Additional Transfer Fee Waiver Sees Increase in Used Car Sales

Last Saturday saw a significant spike in the amount of traffic seen at used-car centres. This was due to the removal of the Additional Transfer Fee incurred on all used-car purchases. Last Saturday saw a significant spike in the amount of traffic seen at used-car centres. This was due to the removal of the Additional Transfer Fee incurred on all used-car purchases. The fee, which amounts to 2% of the used vehicle’s market value, was introduced some 44 years ago and has been a staple of sorts till now.

This news offers comfort for those looking to purchase used vehicles as well as businesses focused on used-car trading.

This seemingly insignificant fee can add up to a sizable amount of $15,000 and up in the case of more premium marques. As such, the theory behind it is that the bigger the purchase, the bigger the savings.

Several used-car centres even reported that sales over the weekend had an increase of more than 30% compared to that of previous weeks’.

The rising prices of COEs have also played a very large role in the increase of used-car sales in recent years.

However, some dealers reckon that this might just be novelty factor and that the buzz might eventually die out once the market gets used to it.

Still the removal of this 2% couldn’t come at a better time for the used-car market. In 2011 alone, a record number of over 126,000 used vehicles changed hands since the millennium.

Watchdogs expect the second-hand car market to continue to grow over the next couple of years.

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