Agent profit

[Upandcoming]

did u miss out ur insurance and loan amt interests?

 

these all have a share to your SE/agent too.

[Zze121]

I look at HongKong pricing on car and the different on Jap and conti car it very little.

But here you are paying what?10-20k diff for a conti, which I feel is not worth the money.

Edited December 11, 2006 by Zze121

[Upandcoming]

so overall ur pt in the thread is?

[Zze121]

Reduce cost/risk, let ppl know profit affect your car resale value and you can cut down the losses.

 

Eg. Mazda 6 on June06 selling $77988, at one point drop to $69988 with not much change in COE. So why pay the extra money if you know their profit is high and it can drop further. Whereas an Altis have only +/-$5k to play with and chances the price to drop is lesser.

Edited December 11, 2006 by Zze121

[Gl240]

If you know roughly your actual car cost, maybe you can bargain with SE before signing on the dotted line.......

[Upandcoming]

the things u can ask for r roughly thereabts; of cos if u are a seasoned hand or have info or frens u can get more;

 

but realli i.e. u work out profit 5k...u wan reduce to how much? till he earn 1k onli? and u get 4 k worth? maybe overstated but yah...theres a limit; theres also a feasibility in this.

 

moreover, they do earn frm ur insurance etc oso ..just IMHO...but v impt do market research and find out what r given and well try to compare see who gif the better and use it to ur advantage! -) cheers

[Zze121]

They will say : "I will check with my manager"

 

Later they say:" We can only give $1k discount"

 

I remember telling one Mazda saleman, you know wat he said?

[Zze121]

I say :"yr Mz6 profited about 18k, how much you can drop yr price."

Saleman: "Mz boss damn rich, he can affort to sell with this profit."

In my heart I know he is telling me: Wanna buy buy, if not fcuk off!

To me, I expect a more pro answer than this,eg better after sale service.- But I heard their serivcing sux.

That was in June 06, in Aug/Sept 06 they drop it to $70k(profit about $10k)

[Nine_eleven]

i was considering the Vios and Altis in 2004.

 

i decided to get the Altis based on the lower profit.

 

i was initially undecided between these 2 cars, but since the Altis earned them less, it meant that i was paying more for what was needed to put the car on the road than lining the company's bottomline.

 

it also translated into a better value proposition...

 

the mazda example is a very good one...

[Zze121]

Bro same leh, at one point I was about to get a WISH, but after hearing it's a hot target in JB I drop that "WISH"

[Schneider79]

Seriously speaking, they don't bother about it. How much they want to make is their problem. If the consumer thinks the price is right, it will sell. Agent's car sell because there are no competitors at all. Singapore is not like Malaysia or Thailand where there are many Toyota agent and competes price like the PI locally. Most of the agent's car sells on its own because the company is there for so many years.

 

MZ has always been like that. Look at the Mazda 5, Mazda 6, Mazda 3. If you were to buy a mazda, get it 3-4 years later. They only change the shape of the car every 6-7 years. Why be the first to get it and got cut-throat?

[Nine_eleven]

true that most singaporeans dun bother about agent's profits...

 

but then again, most singaporean buyers are not discerning enough too, that's why agents can sell at cut throat prices and still have good sales...

[Joneses]

Lexus better la..

 

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

 

their SC430, OMV $62,903, Cost of landing on Singapore + tax $161,092, Selling price? $259,888 (w/coe)

 

So every SC430 BM sell, BM earn > $80k, and Toyota earn

[Maxxtotal]

I say :"yr Mz6 profited about 18k, how much you can drop yr price."

Saleman: "Mz boss damn rich, he can affort to sell with this profit."

In my heart I know he is telling me: Wanna buy buy, if not fcuk off!

To me, I expect a more pro answer than this,eg better after sale service.- But I heard their serivcing sux.

That was in June 06, in Aug/Sept 06 they drop it to $70k(profit about $10k)

 

The $70k advertised is after the bank rebates with sky high interest rates.

If you go for 2.85%, it shld be abt arn 75k...

 

and one of the worst value car to buy is the 2.3l Mazda 6. With OMV arn 23-24k,

they are selling arn 95k!!! that is the roughly the OMV of

JDM Honda Accord, Mit Galant, Airtrek, old 2.0 Camry... and they were selling 10-20k cheaper. this kind of profiteering is really and those who bite it are really....

 

so good luck to those trying to sell, it is so cheap in the resale market now.

 

so best buy for 2.3l will be resale.

[Djcoolmax]

You also have to factor in the holding fees in the port areas.

[Porker]

PDF file from MTA is not accurate because the OMV does not accurately reflect the actual purchase price of the car. The OMV is more often than not a % of the actual purchase price. Why? Because of the 110% tax that PAP imposes. How about the 20% customs duties and the 5% (soon to be 7%) GST? All adds up if you declare a higher OMV.

 

Hence, agents and PIs alike will always try and bring in the lowest spec'ed' models and add on the options locally because these options will not be subjected to the ridiculous taxes.

 

Soooo... my point is... don't take it so hard on the dealers (be it sole or PI). They have a business to run and its all about the bottomline afterall.

 

However, I do agree that profit of $50k or more per car is ridiculous (this applies to the higher end models and more expensive/prestigious brands).

 

Someone here once questioned me that the price is alot different from the cost calculated from the OMV taken from Onemotoring. I'd just like to say that that dude is seriously misinformed and is smoking crack

[Kokanadan]

Hi folks,

 

I've actually mocked up a Excel template to calculate the base cost and the gross margin of a few cars.

 

List Price are usually before any sort of rebate.

 

Toyota Altis 1.6A

List price: $54988

Base cost: $48920

Margin: 12%

 

Toyota Wish 1.8

List price: $73000

Base cost: $58937

Margin: 24%

 

Honda Civic 1.6A

List price: $71000

Base cost: $56585

Margin: 25%

 

Nissan Latio Premium 1.6A

List Price: $57800

Base cost: $48920

Margin: 14%

 

Mitsubishi Lancer 1.6A (non-sports

List Price: $48988

Base cost: $40879

Margin: 20%

 

Based on the above, I think Altis is really a good catch, followed by Latio.

I do agree that certain margins have to be kept, but with volume like Toyota, we should expect a low margin in sub-10s.

[Schneider79]

I disagree.

 

The agent has the right to make money as to sustain the company and the investment they had put out for the business. Who wants to run a business which is going at a loss for the every financial period ? Every charity companies makes money. Period.

 

Everyone has families to feed and things to buy.