SECOND-HAND CAR MARKET : A COMPARATIVE ANALYSIS OF FACTORS AFFECTING PRICES IN 1998 AND 1999

Abstract

This study recognizes the importance of the second hand car market in Singapore. This market differs from that in other countries in that there is a Vehicle Quota System (VQS) in Singapore, in which the system of bidding for Certificate of Entitlement (COE) influences decisions of car ownership. This COE constitutes a large percentage of new car prices and indirectly affects the second hand car prices. In this project, COE is treated as one of the attributes in determining the prices of second hand cars. The hedonic approach is used to analyze the prices of second hand cars for the years 1998 and 1999. The objectives are two-fold. First to ascertain the impact of VQS on second hand cars and secondly, the magnitude, significance and stability of parameters over the period under study.