Posted 06 August 2008 - 04:12 PM
hi, wonder is there any linkage between OMV and ARF??
Recently, the reduction of ARF from 110% to 100%, does it also affect the OMV of a car?
Posted 06 August 2008 - 04:14 PM
OMV is like the price of a bread.
ARF is the additional tax the gov wants to take from you for buying that piece of bread.
Two totall different thing.
+ I am handsome hor! +
Posted 06 August 2008 - 04:15 PM
Posted 06 August 2008 - 04:18 PM
hmm, i checked with KIA,
the agent say initially the OMV is 16k, but because of the reduction in 10% of the ARF,
the OMV dropped to 14k..
wonder if she's bluffing me or its a fact.
Posted 06 August 2008 - 04:21 PM
all explained here: www.onemotoring.com.sg
Posted 06 August 2008 - 04:23 PM
dun think so..OMV is the basic cost of the goods which the dealer need to incur in getting it to Singapore..ARF is the additional taxes imposed by the SG govt..OMV will only change unless the principal lowers selling price to the dealer at some stage..for e.g, the model is coming near to end of its lifecycle and with new replacement model coming out soon, the principal may charge a lower sum to the dealer whereby enabling them to bring it into Singapore at lower OMV..in some situations, the dealer may want to lower the OMV (hence lower the selling price and making it more attractive for customers to buy) by ordering the goods from principal with certain accessories removed..for e.g. Komoco known to import hyundai cars minus airbags into SG to lower the OMV and hence selling price..
Edited by Damienic, 06 August 2008 - 04:26 PM.
Posted 06 August 2008 - 04:42 PM
do u mean that dealer can anyhow adjust the OMV? I think it is possible that dealer can purposely lower the OMV due to reduction in ARF. Becos this will increase its profit margin. For example,
Original OMV 16k
ARF (110%) of OMV = 17.6k
Custom duty 20% of OMV = 3.2k
COE = 15k
Admin cost, IU, road tax, 3 yr maintenance and labour cost = abt 3k
Car selling price 60k
Profit margin is 60k - 54.8 = 5.2k
With reduction in ARF to 100% of OMV and lower the OMV by 10%, profit margin increase by 5.2k + 1.6k + 1.6k = 8.4k
I hope u understand what i mean.
Posted 06 August 2008 - 04:53 PM
The dealer do not have control over the ARF. The ARF is determined by LTA to be at a fixed %. The amount to pay for ARF is proportional to the OMV. The dealer do not anyhow adjust the OMV. They can indirectly do it by reaching an agreement with the principal (manufacturer) to produce cars for tat particular market with exclusion of certain features..for that, the principal will charge the dealer a lower price (which led
to lower OMV) thereby enabling lower amount to be paid for the ARF although the % of the ARF stays the same. With the cost being brought down (lower OMV which led
to lower amt of ARF paid), then the dealer can lower their asking price, hence maintaining profit level and price competitveness..at times, the principal may also drop their asking price to the dealer due to certain reasons, hence enabling the dealer to bring it in with a lower OMV..
Edited by Damienic, 06 August 2008 - 04:56 PM.
Posted 06 August 2008 - 05:26 PM
OMV = Open market Value. It is the total cost of a car at the time of import that an importer declared to the SG Customs. The importer of the car is required to have the value of the car assessed by Singapore Customs for the purpose of levying Customs duty and GST. For example if the OMV of the car is S$10000, the importer is required to pay 20% Customs duty = S$2000 plus 7% GST of (S$10000 + S$2000) = $840 to SG Customs b4 he can bring the car out from the port. Thus the total amt of tax paid to SG Customs at the time of import is S$2,840 for a car with the OMV of $10000. The ARF is collected by LTA at the time of registration at 100% of OMV = S$10000. In short, b4 the car is put on the road, the governemnt has already collected a total of $12,840.00, not foreting that there are other taxes and fee at the time of registration of the car.
When I shut my mouth and turn and walk away, it doesn’t mean you’ve won. It simply means that you are not worth any more of my time.
Posted 06 August 2008 - 05:27 PM
U book a kia carens cuv?
Cat E coe $15K?
Posted 06 August 2008 - 05:40 PM
OMV is not affected by ARF. ARF is affected by OMV.
picture this, the relationship between water and plants (ie much like OMV is input for ARF).
whether the plant grows, it is affected by the water. but how the water behaves is not affected by the plant
Posted 07 August 2008 - 09:02 AM
So i now can confirm 2 things;
1. New car's OMV may not be the OMV when the car is firstly imported to singapore.
2. Car dealer can adjust the OMV of the car just before selling it to buyer to make more profit.
I feel that this is cheating....
Posted 07 August 2008 - 09:10 AM
Who decides the OMV of a new car, may I ask? Is it the dealer or Customs?
Reason I am asking is because the OMV of my car is substantially lower than the listed price in Japan (it's a parallel import).