Will Forbidding Dealers to Bid for Buyers Lead to Lower COE?

[Civic101]

Your view as per title

[Ithunk]

maybe if all bidders co-operate

[Silver_blade]

I doubt it will. If one has decided to buy a car based on market rate at the time, most will expect to pay pretty much the same. In fact, I feel some kiasu buyers may cause the premium to increase due to the heat of the moment especially nearer to the closing of bidding exercise... bit like gambling (some just don't know when to stop).

[Nhyone]

Three suggestions to lower COE:

 

1. Treat COE like COV. In other words, cash only.

 

The price of the car is akin to the valuation. COE is an extra the buyer is willing to pay.

 

 

This won't stop cash-rich buyers, so the next suggestion is absolutely necessary:

 

 

 

2. You pay what you bid. No more capped at the lowest bidder. People will now be more inclined to put in more sensible bids instead of their maximum bids.

 

(Plus, while people can afford sky high prices, they can't stand the idea that someone else got a better bargain than them.)

 

 

 

3. Economic crisis.

[KARTer]

Three suggestions to lower COE:

 

1. Treat COE like COV. In other words, cash only.

 

The price of the car is akin to the valuation. COE is an extra the buyer is willing to pay.

 

 

This won't stop cash-rich buyers, so the next suggestion is absolutely necessary:

 

 

 

2. You pay what you bid. No more capped at the lowest bidder. People will now be more inclined to put in more sensible bids instead of their maximum bids.

 

(Plus, while people can afford sky high prices, they can't stand the idea that someone else got a better bargain than them.)

 

 

 

3. Economic crisis.

 

this is worth a try... say for 6mths to 1 year and see the results... but i doubt LTA will do it, coz it will kill their goose which has been laying golden eggs in the past 20yrs++...........

 

[Mllcg]

this is worth a try... say for 6mths to 1 year and see the results... but i doubt LTA will do it, coz it will kill their goose which has been laying golden eggs in the past 20yrs++...........

 

where got kill?

 

it actually is better to some extent where those die die must get car by this week or head sure roll that kind.

 

throw in 80k.

[SimonTan]

The idea was about to implement few years back.

But consumers you n me, objected to self bidding. Saying it's too hassle to buy car, many prefer the dealer to packaged it for them.

So we have the arrangement.

 

The complain is COE is very expensive. But the rule of bidding is 100% fair and square.

If want to change the rule, must make it as fair as possible.

 

 

[Ingenius]

why should the gahment make coe price lower ?

[SimonTan]

Yes...as long as something is fair and square....it's up to market demand to set its price.

 

Unless we can come up with valid reasons it's not fair or equitable, then propose gov to make it more equitable.

 

Yes I agree expensive COE will cause a shift in attitude or social habits, but that is unavoidable.

As long as something is fair and square, it's effect on the society is something we have to learn to live with it.

 

 

[KARTer]

where got kill?

 

it actually is better to some extent where those die die must get car by this week or head sure roll that kind.

 

throw in 80k.

yes, the die-die-must-get buyers will pay thru their nose, but the rest will bid sensibly and pay much less.... of course it can also go the way you said.

 

example one:

current system, order of bid (assuming 10 guys make bids for five coe certs available):

100k, 99k, 89k, 79k, 69k (these are the top five successful bids, all pay 69k to get their coe certs), LTA collects 69k x 5

pay-as-you-bid system:

Assuming buyers still bid the same amount as above,

LTA collects 100+99+89+79+69 = ? ..... more than 69 x 5 = ?? <----- as per your 'prediction'.

 

however, in the example below, the result is the opposite ie LTA collects less money when buyers are more cautious and bid low:-

pay-as-you-bid system:

20k, 19k, 18k, 17k, 16k ie LTA collects only 20+19+18+17+16 = ?

 

[KARTer]

Yes...as long as something is fair and square....it's up to market demand to set its price.

 

Unless we can come up with valid reasons it's not fair or equitable, then propose gov to make it more equitable.

 

Yes I agree expensive COE will cause a shift in attitude or social habits, but that is unavoidable.

As long as something is fair and square, it's effect on the society is something we have to learn to live with it.

there's one aspect which needs to be looked at:

 

some systems, eg current COE system, favour the rich even though the poor actually need the cars as much as the rich if not more. Basically the rich bid high (and in so doing edge out the poor) to get the right to put their cars on the road. The poor may need the cars to earn a living, where the rich use their cars for leisure.

 

how are we going to address this?

[KARTer]

why should the gahment make coe price lower ?

when can govt delivere a good, efficient public transport system that can truly be an alternative mode of transport?

[Watwheels]

I didn't know there are Marlboro Tan supporters here. Suggestions using his pay & pay policy of COE to COV. You must enjoy paying for something that's not really effective? I can see some ppl kenna brainwash by the system, whatever their suggestions is it's so closely linked to current policy. Can these ppl stop? What you are doing is boosting their ego making them think their ideas are very good when it's not. That's why they never get feedback from any road users, they think their idea is the best and you are the ones encouraging them.

[Civic101]

Personally I think dealers bid high bcos they are not the ones paying and they need to secure market share, while buyers will not be so agressive in their bids since they have to pay for it. I suspect that is the reason why govt die die don't want to forbid dealers from bidding for customers as they are worried their revenue will drop citing excuses that it is for the convenience of buyers, since when they are so considerate?

[Nhyone]

I can see some ppl kenna brainwash by the system, whatever their suggestions is it's so closely linked to current policy. Can these ppl stop? What you are doing is boosting their ego making them think their ideas are very good when it's not.

Any ideas you would like to share?

[5936]

Keep dealers out.

Use standard rate coupon (like the $10 HDB flat coupon)

No bidding.

Just ballotiing.

Edited July 20, 2011 by 5936

[Alheych]

look at how many items eventually become overpriced at all auctions. kiasu people may even inflate the price.

[Mona-vie]

Keep dealers out.

Use standard rate coupon (like the $10 HDB flat coupon)

No bidding.

Just ballotiing.

 

Balloting will never happen...... Cause it is going to cause profits to crash significantly.... Just see how much $$$ they make with each COE bid.

 

Btw, I believe such prices are controlled one.

 

Anyone its not going to come down anytime soon. Cause most of the people prefer it to go up rather than down.