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Wednesday, June 6, 2012

Make a Profit from Driving?


Motoring in Singapore got featured on Bloomberg yesterday with the article "Singapore Family Sedan Matches Cost of a U S Home".  Here is an extract:


Confident Buyers

Job security has made people more willing to buy cars, helping drive prices higher, said Song Seng Wun, an economist at CIMB Research Pte in Singapore.

“There’s a certain degree of speculation,” Song said. “Due to the COE, you can make money by buying a car and selling it one year later. In most other countries, we’d say a car is a depreciating asset.”

Song said he takes trains and buses, and “whoever wants to drive and pay through the nose, go ahead.”
I find Song's comments amusing and clearly contradictory - he claimed that you can make money from buying and selling of cars and then he dismissed those driving next.

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