Thegodzilla 1st Gear February 16, 2014 Share February 16, 2014 (edited) Hi! Just want to understand how do this deals come about? Please refer to http://www.onemotoring.com.sg/publish/onemotoring/en/lta_information_guidelines/buy_a_new_vehicle/car_cost.html Close to bottom of link refer to "Car Prices Click the following link for detailed breakdown of car costs: (based on new cars registered in Jan 2014)" No. 33 BMW M5 No. 177 Lexus GS250 Both at "below cost". Are the dealers actually not making money of this couple of sales? Edited February 16, 2014 by Thegodzilla ↡ Advertisement Link to post Share on other sites More sharing options...
Tiger1 6th Gear February 16, 2014 Share February 16, 2014 If car dealers can believe, pigs can climb tree. You believe? Link to post Share on other sites More sharing options...
Wt_know Supersonic February 16, 2014 Share February 16, 2014 sun rise from west and set in east do you believe? Link to post Share on other sites More sharing options...
GLZT 6th Gear February 17, 2014 Share February 17, 2014 I'm sure some dealers made no profit or even loss for certain transactions due to miscalculation of coe and aggressive strategies. Just like the K3 launch case. Some of the bros here got the car for 94k with 70k+ coe. But I'm sure premiums car dealers probably wouldn't make such loss due to their high profit margin. Unless maybe its a clearance sale of some sort, I noticed the 370z has got a 50k discount from tan Chong, and now it's removed from the car list in tan chong, the sales probably not doing good, so they may not want to bring in after the clearance sale. Anyone can confirm this? Link to post Share on other sites More sharing options...
Ichibawa 5th Gear February 17, 2014 Share February 17, 2014 Nobody will have the sanity to set up a business to lose money. Link to post Share on other sites More sharing options...
Vhtfhwlego Supercharged February 17, 2014 Share February 17, 2014 If everyone thinks like you, there wouldn't be Bugatti Veyron. Known fact, it loses $6m per car sold. Nobody will have the sanity to set up a business to lose money. https://www.google.com/search?q=cars+made+to+lose+money#q=cars+made+to+lose+money&safe=active&start=0 http://www.businessinsider.com/bugatti-may-lose-6-million-per-veyron-2013-10?IR=T Link to post Share on other sites More sharing options...
OmOm 5th Gear February 17, 2014 Share February 17, 2014 Yes, it is possible. I had bought a brand new car from an AD locally and they had incurred about $20k of loss from the sale to me due to a combination of factors: miscalculation of OMV/PARF and COE projection going wrong for them. Hi! Just want to understand how do this deals come about? Please refer to http://www.onemotoring.com.sg/publish/onemotoring/en/lta_information_guidelines/buy_a_new_vehicle/car_cost.html Close to bottom of link refer to "Car Prices Click the following link for detailed breakdown of car costs: (based on new cars registered in Jan 2014)" No. 33 BMW M5 No. 177 Lexus GS250 Both at "below cost". Are the dealers actually not making money of this couple of sales? Link to post Share on other sites More sharing options...
Meanmachine 6th Gear February 17, 2014 Share February 17, 2014 Nobody would believe that dealer sell cars at cost, but i did on 2 occasions. Donkey years ago, sold Passat at $XX, two half months later saw the same car at c/p, went forward ask the owner how much he bought, same $XX. Sold my IS250 @$XY, dealer showed me the cost upon my take in price,coz thy made fork my trade-in, hence, my IS was 1st owner, well taken care car. Link to post Share on other sites More sharing options...
Meanmachine 6th Gear February 17, 2014 Share February 17, 2014 If car dealers can believe, pigs can climb tree. You believe? I have to agree with you, but somehow not all dealer have the same mentality, I do come across some dealer who are genuine and honest though. Pig may not climb tree, but they do taste a lot better- Char Siew , pork knuckle & Bah Kut Teh. Link to post Share on other sites More sharing options...
Myxilplix Turbocharged February 17, 2014 Share February 17, 2014 With the amount of volume they push, there might be an occasional miscalculation especially in our crazy retard car market. For the M5, maybe they take the hit or take small margins just to push some halo cars out on to the road. There's always the benefit on the marketing side which you sometimes can't put a price to. Link to post Share on other sites More sharing options...
Ichibawa 5th Gear February 17, 2014 Share February 17, 2014 Based on all their initial pricing strategy, its all to make money. Given that Bugatti sells enough units per year, won't they make money? If everyone thinks like you, there wouldn't be Bugatti Veyron. Known fact, it loses $6m per car sold. https://www.google.com/search?q=cars+made+to+lose+money#q=cars+made+to+lose+money&safe=active&start=0 http://www.businessinsider.com/bugatti-may-lose-6-million-per-veyron-2013-10?IR=T Link to post Share on other sites More sharing options...
Astrid 4th Gear February 17, 2014 Share February 17, 2014 (edited) ADs sometimes drop price for models they plan to stop bringing in ... not necessarily discontinued ones, but for example, when COEs were rising quickly in 2010/11, many dealers stopped bringing in the smaller cars. Got my Korean 1.4L back then for $43K only, on a $35K COE And with deal sweeteners like leather steering wheel, leather gear stick knob and leather gear stick base cover. Can say they sold it at a loss, at guaranteed COE. COE jumped up after signing S&P agreement - but C&C still honored the contract. Edited February 17, 2014 by Astrid Link to post Share on other sites More sharing options...
Vhtfhwlego Supercharged February 17, 2014 Share February 17, 2014 Based on all their initial pricing strategy, its all to make money. Given that Bugatti sells enough units per year, won't they make money? It is? I'm not too sure. But I'm sure that they dont have a projection to make $ even when there is demand for it. a main chuck of loses are for R&D development, branding & marketing. Link to post Share on other sites More sharing options...
Ichibawa 5th Gear February 17, 2014 Share February 17, 2014 Its stated in the article. Anyway.. similar to the Veyron, LFA from Lexus is also sold below cost if you factor in all other expenses. Then again, these cars serve other purpose other than to generate income. The publicity they bring in is priceless. It is? I'm not too sure. But I'm sure that they dont have a projection to make $ even when there is demand for it. a main chuck of loses are for R&D development, branding & marketing. Link to post Share on other sites More sharing options...
Ashflames 1st Gear February 17, 2014 Share February 17, 2014 If everyone thinks like you, there wouldn't be Bugatti Veyron. Known fact, it loses $6m per car sold. https://www.google.com/search?q=cars+made+to+lose+money#q=cars+made+to+lose+money&safe=active&start=0 http://www.businessinsider.com/bugatti-may-lose-6-million-per-veyron-2013-10?IR=T The "cost" of the veyron is base on estimate that they "could have earn" if using the normal formula for a production car. Just like our HDB "making losses" every year. Link to post Share on other sites More sharing options...
Roberttan 5th Gear February 18, 2014 Share February 18, 2014 honestly speaking , our NEW car cost can be calculated from the OMV / PARF or ARF / GST / duties / COE It is true some new cars are sold at LOST may be due the COE (in hand) is Expire soon or some other commercial factors Link to post Share on other sites More sharing options...
masonreynolds Neutral Newbie July 3, 2018 Share July 3, 2018 No, if the dealer sells the car at a low price, then he will not get the service charge. So it's impossible that dealers can't sell cars below cost. Link to post Share on other sites More sharing options...
cshelly Neutral Newbie July 6, 2018 Share July 6, 2018 One of my (at dealership) told me that sometimes they have to let car go on low price, for example if new year model is on the way and their lot of full with previous/current year model. Also, big dealers can get incentives also from manufacturer if their sales are good, so overall they will be in gain, no matter how :-) ↡ Advertisement 1 Link to post Share on other sites More sharing options...
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