Agent profit

[Zze121]

Anyone had really calculate the total cost of a car. Customs Duty, GST and ARF of a car.

The point is, if you take the price on year 99/00 and now and you find that the profit made by agent is a big difference. Other then COE being the main factor, profit is one of the main component. I remember Straitstimes did put up all the cost in year 2000 and some had comment on the $50k profit being too much. Now a 1.6 Jap car only profit of $5-10k compare to $20-40K 5 years ago. Good example is Mazda car price this year.

[Schneider79]

What's the rationale behind in calculating the agent's profit margin?

[Ahbengdriver]

r u sure a car profit only $5k?

[Pioneer]

Hmmm. I guess it ranges from car models to models. I think definitely some brands earn more than tat.

[Falc]

Ya, for the bread and butter models like Altis. And $5k is gross margin, out of this GM, the company still needs to pay for half year road tax, IU unit, freebies and sales com plus advertising (spread out). So net profit even much lower.

[Falc]

Actually good question.

 

I think there's a correlation between agent's margin and the car's holding value. If the margin is huge, the agent may reduce it later on to maintain volume especially when the model is getting old. So the new car price drops and naturally your resale value also drops. Example is Subaru. MI's margin is huge and subbie's resale value, historically has been dismal.

[Blackyv]

well, if a car is priced too high (agent huge profit), means the car actually dereciate faster and more when you want to scrap it

 

example:

car A worth $40K (paper) and agent profit $40K (mark-up), so sell at $80K..

 

car B worth $40K (paper) and agent profit $20K (mark-up), so sell at $60K..

 

you do the maths on when scrapping these cars, who rugi the more.....

[Gl240]

Chk the sum here:

 

http://www.onemotoring.com.sg/publish/onem...Cost_200610.pdf

[Palmer]

I think they earn more by selling more cars as per car's profit is low.

[Falc]

Ya i'm sure. Some go for volume, some no volume go for high margin per car lor.

[Darren_tyl]

From wat I know from my friend, it's not difficult to calculate also!!

 

Based on the OMV * 2.3 (Which include all the necessary taxes, IU, etc) and + the COE.

 

The difference will be the profit that the company is earning!!

 

Just a rough gauge.

 

Just sharing wat I heard. Might not be true also!!

[Liquidh]

Actually good question.

 

I think there's a correlation between agent's margin and the car's holding value. If the margin is huge, the agent may reduce it later on to maintain volume especially when the model is getting old. So the new car price drops and naturally your resale value also drops. Example is Subaru. MI's margin is huge and subbie's resale value, historically has been dismal.

 

What do you mean by "holding value" the resale value??? so the higher the PM the lower the resale value? negative correlation?

[Djcoolmax]

the other way is, to get the OMV of the car, then apply the relevant taxes and COE and you would get the price of the car. Typically, for Conti cars, the margins are higher as compared to Jap cars. The price above however does not include in other charges e.g. shipping, etc... etc. I guess about 5-10k above the base car price is pretty much there.

[Endless_summer]

[Schneider79]

Ya i know. But still I don't see the rationale in doing the calculation for the profit margin. Some cars might be losing money as we speak because of COE and currency exchange factor. The making money department of the agent is the servicing department.

[Blackyv]

ohhhh... that part is for buyer to judge lor.... it's for buyer to consider buying car A or car B... of cause not all buyer will take this into consideration but some really does... just like current Avante... their asking price is a premium...

[Zze121]

Many ppl buy car din really find out all the cost involve, but when come to resale the agent will only calculate the parf/OMV + the COE rebate. Left you wondering how come my car only worth this much, if a OMV of $15k with $15k of COE the car cost is only $50k excl profit. Since LTA started the break down cost, the price of car drop every year.

They start to realise the profit do stand a large amount. It may not be the factor to decide when buying car but when come to selling car it is a losses on the owner part.

If you say $5k is less ,I can tell you some car are lesser than that.

[Zze121]

Shipping ,insurance and transport cost is included in your OMV.