How low will COE go?

[Camrysfa]

Still old 100%ARF provided using the earlier secured COE before the announcement.

Which is why those CAT.E speculators HUAT big big. They are selling their CAT.E COE at reported $20,000 above paper value!

Today's business times paper even reported BENTLY agent is asking its UK supplier to urgently source and delivery as many BENTLY cars to Singapore before May( because the Cat.E validity is 3months ).

Seems like many richie rich car buyers are very smart to buythese high OMV superstars with the Cat.E COE!!

 

 

quite confusing...... it is like saying a chap with CAT E COE ( obtained before 2013 budget ) can register a car in Mar 13 and enjoy exemption from the new tiered ARF law.

[Angcheek]

and i think the idea is that gahmen does not want many to drive

Yes, I believe so. But really , we wont be doing all these if lta had managed it properly. Now , everyone is paying for their mistake. Felt so stupid.

[Angcheek]

hmm...

 

let say a conti car cost 200k omv 40k coe 90k end of 2 years,

 

coe rebate - 72k , omv - 30k (75% issit) body say 25k = 127k (loss- 200-127 = 73k)

 

so lets say coe crash from 90k to 10k,20k (drop of 70k)

 

wouldn't the replacement car net off ? hence my thinking is no difference .

 

 

However, if COE drops slightly from 90k to 60k-70k ... then not much difference but then again new ARF tax will again net it off.

 

i am no expert.. just thinking about the whole system .

 

Im no guru. Just sharing my view

In term of absolute overall amt, yes I agreed w you for the above ave class.

But the dp and loan will affect many . Thats the objective , to stop people buying

Edited March 2, 2013 by Angcheek

[Throttle2]

hmm...

 

let say a conti car cost 200k omv 40k coe 90k end of 2 years,

 

coe rebate - 72k , omv - 30k (75% issit) body say 25k = 127k (loss- 200-127 = 73k)

 

so lets say coe crash from 90k to 10k,20k (drop of 70k)

 

wouldn't the replacement car net off ? hence my thinking is no difference .

 

 

However, if COE drops slightly from 90k to 60k-70k ... then not much difference but then again new ARF tax will again net it off.

 

i am no expert.. just thinking about the whole system .

 

The difference is that if COE is so low, dealers will raise prices or increase their margins.

It is not quite a dollar for dollar situation. Also base on an OMV $40k car, you wont get $25k after two years. The moment it gets driven out of showroom, immediately becomes $25k already.

 

The conti with an OMV of $40k and a COE of $20k then, will likely cost, $150k?

 

One also has to factor in the penalties of breaking the loan.

 

All in all , it is very simple.

If one is talking about normal car, like Camry, or C180, there shouldnt be any issues.

If one had DP more and taken less loan to begin with, one will have no worries with this new system.

 

Thats why i say it does not benefit the rich.

In fact vice versa.

 

But if one has bought on 10yr loan low DP, sell also cannot recover enough to pay debt, dont even talk about DP to buy the next car. How leh? Die c--k stand lor. Continue to pay a higher price in driving the exact same car that you friend is driving.

 

Edited March 2, 2013 by Throttle2

[Adrianlim13]

yup, but downpayment is still ur money not a tax.

 

that why i feel the current owners whom bought cars with high COE are not exactly losing out alot due to the revised rules.

 

 

of course, those who no ready cash, roll credit.... will sweat la. Those with ready cash, coe crash ... crash la, change new car lor

 

so back to square one. LPPL . haha (meanwhile Government coffers increase and banks still make their money with increase rates)

 

 

[Adrianlim13]

The difference is that if COE is so low, dealers will raise prices or increase their margins.

It is not quite a dollar for dollar situation. Also base on an OMV $40k car, you wont get $25k after two years. The moment it gets driven out of showroom, immediately becomes $25k already.

 

The conti with an OMV of $40k and a COE of $20k then, will likely cost, $150k?

 

One also has to factor in the penalties of breaking the loan.

 

All in all , it is very simple.

If one is talking about normal car, like Camry, or C180, there shouldnt be any issues.

If one had DP more and taken less loan to begin with, one will have no worries with this new system.

 

Thats why i say it does not benefit the rich.

In fact vice versa.

 

But if one has bought on 10yr loan low DP, sell also cannot recover enough to pay debt, dont even talk about DP to buy the next car. How leh? Die c--k stand lor. Continue to pay a higher price in driving the exact same car that you friend is driving.

 

 

Hmm... if omv 40k and coe 20.. most likely about 120k-130k. i rem the 320i was going for that rate when coe was low. (i could be wrong).

 

Nowadays with everything so transparent, dealers will not mark up that much and expect brisk sales ya. but i agree, there are always suckers.

 

usually rule of thumb (told to me by gurus ) is to take omv X 2.34 + coe and markup = SP of car .

 

[Camrysfa]

hmm...

 

let say a conti car cost 200k omv 40k coe 90k end of 2 years,

 

coe rebate - 72k , omv - 30k (75% issit) body say 25k = 127k (loss- 200-127 = 73k)

 

so lets say coe crash from 90k to 10k,20k (drop of 70k)

 

wouldn't the replacement car net off ? hence my thinking is no difference .

 

 

However, if COE drops slightly from 90k to 60k-70k ... then not much difference but then again new ARF tax will again net it off.

 

i am no expert.. just thinking about the whole system .

 

 

wah.....like a IQ Test.

The owner of the 200K car will loose 73K if he scraps his car.

 

No use to him if a new car cost $1 at that time--- he still lost 73K in 2 years of owing the car.

[Duckduck]

apaprently vw still offering 100% finance... duno when mas will close this lobang...

 

mazda n citroen also lower price liao.

[Voodooman]

apaprently vw still offering 100% finance... duno when mas will close this lobang...

 

mazda n citroen also lower price liao.

 

News report says MAS advising banks lending to such finance companies to follow the new guidelines, if they refused, banks have to stop the business?

Edited March 2, 2013 by Voodooman

[Angcheek]

wah.....like a IQ Test.

The owner of the 200K car will loose 73K if he scraps his car.

 

No use to him if a new car cost $1 at that time--- he still lost 73K in 2 years of owing the car.

 

I think He is comparing the difference then and now one got to pay as a whole.

I dont think anyone will go scrap a 2 yr car 开玩笑 :-)

Edited March 2, 2013 by Angcheek

[Duckduck]

News report says MAS advising bank lending to VW finance arm to follow the new guidelines, if VW refused, banks have to stop the business?

 

from wat i know, most of the ADs have been making $$ based on finance... without finance their revenue drop alot... desperate times for all dealers liao, they wont close shop but theyll take a big profit going forward...

 

duno abt bank stop their biz... im sure theyll maximize lobang get charged or warning by mas lol

[Wt_know]

car dealer of coz must make profit gao gao la ... else ... who feed thier mouth

 

1. sell car to you = profit 1

2. finances ie: loan interest, commission = profit 2

3. trade in your car, resell = profit 3

 

huat ah !!!

 

from wat i know, most of the ADs have been making $$ based on finance... without finance their revenue drop alot... desperate times for all dealers liao, they wont close shop but theyll take a big profit going forward...

 

duno abt bank stop their biz... im sure theyll maximize lobang get charged or warning by mas lol

 

[Voodooman]

from wat i know, most of the ADs have been making $$ based on finance... without finance their revenue drop alot... desperate times for all dealers liao, they wont close shop but theyll take a big profit going forward...

 

duno abt bank stop their biz... im sure theyll maximize lobang get charged or warning by mas lol

 

We will know in another 1-2 weeks if such indirect measures will work, but banks would be foolish to piss off their master, regulator, for businesses from a few auto finance companies.

[Throttle2]

Hmm... if omv 40k and coe 20.. most likely about 120k-130k. i rem the 320i was going for that rate when coe was low. (i could be wrong).

 

Nowadays with everything so transparent, dealers will not mark up that much and expect brisk sales ya. but i agree, there are always suckers.

 

usually rule of thumb (told to me by gurus ) is to take omv X 2.34 + coe and markup = SP of car .

 

Yes not incorrect.

Debatable but not incorrect.

 

Thats why i advocate huge DP and short loan or fullcash.

People like me always walk away unscathed either ways.

 

Not about rich or poor.

About choosing a car suitable for yourself and financial position.

 

Cheers

[Duckduck]

About choosing a car suitable for yourself and financial position.

 

Cheers

 

so when r u gonna strike? heheheh

[Erykool]

Actually why all of u so confident Coe will drop a lot?

1) sg got many richie rich la...

2) even if drop, many will Chong in to buy then next bidding also go back up..

3) if really drop, might not be so easy to change car also as many will not get good price for trade in... End up also need to fork out $$ to top up current full settlement...

 

So Coe not necessary will drop a lot.. Maybe drop a little bit only la...

[Throttle2]

so when r u gonna strike? heheheh

 

Bro as mentioned, i dont need more than one car and i am already driving my childhood dream.

So i probably wont be buying.

Although a nasty though of swopping to an M3 did cross my mind awhile ago.

[Duckduck]

Actually why all of u so confident Coe will drop a lot?

1) sg got many richie rich la...

2) even if drop, many will Chong in to buy then next bidding also go back up..

3) if really drop, might not be so easy to change car also as many will not get good price for trade in... End up also need to fork out $$ to top up current full settlement...

 

So Coe not necessary will drop a lot.. Maybe drop a little bit only la...

 

there are more sales done w high loans than u thk, so for awhile buyers have to get used to forking cash. now is up to salesmen to accept less finance $$ n work on increaseing gross profit. IMO the cash buyers cannot replace the high loans volume, so its a tricky situation going forward... main benefactor will b pple buying used cars imo...