Agent profit

[Nine_eleven]

sure, i'm not saying that the agent should not make profits.

 

all i'm saying is that certain models have better value than others that the agent sells.

 

why, bacause it'll have an effect on scrap paper values, and ultimately depreciation if i want to sell off my car early...

 

look at the mazdas for example, look at the launch price of the mazda 6 and the current price... the drop is alot more than the COE drop.

 

those early owners paid thru the nose in depreciation, mainly because the market discounts agent profits when offering resale prices...

 

buyers factor this in without realising it...

[Kokanadan]

Afterall, buying a car is a big investment, hence it calls for certain due diligence from the buyer.

The facts and figures are made transparent by LTA, therefore buyers should exercise their due diligence to find out more on what they are paying before signing the dotted line.

 

As early adopters, they have to factor the risk of paying a premium & high depreciation, especially when there's hefty margins "hidden" in the listed price (probably hidden is an over-statement).

In a nutshell, agents maintain a high margin when they initially launch the products because of many uncertainties and risks that they need to bear, such as slow take-up, internal cannibalization of other models and etc. However, there's volume, it's natural to expect a drop in the margin and resulting a drop in price. As such, this has been a general trend and most buyers should observe and exercise their judgement when buying a new ride.

in my humble opinion, agents shouldn't really be faulted for imposing high margins.

 

Willing seller, willing buyer.

 

just my $0.02

[Gl240]

Willing seller, willing buyer[/color].

 

Bro, you got it right.....

[Djcoolmax]

So in the end, it's not the profit, it the value proposition. How much of a value are you getting out of the car and if the car is the car you want.

[Nine_eleven]

exactly.

 

agent's profit can also be used to decide for yourself which car to take if ur indifferent between just 2 models.

[Nine_eleven]

true, willing seller, willing buyer.

 

i wouldn't fault the agent for reaping high profits.

 

but i would fault the buyers who buy these cars with built in high margins, and then complain that they paid a big price for their cars when the value drops...

[Joneses]

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.

 

maybe mazda japan buay song mazda singapore's distributor and give them very few numbers to sell? den the singapore distributor got no choice but to maximize profit by charging high high cuz they know sure die die got ppl gian mazda cars? just like sure die die got ppl buy falari liddat maybe? hor?

[Zze121]

Just came back and drive past all the cars in my HDB multi-story car park, only spot one 6 in 300 cars, Singaporean are smart buyer. Agree that MM is making big buck with few unit to sell. The numbers of car to sell here is control by their principal. COE is nolonger the main factor to look at, OMV rebate is also only a few k different during scrap(b4 02/04,and after 02/04), and we are trying hard to save the little $$ for Fuel cost, so this profit cost is another component that we can explore and take into much consideration when buying a car.

[Mtoh]

MZ3 was priced as high as 88k for a hatch back 1.6A

just imagine the lowest point is 53k

 

and COE is is then hovering around 28k now at 12k

 

COE difference is 16k

total car price 35k difference,

 

tats a cool 19k cheaper.

 

can u guys remember the Mazda is once the cheapest of all Japanese makes, and in 04 and 05 and 1H of 06, they were the most expensive Jap brand.

Well, you need to pay a premium for design and marketing (aka associating with conti-car handling)

 

well.....good luck for early birds

[Keithpapa]

Afterall, buying a car is a big investment, hence it calls for certain due diligence from the buyer.

The facts and figures are made transparent by LTA, therefore buyers should exercise their due diligence to find out more on what they are paying before signing the dotted line.

 

As early adopters, they have to factor the risk of paying a premium & high depreciation, especially when there's hefty margins "hidden" in the listed price (probably hidden is an over-statement).

In a nutshell, agents maintain a high margin when they initially launch the products because of many uncertainties and risks that they need to bear, such as slow take-up, internal cannibalization of other models and etc. However, there's volume, it's natural to expect a drop in the margin and resulting a drop in price. As such, this has been a general trend and most buyers should observe and exercise their judgement when buying a new ride.

in my humble opinion, agents shouldn't really be faulted for imposing high margins.

 

Willing seller, willing buyer.

 

just my $0.02

 

I agree with u except that car is a big liability instead of investment.

[Keithpapa]

[Keithpapa]

There is a lot of early birds like my colleague which now commenting on the M3 high FC. He did not even test drive and committed during the early bird M3 pre launch.

[Kokanadan]

a big investment on a big liability?

 

as for MZ3, I think buyers are getting smarter and they realised that for the same price, they could get other better valued cars than MZ3, and hence the agent has to drop in price to attract take-up.

It's very true that the whole premium previously found in MZ3 was largely due to its design, but nothing wrong with that, cos everyone's falling Apple's stuff becos of their designs and almost everyone (if not everyone) are suckers for lookers

Edited December 13, 2006 by Kokanadan

[Joneses]

liability or investment, it all depends what you want out of life..

 

getting a mercedes S600 purely for an A to B mode of personal transport? liability

 

getting a ferrari to bed high society chicks? investment

[Iziz]

Hi,

 

Thats the reason y I always ask my customers to test-drive the car b4 they commit, esp those who did their homework. Paper specs will only be paper specs, test drives always reveal more of the car, handling, the feel of the car, etc...

 

Buying a car is a huge investment and it is impt tat u r making an informed decision b4 u commit, not buy becoz it is a xxx brand or becoz it is made in xxx, sure no problem. One man's meat is another man's poison.

 

Yes, I know I am jeopardising my chances by asking them to test drive when they have their mind set but sticking to my principles of providing good customer service, tat includes helping them make informed decisions, and tat to me, is more impt den making an easy sale.

 

Cheers!

IZ

[Cheekg98]

if internally, TC set $XXX amount for freebies, will u give all to customer ?

Edited December 13, 2006 by Cheekg98

[Guest Julio369]

Cannot calculate like that lah.

 

ARF, Customs, GST, COE etc. are all paid by the buyer's hard earn money, and not by the dealer. Dealer pays only the car OMV, of course not taking into consideration their overheads.

 

Some more these are cash transaction (via banks), no credit terms! don't know if dealery order cars from factory got 30/60 days terms or not, if got terms with factory, than dealer cash flow very good, very lucrative.

 

We should use the OMV prices to calculate the GP. E.g. Margin/OMV X 100%= Gross Profit.

 

Hence, for Altis,assume OMV = $15000, Margin= $6068, than $6068/S$15000 X 100% = 40% GP.

 

Some model may have up 90% GP!

 

Dealers also make money from Bank loans, insurance, EX servicing & EX parts.

 

That's why long time ago dealers KPKB why only car industry so tansparent & not other industry like electronics & retails!!!

[Keithpapa]

Then, no car dealer is chargng reasonable. Anyay, there is also associated cost for locally fitted accessories like audio, short rim etc which was not factored inside the OMV.