Monday, January 29, 2007

Malay Gals, 19, Own Peugeot Cars Woh!

Jan 28, 2007
Cheaper prices, so young snapping up cars
By Nur Dianah Suhaimi

OWNING a car used to mean careful budgeting and years of saving.

But vastly cheaper prices, fuelled by a bumper crop of certificates of entitlement (COEs), have put car ownership within reach of many young adults, a noticeable number of whom are barely a few months into their first job.

More parents, too, are buying cars for their adult children, some of them settling the bulk of the payment in cash.

Teacher Mazri Misawar, 26, bought his own set of wheels just six months after he started work. He paid $49,000, including COE, for his silver Toyota Vios last January.

Said Mr Mazri: 'I've been wanting to buy a car for a long time. Since cars are so cheap now and the economy is good, I decided to go ahead.'

The Land Transport Authority's decision to release more COEs has helped lower prices. Last September, LTA added 8,520 COEs, which will be released over six months.

In the latest COE tender this month, the COE price for the small car category was $11,881. Back in 1994, the price briefly hit $100,000.

Undergraduate Marc Lim's blue Toyota Altis was paid for by his retiree father, mostly in cash.

Said Mr Lim, 21: 'The car cost about $70,000. Since the bulk is already paid for in cash, my father took a one-year loan.'

Last year, Ngee Ann Polytechnic student Siti Nur Puteri, 19, received a brand-new Peugeot 307 from her businessman father before she even got her licence. Her car cost about $90,000.

This year, her father bought a $70,000 Peugeot 1007, this time for her cousin, Miss Mas Indah Puteri, 19, also from Ngee Ann Polytechnic.

Said Miss Siti: 'We chose the Peugeot because we liked the design. I need a car to get to school.'

Figures by the LTA show a total of 116,849 new passenger cars were registered last year, beating the previous year's record of 109,376.

Many of these new cars are owned by young people, said car agents.

The 10 car agents The Sunday Times spoke to said more young people in their early 20s are buying cars.

Seven said they have seen a 10 to 20 per cent growth in sales compared with five years ago, when COE prices were still relatively high.

Said sales executive Andy Sophian from AutoHub Asia: 'Five years ago, it was rare to see youngsters in their early 20s buying their own cars. But now that cars are cheaper, even those who can't afford want their own car.'

Almost half of those driving the China-made Chery QQ cars here are in their early 20s, said Vertex Automobile, the sole distributor of Chery cars in Singapore.

The 812cc QQ retails for about $31,500 (with COE) and is now the least expensive car available here.

Said Vertex's spokesman: 'The cost of driving a Chery is just slightly higher than the cost of travelling by public transport. It's also cheaper than travelling by taxi, which can cost up to $900 a month.'

Said 27-year-old assistant brand manager Mr Bernard Quek: 'The roads are more congested now, and not only during the peak hours.'

Image Caption: ALTHOUGH THEY ARE JUST 19, Miss Siti Nur Puteri (right) and her cousin Mas are already proud owners of Peugeot cars. Miss Siti's businessman father bought both cars for them. -- WANG HUI FEN

No comments: