Are Car Companies Getting Hungry For Sales?

[EddieTan_144369]

I think its all about business and money making. It's already a given fact that COE quantity is going to be the highest around this period and this trend will not last forever. After next year, COE quantity should gradually reduce unless government change policy again. Very unlikely given the fact that they are pushing for car-lite society.

 

Which AD don't want to ride this bull wave? Doesn't matter if they throw in freebie or bring in the lowest end bare bone model as long as there are money to be make, why not? At the end of the day, AD always make money from new car sales, bundled insurance, loan and trade in etc

[Vinceng]

I think its all about business and money making. It's already a given fact that COE quantity is going to be the highest around this period and this trend will not last forever. After next year, COE quantity should gradually reduce unless government change policy again. Very unlikely given the fact that they are pushing for car-lite society.

 

Which AD don't want to ride this bull wave? Doesn't matter if they throw in freebie or bring in the lowest end bare bone model as long as there are money to be make, why not? At the end of the day, AD always make money from new car sales, bundled insurance, loan and trade in etc

 

I beg to differ.

 

The government makes the most money by selling e-paper a.k.a. COE, for $50K a piece.   

 

 

 

 

 

 

 

 

 

 

 

Edited October 7, 2016 by Vinceng

[merc280v6]

My Friend played hard ball and got a further $3,000 off the Jetta Trendline.

 

To calculate cost of car, take OMV X 2.35 + COE value = cost of car to distributor.

 

Most make at least a 5 figure profit for each Sale. There is margin to knock down price further.

The difference between selling price and cost of car is the gross margin, NOT profit.

Profit must include all other operating costs (Opex) ... advertisements, promotions, salaries & commissions, office & showroom rents, utilities (electricity & water), maintenance, waste disposal, capital inventory, warehousing, import taxes, interest borne by company loans, and many other payables in running a business!

[Imac]

It seems that there are car sales everywhere..

Is it really GSS time for cars, or just gimmicks?

 

I recently had a chat with one rep, and the rep confided, that around this time, the companies, typically the ADs, will need to rouse up sales if they have not met the annual targets.

 

And if you get it now, from reps who have not met their annual targets, there is a bigger hunger, so they will be willing to share their commissions with you, and help you get a better price. 

 

Having been to two sales recently, I can tell you from a first person point of view that the reps are truly keen to close a deal, and if you are really keen, get that cheque book ready, there are deals to be had.

 

 

For example, BMW has their 100 year sale, and one can score a BMW 116d for 123k plus a bunch of freebies.

 

The quantum of freebies that you get will depend on your bargaining skills and which rep is more hungry.

 

So is a senior rep better or a junior one? IMO, the latter. He / she has targets to met, and is more willing to forgo the commission in order to keep his / her job. 

LOL...have you been to car showroom ?

 

Since when they do not have any SALES during weekend ?

 

Just like over at S'pore Expo...every FRI, SAT, SUN there is some kind of "Electronic Show/Sales" going on there...

 

 

[Char]

The difference between selling price and cost of car is the gross margin, NOT profit.

Profit must include all other operating costs (Opex) ... advertisements, promotions, salaries & commissions, office & showroom rents, utilities (electricity & water), maintenance, waste disposal, capital inventory, warehousing, import taxes, interest borne by company loans, and many other payables in running a business!

Refreshments as well .

[alex976]

I do not know for the private vehicle section. But the commercial vehicle section quite jialat.

 

There are companies out there that utilize the early turn over scheme. They trade in their pick-ups and lorry then ended up they do not have enough cash flow. 

 

Two weeks back i got a call from mitsubitshi asking if i am interested to take in a ETS double cab L200. They are willing to give $7500 discount cos that fella no $$ to cough up the vehicle value then abandon the sales. The catch is the vehicle has 1 transfer count but is completely new.

 

Nissan also the same thingy with cabstar.

 

They are willing to drop prices as long as they have inventory to clear.

 

The economy is really bad. The strong commercal COE is due to the ETS which is shrinking the COE pool.

 

Next year, alot must scrap but i am not surprise if there is a sudden big drop cos alot of companies already in the red. Plus major retrenchment are planned after the year end.

[Vinceng]

COE mkt for private vehicles are weak too. current COE is pushed up by the private hire Grab and Uber.

 

Read Oct issue of Torque. Chris Tan says Cat A shd be in $38-40K range now (lowest since 2011) if not for Uber and Grab.

[macrosszero]

Car companies are always hungry for sales - getting more of the market share. And thus so long as demand exceeds supply its just a matter of gaining more sales relative to your competition.

[Imac]

I do not know for the private vehicle section. But the commercial vehicle section quite jialat.

 

There are companies out there that utilize the early turn over scheme. They trade in their pick-ups and lorry then ended up they do not have enough cash flow. 

 

Two weeks back i got a call from mitsubitshi asking if i am interested to take in a ETS double cab L200. They are willing to give $7500 discount cos that fella no $$ to cough up the vehicle value then abandon the sales. The catch is the vehicle has 1 transfer count but is completely new.

 

Nissan also the same thingy with cabstar.

 

They are willing to drop prices as long as they have inventory to clear.

 

The economy is really bad. The strong commercal COE is due to the ETS which is shrinking the COE pool.

 

Next year, alot must scrap but i am not surprise if there is a sudden big drop cos alot of companies already in the red. Plus major retrenchment are planned after the year end.

Alex Bro,  No worry...I am sure that Uber would seen this coming...expect to see this soon for commercial vehicle..

 

Edited October 9, 2016 by Imac

[therock]

COE mkt for private vehicles are weak too. current COE is pushed up by the private hire Grab and Uber.

 

Read Oct issue of Torque. Chris Tan says Cat A shd be in $38-40K range now (lowest since 2011) if not for Uber and Grab.

Wow... 38k.. the economy is really not doing too well then.. 

[13177]

COE mkt for private vehicles are weak too. current COE is pushed up by the private hire Grab and Uber.

 

Read Oct issue of Torque. Chris Tan says Cat A shd be in $38-40K range now (lowest since 2011) if not for Uber and Grab.

That chris tan confirmed knows what he is talking or not? Uber/grab really can push up the coe so much ah? From 40k to 51k?

[Victor68]

That chris tan confirmed knows what he is talking or not? Uber/grab really can push up the coe so much ah? From 40k to 51k?

 

Many of these uber/grab related companies are just jumping in to cash in on this hot market like during the Dot Com. They don't care about COE or if there would be 'takers' for their cars. They are only interested in volume to push up the numbers. End of the day, who are the one paying for the $100K plus 'private taxi'? Seriously you think you can earn a decent living out of this alone?

 

When economy is good, taxi or private taxi can make a living. In bad time, people can choose cheaper transportation but what happen to these cars? It would be interesting to know how many are being returned weekly. Do they really need to buy more?

[merc280v6]

For many car-aspiring Singaporeans, it is only about getting a manageable long-term lease car that won't require the up-front 30% d/p.

It's not about its commercial-convertibility ... they may never need/want to use it as a PH taxi.

It's not about not-owning the car, as they would have chalked up high interest over maximum loan tenure anyway, if they were to buy a car.

 

But it is about being able to drive a brand new car from Day-1 and the lease cost from $1,600/month is deemed manageable. Cos their alternative option of buying a new car will need to incur all other Opex from road tax, to maintence and repairs.

 

With this now, they just pump petrol and drive. All else, is not their problem. I think it's a very workable solution for many car-aspirants in SG. Just take a look at the number of PH cars that have populated our roads.

 

New graduates, young professionals and new 'entrants' are especially keen on this concept. Corporates are also shifting away from the 'traditional' car rental companies for their expat staff with perks, who are usually here for a 3-5 year term.

 

I think the demand is going to remain strong.

The "imagined" marginal cases that see this option as part-time livelihood and returning the PH car back due to boh seng lee is likely to be insignificant.

 

Another PHC sprouting up:

http://www.mycarforum.com/topic/2702904-driveme-car-leasing-your-car-leasing-solution/

Edited October 9, 2016 by merc280v6

[BenTong]

COE mkt for private vehicles are weak too. current COE is pushed up by the private hire Grab and Uber.

 

Read Oct issue of Torque. Chris Tan says Cat A shd be in $38-40K range now (lowest since 2011) if not for Uber and Grab.

Analysts.. always on hind sight..

That chris tan confirmed knows what he is talking or not? Uber/grab really can push up the coe so much ah? From 40k to 51k?

All these Analysts would have been Super rich..

[Heman75]

The difference between selling price and cost of car is the gross margin, NOT profit.

Profit must include all other operating costs (Opex) ... advertisements, promotions, salaries & commissions, office & showroom rents, utilities (electricity & water), maintenance, waste disposal, capital inventory, warehousing, import taxes, interest borne by company loans, and many other payables in running a business!

agree.. some ppl just dont understand and keep complaining AD making alot of money.. if you really breakdown, they are not making as much as you think they are. normal e class 5ser a6, all these need a margin of at least 40k. 

[Freeder]

agree.. some ppl just dont understand and keep complaining AD making alot of money.. if you really breakdown, they are not making as much as you think they are. normal e class 5ser a6, all these need a margin of at least 40k.

Y motor image , tan chong , Infiniti or Volvo margins not so ridiculous as PML ?

Some More give vomit blood after sales svc

[13177]

Many of these uber/grab related companies are just jumping in to cash in on this hot market like during the Dot Com. They don't care about COE or if there would be 'takers' for their cars. They are only interested in volume to push up the numbers. End of the day, who are the one paying for the $100K plus 'private taxi'? Seriously you think you can earn a decent living out of this alone?

 

When economy is good, taxi or private taxi can make a living. In bad time, people can choose cheaper transportation but what happen to these cars? It would be interesting to know how many are being returned weekly. Do they really need to buy more?

Dont understand why uber/grab keep buying so many new cars? Do they really needs so many cars? If they need to replace their old cars, but thought there should be a stop on buying cars, right? Cant be they will bid for every coe for forever lo?!

Edited October 10, 2016 by 13177

[Heman75]

Y motor image , tan chong , Infiniti or Volvo margins not so ridiculous as PML ?

Some More give vomit blood after sales svc