Jump to content

COE bid deposit


Eric76
 Share

Recommended Posts

Just watch the news it said the bidding deposit will down to 5k from Oct onwards, what's the implication? More guts for dealers to bid so higher COE?

↡ Advertisement
Link to post
Share on other sites

Looks like next round it will hit $20K liao as ADs & PIs are bidding with buyers' $$$$$$$

Edited by 7007
Link to post
Share on other sites

PI and AD complain about having a 10k deposit eats into their cash flow. What rubbish...some of them ask customers to deposit 10k, some a few ks etc...I guess they are preparing a reason for the next spike in COE prices.

 

Petrol price up, COE price up, but luckily share prices also up, so still can tahan.

Link to post
Share on other sites

Aug 25, 2009

$10,000 deposit halved

By Christopher Tan

 

THE Land Transport Authority on Tuesday halved the $10,000 deposit bidders need to fork out for each car and truck COE bid.

 

The authority said the move is temporary, and will be effective for the October 2009 to September 2010 tender period. It came after years of clamouring from the motor industry.

 

'It is a huge cost savings for companies as well as individuals,' said Automotive Importers and Exporters Association president Neo Nam Heng. 'I think it will certainly encourage more individuals to do their own COE bidding.'

 

The $10,000 deposit has been seen as a big stumbling block for individual vehicle buyers who want to submit their own bids. Hence, the majority leave the task to motor dealers, sometimes resulting in disputes.

 

But for motor traders, the move represents substantial savings. Mr Neo said for every $1 million a company is required to set aside for COE bidding, it will incur about $8,000 in interest charges per month.

 

'Some dealers need to hold on to their COEs for three to six months, so can you imagine the cost?' he said.

 

With the deposit halved to $5,000, he said the interest will likewise be halved to $4,000 per month.

 

The LTA said it has received feedback from motor traders that companies are still facing some cashflow problems.

 

A spokesman said: 'This reduction in the COE bid deposit is a temporary relief measure to help businesses, particularly motor traders and prospective vehicle owners reduce their financing needs and free up funds currently used as deposits.'

 

But Mr Neo said he hopes it can be permanent. 'If this proves to be workable and there are no hiccups, I hope it can be extended,' he said.

 

The Straits Times understands the LTA will also announce another 'pro-business' initiative: doubling the time that deregistered vehicles can be kept in export-processing zones to 24 months.

 

Industry players said this will also help motor traders source for buyers in the current slowdown.

Link to post
Share on other sites

when there's feedback from business man, our germent act switfully, when consumer feedback nobody cares.........crude oil is down, but petrol is up :ph34r:

Link to post
Share on other sites

Guest Julio369
Neutral Newbie

looking at the no. of decreasing bids the past few months, looks like LTA trying to stimulate the COE market, and AD. PI, and kancheong buyers will be really excited, my-tu-liao.....equates COE up & up.

 

with COE quota cut, now everyone wants a piece of the pie. LTA just opened the floodgate by lowering the deposits.

Link to post
Share on other sites

with COE quota cut, now everyone wants a piece of the pie. LTA just opened the floodgate by lowering the deposits.

I don't think the COE will go up because of this.

 

If COE is above $10k, it doesn't make a difference if the deposit is $5k or $10k. You still need to pay the difference eventually.

 

If the deposit is $5k, a lot of people (who couldn't afford the $10k downpayment) will be try to get the COE at $5k to $10k.

Link to post
Share on other sites

Something is fishy with this change. It does not seems to benefit car buyers at all, as the final price of COE still have to be bourne by car buyers.

I can only hope this is a precurser to something big...like changes to OPC scheme or no need COE for OPC in future!

 

 

$1million dollar divide by $10k = 100 COEs.

Tell me which PI can sell 100 cars in a month.

 

If it does not benefit small PI, it can only means a savings of $8000 for every 100 cars sold will benefit the big-time AD more?

 

BUT BUT BUT.....If AD can sell 100 cars per month...what the fark is $8000 about....its peanuts man! The profit from 100 cars sold are Much much more than $8000!

Further more most AD accepts at least $5k to $10k of deposits, so whats the problem anyway for the AD to complain about cash flow?

If $8000 can be a cash flow problems for big AD or PI....then something must be seriously wrong with the company!

 

Ok for argument sake, the savings of $8000 for every 100 cars COE....is the AD going to reduce the car price by $80 this weekends due to this new saving scheme?

 

 

Link to post
Share on other sites

Something is fishy with this change. It does not seems to benefit car buyers at all, as the final price of COE still have to be bourne by car buyers.

I can only hope this is a precurser to something big...like changes to OPC scheme or no need COE for OPC in future!

 

 

$1million dollar divide by $10k = 100 COEs.

Tell me which PI can sell 100 cars in a month.

 

If it does not benefit small PI, it can only means a savings of $8000 for every 100 cars sold will benefit the big-time AD more?

 

BUT BUT BUT.....If AD can sell 100 cars per month...what the fark is $8000 about....its peanuts man! The profit from 100 cars sold are Much much more than $8000!

Further more most AD accepts at least $5k to $10k of deposits, so whats the problem anyway for the AD to complain about cash flow?

If $8000 can be a cash flow problems for big AD or PI....then something must be seriously wrong with the company!

 

Ok for argument sake, the savings of $8000 for every 100 cars COE....is the AD going to reduce the car price by $80 this weekends due to this new saving scheme?

 

 

It's not simple lah my friend...

Lowering the COE deposit only benefit the consumer. So now a lot of the consumers can bid their own COE and buy the car at the "correct" price.

It's the other side of the knife for the dealers.

Link to post
Share on other sites

It's not simple lah my friend...

Lowering the COE deposit only benefit the consumer. So now a lot of the consumers can bid their own COE and buy the car at the "correct" price.

It's the other side of the knife for the dealers.

 

Yeah lets bid the COE at the "correct" price also...

Link to post
Share on other sites

Lowering the COE deposit only benefit the consumer. So now a lot of the consumers can bid their own COE and buy the car at the "correct" price.

It's the other side of the knife for the dealers.

 

Not really. Try asking for price with and without COE and compare the difference (if they would bother to quote you in the first place).

 

On one hand, these dealers KPKB about the deposit, on the other hand they refuse to sell you at reasonable price when you are bidding on your own. [sweatdrop]

 

It's not so simple to buy a car in Singapore and even more difficult when you want to sell.

Edited by Kangadrool
Link to post
Share on other sites

Neutral Newbie

I got a question. What is the difference between own-bidding or dealers bidding.

 

I understand that if you self-bid, you need to have that amt (be it 5k or 10k) in your bank account for the bidding.

 

However in the case of dealer bidding, do you write that amount to the dealers or just some contract (3-6 mths) bidding ?

 

 

Link to post
Share on other sites

Own bidding: yes, you pay deposit upfront to LTA.

Dealer bidding: depends. Some dealers collect 10K deposit (LPPL), some only a few K booking fee (good for your cashflow). Hardly ever any dealers will let you decide how much you want to bid. They will bid high to clear their stocks or bid low (in order to clear other priority back log orders or ...............).

 

Just make sure the car you wanted to buy, the dealer is willing to sell you at reasonable price w/o COE.

 

 

Link to post
Share on other sites

it will entice more bids, eventually driving up COE prices. just look at HDB. some couples apply for fun. that's why always oversubscribed. gonna happen to COE. gahmen learning from gahmen. this will prevent super low COE prices from happening again.

Link to post
Share on other sites

Neutral Newbie

I got a question. What is the difference between own-bidding or dealers bidding.

 

I understand that if you self-bid, you need to have that amt (be it 5k or 10k) in your bank account for the bidding.

 

However in the case of dealer bidding, do you write that amount to the dealers or just some contract (3-6 mths) bidding ?

Now you will need only $5K in your POSB/DBS, OCBC or Citibank account - I think UOB stops supporting individual own bidding. See my blog post Bid for your Own COE for more details.

 

For dealers, you will just need to place a deposit and they will put up the rest of the deposit. However, you will need to sign a purchase agreement with a lot of fine prints. Your deposit will be forfeited if you back out before a successful bid. If you change your mind about the purchase after a successful bid, it is more complex and you will need to check those fine prints. The dealers also need to protect themselves through the legally-binding purchase agreement.

 

You will have full control in your own bidding but you may not get the best price for your preferred make/model. If you are open to PIs as well as other alternate make/model, you should be able to find a reasonably good buy with your own COE. See the comments on my posts about the experiences of some readers.

 

Cheers,

skxly

Link to post
Share on other sites

it will entice more bids, eventually driving up COE prices. just look at HDB. some couples apply for fun. that's why always oversubscribed. gonna happen to COE. gahmen learning from gahmen. this will prevent super low COE prices from happening again.

Personally, the reason why HDB prices are at record high is due to BTO - this is beneficial to HDB cos no more oversupply problem - they collect orders then build, not like previously in the 90s whereby they forecast demand and overbuild. Therefore, i strongly believe HDB prices will keep on moving up as long as there's a mismatch of supply & demand - new citizens, PRs and the shortage of resale flats available for sale.

↡ Advertisement
Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share

×
×
  • Create New...