COE prices soar because.....

[Maxus-MIFA9]

Certificate of Entering!!

 

Where you want to enter???

[JumpySpeedFiend]

Buy if you can afford. Don't buy if you can't. Simple right?

[Tedlhw]

-ve will kill off the entire B&B market coz the COE will be too high.

 

all u will see on the roads are either BMW, Merc, Audi, Lexus and VW.

 

I think VW is the new Honda/toyota.

I have been given to understand some of their models are priced below equivalent Japanese cars.

[Cluboxed]

I think VW is the new Honda/toyota.

I have been given to understand some of their models are priced below equivalent Japanese cars.

 

really? which model is priced below the japanese equivalent?

[Tigerwoods]

Hello,

Did you read my posting ? I mentioned Merc, BMW, Toyata, VW and Audi as B&B cars based on new cars registered in Y2012 ...... Not based on the overall car population in Singapore.

Can teach me... What will become of those previous B&B cars

 

[Tedlhw]

really? which model is priced below the japanese equivalent?

 

The actual purchase price depends on a lot factors eg promotions, SE etc.

So i guess you'll always be able to find one example to prove that I'm wrong.

 

However if you just look at the OMV, the entry level Jetta is ard 18K, while the entry level Civic is 21K.

So assuming similiar markups, COE etc, it would be fair to assume the Jetta would cost less than the civic.

[Civic6228]

Can teach me... What will become of those previous B&B cars

 

Sorry , dun know how to teach cos I dun know the answer ...

[Jolie888]

The actual purchase price depends on a lot factors eg promotions, SE etc.

So i guess you'll always be able to find one example to prove that I'm wrong.

 

However if you just look at the OMV, the entry level Jetta is ard 18K, while the entry level Civic is 21K.

So assuming similiar markups, COE etc, it would be fair to assume the Jetta would cost less than the civic.

Rubbish!

You can't compare using OMV alone. You need the selling price to determine AD markup and their gross margin!

Jetta OMV is $21-24.5K (Ref: LTA OneMotoring), list price is $127-144K.

Compare (many examples, not one):

Mazda 3, OMV $22K, list price $112K ... VW's markup higher

Nissan Almera, OMV $15K, list price $106K ... VW more expensive

Toyota Altis, OMV $15K, list price $111K ... VW more expensive

Honda Civic, OMV $21K, list price $126K ... VW markup higher

 

If you argue that VW has promos, the Jap ADs also got promos what.

So in short, VCS' markup and gross margins are much steeper than the Jap ADs.

DSG / Mechatrronic Unit very unreliable somemore ... plenty of heartaches and problems leh.

Edited April 17, 2012 by Jolie888

[Theobserver]

Rubbish!

You can't compare using OMV alone. You need the selling price to determine AD markup and their gross margin!

Jetta OMV is $21-24.5K (Ref: LTA OneMotoring), list price is $127-144K.

Compare (many examples, not one):

Mazda 3, OMV $22K, list price $112K ... VW's markup higher

Nissan Almera, OMV $15K, list price $106K ... VW more expensive

Toyota Altis, OMV $15K, list price $111K ... VW more expensive

Honda Civic, OMV $21K, list price $126K ... VW markup higher

 

If you argue that VW has promos, the Jap ADs also got promos what.

So in short, VCS' markup and gross margins are much steeper than the Jap ADs.

DSG / Mechatrronic Unit very unreliable somemore ... plenty of heartaches and problems leh.

 

Well said

[Tedlhw]

Rubbish!

You can't compare using OMV alone. You need the selling price to determine AD markup and their gross margin!

Jetta OMV is $21-24.5K (Ref: LTA OneMotoring), list price is $127-144K.

Compare (many examples, not one):

Mazda 3, OMV $22K, list price $112K ... VW's markup higher

Nissan Almera, OMV $15K, list price $106K ... VW more expensive

Toyota Altis, OMV $15K, list price $111K ... VW more expensive

Honda Civic, OMV $21K, list price $126K ... VW markup higher

 

If you argue that VW has promos, the Jap ADs also got promos what.

So in short, VCS' markup and gross margins are much steeper than the Jap ADs.

DSG / Mechatrronic Unit very unreliable somemore ... plenty of heartaches and problems leh.

 

Wow, very well researched!!

 

I guess my perceptions were generalized from some friends, who were in the market for a BB car.

Many of those that would have bought Honda went over to buy VW, cos it was cheaper/better 'value'/better 'face value'.

Guess thats not the case. Thanks for the correction.

[KARTer]

Where you want to enter???

i think it's listed at the back of the cert.... let me check....

[KARTer]

Can teach me... What will become of those previous B&B cars

Meanwhile, the 'export value' of cars scrapped here may be worth considering as it affects the 2nd hand value of these car one way or another. It seems these cars are popular in some 3rd world countries.

 

Will jap cars scrapped here and exported to these countries fetch high prices there than conti say VW etc scrapped here, taking into consideration the cost of maintenance / parts in these 3rd world countries? I am not sure if our scraped cars are popular in 1st world countries. Anyone knows?

 

 

[Yaloryalor]

He means COE price soar because the Economy Is Doing Well??? Does he means that during the super low COE era, the economy is not doing well?

 

Say economy is doing well so he can have fat bonus mah!

[Nhyone]

Taking a look at the age distribution of cars from LTA, the COE quota will remain low until 2016.

 

The reason? The 2006-2009 cohort is not giving up their cars as expected, and they are 50+% of the car population.

 

Take the 2006 population. There were 116,741 cars registered. There are *still* 115,335 cars remaining (Dec 2011; 5 years). It is the same for the 2007 and 2008 cohort.

 

(2009 and 2010 cohort are still within 3 years. Traditionally, the car population starts to drop after the 3rd year, but we can assume the new-normal is that people will keep their cars longer now.)

 

 

Compared this to the 2005 population: 109,165 cars registered, 88,437 cars left as of last year (Dec 2010; 5 years).

 

 

Anyone who wants to buy a new car from now to 2016 is going to hurt... unless LTA introduces some new schemes to quickly recycle COEs.

Edited April 18, 2012 by Nhyone

[Jim]

Despite what some say about driving being a want and not a need, one only need to look at our neighbours - from Malaysia to Indonesia to China and Taiwan, all these countries subsidise their petrol and would rather tolerate shortages than raise petrol prices.

 

In fact, at current petroleum prices, these countries are spending more subsidising petrol than subsidising food.

 

Also, some say the revolutions in Tunisia and Egypt were about tyrannical rule. These people lived under tyrannical rule for decades. What changed? Some say internet was the cause, but it was really just an enabler. What really changed was the rise in prices in the months leading up to the revolution, fuel prices being one of them.

 

Simply put, rising costs of driving is rocket fuel for revolutions. Even Obama will have trouble getting re-elected if petrol prices keep going up in the US.

 

I think Singaporeans have every right to complain.

 

However, let's not get carried away by imaginary nightmare scenarios.

 

According to this CNA article:

 

http://www.channelnewsasia.com/stories/sin...1112102/1/.html

 

"There are nearly 1.1 million foreigners employed in Singapore as at end-2010.

 

Out of the 871,000 work permit holders employed in Singapore, 248,000 are in the construction industry."

 

There's another 550,000+ PRs.

 

To say that 2 million more high net worth foreigners are coming in the next few years is pure fearmongering, unless you consider maids and construction workers, high net worth.

 

I send my children to a daycare full of foreigners. The people sending and picking their children in cars all look very local. The foreigners either cycle or walk. Most foreigners are even more shocked by local car prices than Singaporeans, because they can compare.

 

Singaporeans, via ignorance and conditioning, accept 2006-2010 car prices as cheap, even though that was already the highest on the surface of the Earth.

 

Foreigners definitely do buy cars, but their effect is over-exaggerated, and there is no need to imagine nightmare scenarios in the future because it is not going to happen... unless you happen to sell cars and want people to stop thinking and just buy buy buy now before the prices hit the roof.

[13177]

Have to wait until 2016? Still a long way to go.

[Tigerwoods]

Meanwhile, the 'export value' of cars scrapped here may be worth considering as it affects the 2nd hand value of these car one way or another. It seems these cars are popular in some 3rd world countries.

 

Will jap cars scrapped here and exported to these countries fetch high prices there than conti say VW etc scrapped here, taking into consideration the cost of maintenance / parts in these 3rd world countries? I am not sure if our scraped cars are popular in 1st world countries. Anyone knows?

I think outside of SG, Jap cars are still being sought after due to their proven reliability and lower maintenance costs.

From this sharp rise in COE prices crack open the mindset of SGeans.

All wanted a Conti all along but buy a Jap/Korea/China car due to cost factors.

Now that its more of less a levelplaying field, all crowd into C&C like sheep...

 

The Japs car dealers after decades of ruling this market did not work on shaping the mind of SGeans and continue the age old technique of price to sell.

[Jim]

I think this is also relevant, from the US Bureau of Labor Statistics. Singaporeans on average, work longer hours than anyone else in the world. That means every minute saved by driving is worth a lot more to Singaporeans than most people in the world. Also, every delay due to public transport breakdown, is also more costly than anywhere else in the world.