How does COE price being determine?

[Wind30]

one thing I noticed is that the recent super dip in the COE prices correspond to the 6th bid for people who booked during the chinese new year promo.....

 

so if I actually refused to top up, I probably could have gotten my COE.....

[Zedzee]

There was someone who bidded $1 for the COE and he got it. I think he was featured in the newspaper. He said something like he monitored for a long time and saw the opportunity.

[Leepee]

Normal COE valid for 6 months, if you never register, then its forfetited.

Cat.E COE valid for 3months.

 

The nunmber one reason WHY people don't want to bid the COE for themselves is that they cannot afford the bidding deposit of $10k. You may think I am joking, but this is the true fact.

If not everyone should be encouraged to bid for their own COE, and then take the COE to AD/PI to get their dream car.

I know its possible because I went tru this phase last month. You can definately get a cheaper deal on the car price from ALL the PI, and a few AD.

 

Singaporeans are typically like the Mr.Tan who wants to buy the $675k HDB, no spare cash on hand, have to borrow $33k from relatives for the deposit on the house.

This assets rich but cash poor is very very true for most of Singaporeans I know of.

[Zakkwylde]

So will we get back the 10k deposit? Does it apply to motorbike as well? Buy how much cheaper usually is the car if we actually bid our own COE? U are getting me all excited....hehehehe

[Jeffang]

how to gang up??? everyone also want the coe to sell their car...

and if the price too low they will need to return the money to buyer...

 

so they will try to bid higher inorder to earn your $$$ (as long not to fall below the rebate)

Edited May 23, 2008 by Jeffang

[Leepee]

I have being studying the COE trend. the six biddings style by the AD has indeed created a trendable prediction for the COE outlook.

I have done a preliminary write-up below. Hope this will help you guys to know when is the right time to self-bid for your own low COE.

I was spot on when I managed to get my $11,009 COE for May, now my wife is happy driving her new car.

 

Cat.A Trend.

 

May, 2008 2 $15,701... 1bid

May, 2008 1 $11,009... 6bid (Drop)

Apr, 2008 2 $15,600... 5bid

Apr, 2008 1 $16,930... 4bid

Mar, 2008 2 $15,389... 3bid

Mar, 2008 1 $14,351... 2bid

Feb, 2008 2 $12,856... 1bid (reset due to previous low)

Feb, 2008 1 $12,002... 1bid (CNY demand still low)

Jan, 2008 2 $12,001... 6bid (Drop)

Jan, 2008 1 $14,052... 5bid

Dec, 2007 2 $14,001... 4bid

Dec, 2007 1 $12,001... 3bid

Nov, 2007 2 $14,404... 2bid

Nov, 2007 1 $16,839... 1bid (reset because of the previous dip)

Oct, 2007 2 $12,401... 4bid (DROP)

Oct, 2007 1 $16,999... 3bid

Sep, 2007 2 $17,941... 2bid

Sep, 2007 1 $17,999... 1bid

Aug, 2007 2 $8,118... 6bid (DROP)

Sug, 2007 1 $17,001... 5bid

Jul, 2007 2 $16,000... 4bid

Jul, 2007 1 $14,801... 3bid

Jun, 2007 2 $15,591... 2bid

Jun, 2007 1 $16,181... 1bid

May, 2007 2 $17,010... 6bid (no drop due to overdemand from the $5200 all time low coe)

May, 2007 1 $16,159... 5bid

Apr, 2007 2 $14,601... 4bid

Apr, 2007 1 $14,000... 3bid

Mar, 2007 2 $13,504... 2bid

Mar, 2007 1 $12,602... 1bid

Feb, 2007 2 $5,200... (Lowest COE)

Edited May 23, 2008 by Leepee

[Leepee]

Motorbike bidding deposit is only $200.

 

Usually you can get $3k-$5k cheaper from PI/AD for mid range car if you have a ready COE on hand.

But many car buyer see no up this $3k savings, they rather save all the hassle and just let the PI/AD earn their money.

[Zakkwylde]

Do you bid for COE every month? Once you put in the 10k deposit you are able to do it unless you withdraw ur deposit is it?

[Leepee]

I don't bid every month lah..you think I rich meh....buy car to keep har?

I bided last few round because I wanted to get a car a particular car from PI.

 

Looking at the current trend, the next dip could well be in the 4th bid (July first bidding exercise).

[Balacam]

Usually you can get $3k-$5k cheaper from PI/AD for mid range car if you have a ready COE on hand.

But many car buyer see no up this $3k savings, they rather save all the hassle and just let the PI/AD earn their money.

 

 

I don't see the savings.

 

If a buyer already has COE on hand i.e. he had already paid e.g.$10,000 for COE.

 

He paid $3k cheaper for the car but he has to pay for the $10k COE, so is he paying $7k more?

Edited May 23, 2008 by Balacam

[Galantspeedz]

usually the price the dealer quote you is with COE.

 

so when u ask them the price excluding the COE is a different price.

 

the price difference will depend on what price they based their COE on.

[Leepee]

Are you a car owner now? If yes, then you ought to be shot! Sorry for my rudeness.

But I don't blame you, there are many blur car owners who are ignorant. These are the people who really push up and help the COE to maintain at high level since it started 18 years ago.

 

Please think like a business man.

 

When you are in the car business, there are basically three simplified components.

1)Car cost (fixed due to OMV)

2)COE cost (Variable each month)

3)Your desired profits (depends on businessman greed)

 

You add up 1+2+3 = Advertised selling price of car.

 

One fine day, a fellow come up to you with his own COE, and wants to buy a car from you immediately.

If you have a car with the fitting color and specification in your warehouse, that is not allocated to anyone yet and perfectly match this fellow's requirement , would you want to sell it to him?

All PI would, and some AD may sell it to this fellow. (from my experience)

 

If this fellow ask you to give him some discounts, it will surely eat into "your desired profits". Would you want to earn less and sell the car to this fellow since he is already in front of you with the ready COE? Or you tell him Sorry Fixed price, to be fair to those car buyers who take up the 6bids package.

 

You tell me the answer!

Edited May 23, 2008 by Leepee

[Albeniz]

About the COＥ mechanism...

Can car dealer gang up to have some control over the price.

[Lv3338]

determined by demand and supply

[Nys75]

Agreed. Maintain high COE = higher selling price = more loan = more interest = more profit given by bank.

[Leepee]

Either the ADs are trying to gain market shares, or market is still weak.

 

It seems that some of the AD did not raise the full $4k++ price upward for Cat.A cars this time round. Some only raise $2k.

 

Even cars for Cat.B, some AD only raise $1k upwards this time round.