's PARF value is the amount credited to motorists who scrap their cars before its 10th year.

A COE is the pre-requisite before anyone can buy a car, awarded through a bidding system.

As of Monday, car owners have the option to exchange their COE and PARF rebates for cash.

The move, announced in March, is aimed at reducing the car population and have Singaporeans turn to public transport.

Dealers have said it is still too early to say what car owners will do, as opinions differ among individuals.

Phoebe Lim, a car owner, said: "I feel very handicapped without a car, (therefore) whether with or without the rebate, I will still drive. Since I got my licence five years back I've never taken public transport, so no (I wouldn't exchange my car for cash)."

"If the public transport is good enough, yes I think I would," said another car owner, Andrew Ong. "I balance the two together, I value the cash rebate, I can have a saving, I can have money in my pocket, so why not?"

But whether more people will give up their cars for cash in the days ahead remains to be seen.

- CNA/yb

fatz2

COEs for cars mostly lower in latest tender
Posted: 03 September 2008 1651 hrs



SINGAPORE: Prices of Certificates of Entitlement (COEs) for cars were mostly lower in the latest bidding exercise.

The COE price for small cars of 1,600cc and below fell S$3,788 to S$9,501, the lowest in one year.

For big cars, the COE price was S$501 cheaper at $13,389.

Meanwhile, the premium for commercial vehicles rose S$900 to $13,889.

For motorcycles, the new COE price is S$1,452 - up S$142 from the previous tender.

For the Open Category, where the COEs are used mainly for cars, the premium rose S$299 to S$14,300.

- CNA/ir

fatzcomel

COE prices fall across the board
Posted: 22 October 2008 1748 hrs

SINGAPORE: COE prices for vehicles fell across the board in the latest bidding exercise.

The Certificate of Entitlement (COE) for big cars (more than 1,600cc) saw the biggest fall. It tumbled S$6,811 to S$7,589, its lowest level since February 2007.

Open Category COEs, which are used mainly for cars, dived S$3,057 to S$12,001.

For small cars of 1,600cc and below, the COE price fell S$2,812 to S$10,989.

Meanwhile, the premium for commercial vehicles dropped S$4,396 to $11,503.

For motorcycles, the new COE price is S$1,609 - down S$280 from the previous tender exercise.

- CNA/ir

fatzcomel

Petrol prices down 5 cents per litre, diesel 6 cents
By Cheryl Frois, Channel NewsAsia | Posted: 18 November 2008 1702 hrs

SINGAPORE: In Singapore, pump prices are down again.

Petrol stations across the island have lowered prices by five Singapore cents per litre for petrol and six cents per litre for diesel.

This comes as global crude oil prices continue their downward slide.

Shell led the way by reducing prices at 11 am, followed by ExxonMobil and Caltex at noon, and SPC at 12.30 pm.

Premium 95 grade now stands at S$1.636 a litre, while the price of diesel is reduced to S$1.373.

Tuesday's decrease in prices marks the 12th consecutive drop since July this year.

- CNA/yt

fatz2

COE crashes to $2
By Christopher Tan


         
At the close of the latest tender on Wedneday, COE premium for cars up to 1,600cc closed at an unprecedented $2. PHOTO: TNP

WHAT is thought to be impossible in an open bidding system has happened: COE has crashed.

At the close of the latest tender on Wedneday, COE premium for cars up to 1,600cc closed at an unprecedented $2.

Motor traders were shocked. All said the market was soft, but no one expected the price to crash.

The number of bids submitted exceeded the COE supply of 1,851 by only one.

The other categories all ended much lower as well.

COE for cars above 1,600cc closed at $4,889 - almost half the previous value. The Open COE, which can be used for any vehicle type, ended at $6,889 - down from $10,490 before.

COE for commercial vehicles finished at $6,189, from $8,889; and motorbike COE dipped to $1,012, from $1,509 previously.

sutera_abadi

anjat gegel....
baca sokkabar pagi tadi 2 doler jekkk...
dalam hati pun berkata...
bior betik....

Originally posted by fatz2 at 19-11-2008 05:19 PM
COE crashes to $2...

fatz

Originally posted by sutera_abadi at 20-11-2008 06:53 AM
anjat gegel....
baca sokkabar pagi tadi 2 doler jekkk...
dalam hati pun berkata...
bior betik....

ha ah la gegel, semer org mcm dah jangka ekonomi makin teruk
tu yg sampai tak cukup org bid utk COE tu...

SweetCandy

mcm tak caya gitulah.ha'ah seyy
these 2 months.. COE prices jatuh banyak.. gd one to buy a car!!

sutera_abadi

ohh...
boboi gelak ehh..  

Originally posted by fatz at 20-11-2008 06:40 PM

ha ah la gegel, semer org mcm dah jangka ekonomi makin teruk
tu yg sampai tak cukup org bid utk COE tu...

fatzcomel

--------------------------
Berita Harian / Ekstra! : 22 November 2008

MASA UNTUK BELI KERETA

Oleh
Jaz Al-Zain

HATI saya tersentak dan nyaris menekan brek kecemasan apabila mendengar melalui radio bahawa sijil Hak Milik Kenderaan (COE) untuk kereta kecil (di bawah 1,600cc) cuma $2 sahaja.

Beberapa orang kenalan kemudian menelefon saya dan menghantar e-mel untuk bertanyakan sama ada sekarang adalah masa yang baik untuk membeli kereta baru.

Saya membalas dengan mengatakan adalah sukar untuk memberi jawapan ia dan tidak sahaja kerana bagi saya, ya lebih banyak bergantung pada keadaan.

Yang pertama ialah COE $2 itu adalah untuk mereka yang telah membuat tempahan yang lalu, jadi jika anda membuat tempahan sekarang, COE untuk dua minggu dari sekarang belum terjamin rendah.

Kalau dilihat pada sejarah masa lalu, apabila COE menjunam, ia akan disusuli dengan kenaikan kerana ramai orang mahu mengambil kesempatan daripada keadaan tersebut.

Bagaimanapun, melalui perbualan saya dengan beberapa kawan daripada pengedar rasmi kereta di sini, mereka (enggan namanya disiarkan atas sebab-sebab tertentu) rata-rata katakan bahawa sekarang memang masa yang baik untuk membeli kereta atau menukar yang baru.

Tetapi mereka memberi amaran agar elakkan membeli daripada pengimport bebas (PI) jika boleh.

Terutama sekali daripada pemain kecil-kecilan. Ini kerana jika kegawatan kewangan meruncing dan kita mengalami kemelesetan, PI yang kecil-kecillah yang akan pertama terjejas dan gulung tikar.

Mereka biasanya mempunyai keuntungan kecil sahaja dan mengharapkan cash roll-over untuk mengekalkan perniagaan.

Jadi jika pembeli kereta semakin berkurang, merekalah yang pertama terjejas. Jadi anda besar kemungkinan akan terjejas juga dari segi jaminan yang diberikan oleh PI yang telah lenyap itu.

Menurut kawan-kawan saya lagi, jika anda mahu juga membeli dari PI, carilah yang besar dan mapan.

Tetapi sebaiknya, belilah daripada pengedar rasmi kerana mereka tidak mudah gulung tikar dan anda tetap terjamin.

Seorang kawan dari pengedar jenama kereta Jepun yang terkenal, juga mengingatkan bahawa beliau meramalkan yen Jepun akan meningkat pada tahun depan.

Ini bererti kenderaan dari negara Matahari Terbit itu dijangka lebih mahal lagi.

Kesimpulannya, jika anda selesa untuk membeli sekarang, merasakan bahawa pekerjaan anda mantap, mungkin juga sekarang adalah masa yang baik untuk 'shopping' kereta.

fatzcomel

Best time to buy a car?

Drawn by lower car prices and certificate of entitlement (COE) rates at record-low levels, potential buyers have been flooding showrooms to check out their dream set of wheels.

The buying frenzy was ignited on Nov 19, when the COE premium for cars with engine size up to 1,600cc crashed to $2, a level never seen before.

Said Ms Helen Neo, head of consumer banking at Maybank Singapore: "With the Category A (below 1,600cc) COE at a record low of $2, new cars are currently priced at attractive levels.

"Furthermore, with the sharp plunge in petrol prices to a 20-month low, it is definitively a good time to consider buying a car."

How does a lower COE contribute to savings for the buyer?

The fall in COE to $2 from $10,455 early this month has led many car dealers to cut car prices by between $3,000 and $6,000 for the smaller-car segment.

For instance, car dealer Borneo Motors has cut prices by up to $6,000, bringing its cheapest model, the Toyota Vios, to below $44,000.

Honda agent Kah Motor has cut the Civic's price by $2,700 to $72,500.

Motor Traders Association (MTA) president Tan Kheng Hwee said that car prices are lower today than at any other time in the last 10 years.

This can translate to lower monthly instalments too.

Ms Neo said that lower car prices mean that any loan taken is likely to be smaller too. Hence, the cost of financing would be correspondingly lower.

She gave this example: Let us say the car price was lowered by $5,000.

Assuming a corresponding reduction in loan amount by $5,000, this would translate into monthly savings of about $70 for a seven-year loan.

Besides the lower cost of financing, Ms Tan said that another reason to own a new car is that today's cars have improved features.

"Dollar for dollar, buyers today are also getting a superior product in terms of features and quality."

For example, a new Honda Civic offers more space, better performance and higher horsepower, plus improved fuel economy compared to the last-generation Civic model, she added.

"And it costs less to buy today. It's a good deal."

Still, you cannot ignore how the world is facing a prolonged financial downturn and the looming threat of more job cuts.

To add to the gloomy outlook, anecdotal evidence points to an emerging trend of bankruptcy arising from defaulting on car loans. Recent statistics also suggest a rising trend of cars being repossessed here because of loan defaults.

So, before you go ahead and book a car, consider these first:

1. Positive cash flow

Given the current economic conditions, Mr Tony Ong, director at IPP Financial Advisers, cautions potential car buyers to ensure that they have a positive cash flow for at least one to two years first.

This means an adequate cash flow to cater for living and household expenses and the servicing of the car loan.

Mr Leong Chin Huah, a senior consultant at wealth management firm Providend, said that as a guide, the total amount of your gross income that goes towards servicing all loans, and not just the car loan, should be capped at below 35 per cent. Avoid having to dip into your emergency funds.

2. Costs of owning a car

Mr Leong said consumers should consider other costs on top of the purchase price of the car.

These include the car loan (if you take up a loan), regular maintenance costs, fuel charges, road tax, insurance premium, Electronic Road Pricing (ERP) charges and parking fees.

He noted that while car taxes were reduced by about 15 per cent recently, there are also more ERP gantries being erected.

3. Needs versus wants

Ask yourself if you really need a car or is it just to pander to your desires. After all, it is a big-ticket item.

Ms Tan of the MTA said you should consider if you and your family are going to need a car for the next five to 10 years.

"If so, then this is a good time to buy when prices are at a historical low," she said.

"Consider also that the COE quota will definitely be cut come April next year, so all other things being equal, car prices should trend up from here."

4. Determining the type and size of car

IPP's Mr Ong suggests using your budget and potential usage of the car to help determine the type and size of car you should get.

5. Buying from an established firm

In these times, it is important to buy from an established company, be it cars or any big-ticket item, said Ms Tan. This is because you want to be sure that your deposit or down payment is safe.

In particular for cars, you want to be sure that the distributor that sold you the car will be around to deliver on promises on repair and warranty services down the road.

6. Should you choose the highest car loan available?

The advice from most financial experts is buyers should fork out a higher down payment if they can afford to, so as to reduce the amount of interest they have to pay.

This means that even if you can get a car loan of up to 100 per cent of the purchase price, do not go for it.

7. Find out the 'effective' loan interest rate

While it might make sense to take up a car loan, experts point out that many buyers are not aware that the "effective" or real interest rate of a car loan works out to be higher than the published loan interest rate.

For example, a loan amount of $40,000 over seven years at a 2.5 per cent interest rate attracts an effective rate of about 4.8 per cent per annum.

This is because interest is payable on the original principal and not on a reducing principal, Mr Leong of Providend pointed out.

8. Check around for suitable loan packages

Loan packages vary, so buyers should take their time to suss out good deals.

The current economic climate has led to slower car sales, so car distributors are hungry for customers.

Market observers noted that current loan packages are about 3.35 per cent for a one- to six-year loan package and 3.5 per cent for a seven- to 10-year loan package.

At some car distributors, cash rebates are being offered when you take up a loan.

For instance, Malayan Motors, which distributes Jaguars and Bentleys, offers a cash rebate of 8 per cent of the loan. This means that for a $100,000 car loan, you will get $8,000 in cash.

At Kah Motor, the cash rebate is based on 30 per cent of the total loan interest. This works out to a $5,000 cash rebate for a $70,000 loan with a seven-year tenure.

However, consumers who wish to enjoy cash rebates should be aware that they have to refund the entire rebate if they wish to redeem their loans fully within the first two years. Loan interest rates for packages tied with cash rebates are also higher.

At Malayan Motors and Kah Motor, the cash rebate package comes with a higher 3.5 per cent per annum interest rate and a longer loan tenure of seven years and above.

On the other hand, those who do not wish to take the offer of a cash rebate can enjoy a lower interest rate of 2.28 per cent per annum at Malayan Motors and 2.2 per cent per annum at Kah Motor.

The latter offers 100 per cent financing, while Malayan Motors offers financing for up to 95 per cent of the cost of the car, subject to the bank's approval.

The bottom line: The choice of a suitable loan package depends on what you are comfortable paying each month.

fatzcomel

9. What if you are an existing car owner - should you sell your car to get a new one?

Ms Tan said you should compare the depreciation of your current car and the terms of your current car loan to those of the new car you are considering.

Check the amount of outstanding loan payable, the resale price of your car and do your sums.

Do note that new cars are also under warranty and maintenance costs tend to be lower.

In addition, Ms Neo suggested checking your existing car's COE and scrap rebate. The latter is also known as the Preferential Additional Registration Fee (Parf) rebate and it is the sum your existing car can fetch when it is de-registered.

"If the existing car has high COE and Parf rebates, which will translate into higher resale value of the car, it may be worthwhile to consider selling it off and switching to a new car," she said.

You can check your rebates at the Land Transport Authority (LTA) website, www.onemotoring.com.sg by clicking on "LTA e-Services", then "online enquiries" and then "Parf/COE rebate" and keying in the required information.

A higher resale value means you have more to channel towards the down payment of the new car. Another factor to consider is the higher running cost of your existing car - due to lower petrol efficiency, higher servicing or maintenance costs and higher parts replacement costs due to wear and tear - compared to that of a new car.

However, it is generally not worthwhile switching to a new car if the existing car is less than a year old. As it is still very new, it would normally be within the warranty period of three years and running and maintenance costs will generally not be high. You won't enjoy much savings by switching.

10. Find out your new car's potential COE rebate

Singapore Vehicle Traders Association president Neo Nam Heng said consumers should be aware that if their new cars came with a $2 COE, the refund on the COE five years down the road will only be half that, or $1.

This applies even if the dealer has sold you a car that comes with an Open Category COE - which can be used for any vehicle type - of about $6,000.

This is because the LTA will base the rebate on the $2 COE, which is the lower of the two premiums.

"It is better to wait for the next COE bidding and bid for the actual Category A, so there will be no confusion leading to any potential disputes with your dealers," he advised.

Don't get caught out

You cannot ignore how the world is facing a prolonged financial downturn and the looming threat of more job cuts. To add to the gloomy outlook, anecdotal evidence points to an emerging trend of bankruptcy arising from defaulting on car loans. Recent statistics also suggest a rising trend of cars being repossessed here because of loan defaults.

fatzcomel

Pump prices fall by another 4 cents per litre
By Cheryl Lim, Channel NewsAsia | Posted: 02 December 2008 1613 hrs

SINGAPORE: Pump prices fell again on Tuesday, the 13th consecutive drop since July this year.

Petrol stations across the island lowered prices by four cents per litre for petrol and diesel.

Premium 95 grade now stands at S$1.596 a litre, while the price of diesel is reduced to S$1.333.

The reductions come as global crude oil prices continue their downward slide.

Shell led the way by lowering prices at noon, followed by SPC and Caltex at 1 pm and ExxonMobil at 1.30 pm.

- CNA/yt

fatzcomel

Singapura        
  
LAGI PEMANDU DIDENDA DAN DIJEL KERANA UBAH PENGUKUR PARAS MINYAK KERETA

SEORANG lagi pemandu warga Singapura didenda $500 dan dijatuhi hukuman penjara dua minggu setelah didapati bersalah mengubah pengukur paras minyak keretanya yang gagal mematuhi peraturan tiga suku minyak dalam tangki.

Andreas dijatuhi hukuman itu Selasa lalu kerana dua kesalahan - mengubah pengukur paras minyak dan memberi maklumat palsu kepada pegawai bertugas.

Dalam kenyataan bersamanya, Penguasa Imigresen dan Pusat Pemeriksaan (ICA) dan Kastam Singapura semalam berkata kes Andreas menjadikannnya pemandu keempat yang didapati bersalah atas kesalahan serupa.

Seramai tujuh pemandu didakwa sejak 2006 atas kesalahan mengubah pengukur paras minyak.

Sejak 2006 juga, 7,370 pemandu didenda kerana tidak mematuhi peraturan tiga suku minyak dalam tangki apabila keluar dari Singapura.

Kenyataan itu juga menambah bahawa Andreas ditahan di Pusat Pemeriksaan Woodlands pada 1 Disember lalu.

Andreas ditanya tiga kali oleh pegawai ICA tentang paras minyaknya dan dia mendakwa bahawa paras minyaknya adalah betul.

Namun, pegawai tersebut menemui alat kawalan jauh yang mengawal paras minyak yang digunakan untuk mengubah pengukur paras minyak dalam tangki minyak keretanya itu.

Pemandu yang didapati tidak mematuhi peraturan tiga suku tangki minyak boleh dikenakan denda sehingga $500.

SweetCandy

very useful tips on buying cars..
the last sentence .. i agree.