Budget 2013: Industry Snapshot

As the average age of road going vehicles increases and certain car distributors struggle to cope with the servicing maintenance needs of customers in the light of record sales numbers, 3rd party workshops are seeing a marked increase in business. Now more then ever do drivers need to be selective in choosing workshops for their car maintenance needs. Forums and word of mouth appear to be fairly reasonable means of determining a workshop’s credibility, but ultimately, the onus is on car owners to do some basic research on the servicing requirements of their cars and not to rely solely on the recommendations of the service providers

The government is playing catch-up and trying to ramp up public transport capacity to cope with the recent spike in population. It will take a few years for new buses, train lines and major road projects to come online, but we can expect public transport to become much more attractive in future. Taxi companies have had new service standards imposed on them and are actively using apps and booking systems to optimize resources. As regional centers become established across Singapore, the number of journeys and total distance travelled by commuters could decrease, prompting a reduction in congestion and a re-analysis of car ownership policies.

The uncertainty of COE prices, the effect of the latest policies on insurance rates and financing interest rates, the recent implementation of the Carbon Emissions Based Vehicle Scheme and its associated rebates and the unsettled climate in the used car market will cause some volatility in the markets. While some motoring decisions are intensely passionate ones, the financial underpinnings of any purchase in the near-term shouldn’t be. Caveat emptor, and be prepared for some bumps along the way to market stability.

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