Car dealers preparing for coe supply spike!

[Carer]

Car buyers can start planning their purchases next year. Let's just hope the loan rule still applies, just to dampen the demand a little.

 

 

http://m.sgcarmart.com/articles/articleinfo.php?CT=n&AID=11131

 

 

 

With a maximum of about 52,000 cars, which can be deregistered between now and mid-2015, dealers are preparing for a big spike in Certificate of Entitlement (COE) supply within the next year, reported The Business Times.

 

Deregistrations are the main component in determining each new COE quota and over the past four years, the number of cars scrapped has been low. This, and a lower allowable vehicle growth rate and COE clawbacks due to previous oversupply, have put a squeeze on COEs.

 

As a result, the number of private passenger cars registered in 2013 was just 22,008 units, while only 27,000-plus new cars were put on the roads in each of the preceding two years.

 

The director of a volume dealership quipped, "Compared to those lean years, 2015 will have at least 50 percent more car COEs, if not 75 percent more.''

 

The situation looks even rosier beyond that. According to the Land Transport Authority, from mid-2015 to mid-2016, a maximum of 107,000 cars are due for deregistration, or double the preceding period's figure. And this pool remains about the same size for the following 12-month period from mid-2016 to mid-2017.

 

So it is no surprise that many distributors are ramping up operations. The Mitsubishi brand, for example, is returning to Cycle & Carriage's Alexandra Road showroom.

 

Some brands are expanding their model lineup. For Opel and Chevrolet, distributor Alpine Motors is bringing in two new models each. The four cars will be Alpine's first new model launches in two years.

 

But others may be more cautious about over-extending themselves. Over at Borneo Motors Singapore, the authorised Toyota distributor is said to be streamlining its Pre-Delivery Inspection (PDI) operations and securing new facilities to handle the expected rise in sales.

 

But it appears investment in other areas may take place only when the actual boom materialises.

[Wt_know]

huat ah .... coe $20k lai liao

but can sushi and kimchi sell their car

if not then cry papa cry mama again that top selling car is bmw/merc/audi/vw

 

 

The director of a volume dealership quipped, "Compared to those lean years, 2015 will have at least 50 percent more car COEs, if not 75 percent more.''

Edited September 11, 2014 by Wt_know

[Watwheels]

So optimistic? Perhaps for the dealers. Coz even if the COE prices still remain high due to high demand they make more sales dan before.

[Knoobie]

So optimistic? Perhaps for the dealers. Coz even if the COE prices still remain high due to high demand they make more sales dan before.

hehe.. sure optimistic mah.. now rope people in to first..

 

if COE still high, consumer will help them to KPKB!

 

if LTA really want to control car population, I see no reason why there would be significant increase in supply of COE. because doing so would be back to square one.

[Kusje]

huat ah .... coe $20k lai liao

but can sushi and kimchi sell their car

if not then cry papa cry mama again that top selling car is bmw/merc/audi/vw

 

 

 

If COE will really drop to 20k then yes, I think Jap and Korean cars will sell again.

[Carer]

Statiscally, COE supply increase, prices should fall assuming demand remains the same. Now the big assumption is in the demand. Will demand remain the same or decrease or increase?

 

These are the important factors to consider.

 

1. COE supply craw back

2. MAS rule on 50/60% downpayment

3. total residential population in 2015/2016

4. number of people willing to give up driving upon scraping their current car

[FourZero]

 

If COE will really drop to 20k then yes, I think Jap and Korean cars will sell again.

 

If really drop n maintain this way I will sure renew my COE

[Celicar]

Early morning, so everyone dreaming.

[Soya]

Dun be so happy yet hor. I bet LTA oredi planning to clawback these excess supply and keep COE prices high.

 

Afterall, where else to get the $$$ to fund all the social goodies....?

 

 

[Vega]

don't forget those 52K car owners also need a replacement. they just don't vanished in the thin air.

[RadX]

Dun be so happy yet hor. I bet LTA oredi planning to clawback these excess supply and keep COE prices high.

 

Afterall, where else to get the $$$ to fund all the social goodies....?

 

 

Exaxtly.. rem lemon lim incr quota until highway like car park...

 

This best time to claw back n set nos back

 

And dun get me started on opc....olssssss

 

 

Lol

[Jwee85]

Surely IF LTA were to claw back the quota, the exact ratio MUST be informed to the dealer in time.

Because if LTA do not inform the dealers, then the stocks projections for 2015 to 2016 may be missed.

What if Dealers ordered lesser cars? There will not be enough cars for sale, and COE will dropped to $1.

What if the Dealers orders more stocks based on 75% more quotas, there may be a glut in the warehouse if LTA decided to claw back.

 

So whatever it is, I believe these dealers might already know the figures already.

[Watwheels]

hehe.. sure optimistic mah.. now rope people in to first..

 

if COE still high, consumer will help them to KPKB!

 

if LTA really want to control car population, I see no reason why there would be significant increase in supply of COE. because doing so would be back to square one.

 

Previously LTA say use wrong formula in 2005-2008? So now they use the make money formula. Won't go wrong. LoL...

 

Huat ah!

 

 

As long as there are more quota means dealers get to make more money, doesn't matter how high the COE prices go. Those who want to buy cars will buy anyways.

Edited September 11, 2014 by Watwheels

[Voodooman]

Dun be so happy yet hor. I bet LTA oredi planning to clawback these excess supply and keep COE prices high.

 

Afterall, where else to get the $$$ to fund all the social goodies....?

 

 

The social goodies will include cheaper COE to help those who cannot afford a car buy a car as erection year coming? Think many will be disappointed.

[Knoobie]

Statiscally, COE supply increase, prices should fall assuming demand remains the same. Now the big assumption is in the demand. Will demand remain the same or decrease or increase?

 

These are the important factors to consider.

 

1. COE supply craw back

2. MAS rule on 50/60% downpayment

3. total residential population in 2015/2016

4. number of people willing to give up driving upon scraping their current car

hmm.. COE at this rate you still see so many people buy car.. if drop demand no need say.. even those no need to change car also will want to change car..

[Mockngbrd]

Solly,lta don't inform dealers one. The last time they changed the rules alot kenna stuck. Many tried to backdate also cannot.

[Carer]

whatever it is, it is very possible that COE prices will drop. whether big drop or slight drop, we will wait for market to react. many rich people in singapore.

[Soya]

Surely IF LTA were to claw back the quota, the exact ratio MUST be informed to the dealer in time.

Because if LTA do not inform the dealers, then the stocks projections for 2015 to 2016 may be missed.

What if Dealers ordered lesser cars? There will not be enough cars for sale, and COE will dropped to $1.

What if the Dealers orders more stocks based on 75% more quotas, there may be a glut in the warehouse if LTA decided to claw back.

 

So whatever it is, I believe these dealers might already know the figures already.

 

Wahaha......WLL ah. Nowadays LTA famous for flip prata policies until it's actualli starting to make boleh politicians look good......

Exaxtly.. rem lemon lim incr quota until highway like car park...

 

This best time to claw back n set nos back

 

And dun get me started on opc....olssssss

 

 

Lol

 

 

I tink the 50% d/p & 5-yr loan is powderful enuf to keep the wannabes at bay.

 

They juz hv to enforce it strictly and stop flipping pratas. The market will get certainty and find it's own price equilibrium.