How low will COE go?

[Airconlin]

Here is a draft; I intend to send it to MPs and relevant authorities, media. I would like to seek your comments to improve it.

 

Bundling COE Price with Vehicle Cost is Against the Law

 

1: Why do some dealers push COE premiums as high as possible?

When the vehicle quota is fixed, dealers can only make more profits from commissions of loan and insurance, the higher COE premium brings more commissions. When COE is $90,000+, the loan interest can be more than the profit of selling vehicles.

In the other hand, the higher COE creates a huge financial barrier for small dealers, brings unfair advantage to a few major dealers.

 

2: How major dealers manipulate COE bidding?

It is well-known that most of big dealers are unwilling to deal with consumers who have their own COEs. Such practice gives a few dealers controlling power over 70+% of COE. During the bidding process, the COE prices are always flat during most of the bidding process, they only skyrocket in the last 30 minutes or so before closing, this is due to a handful of big dealers pushing the prices to sky-high.

 

3: Why this practice is against the law?

This March, Microsoft had been fined a whopping

[Galantspeedz]

my advice, do a poll and see how many know how to self bid coe first..and what are the requirements .

[Chucky2007]

I ask KM how much they selling their 2.4 Odyssey with 28k Omv without COe now if I'm getting my own Coe. They say 120k+ near 130k..

 

In 2007-2010, a Odesseey with 15-20k Coe was selling 90k+...

 

The AD has built in much higher profit margin now.. quite disgusted with their 20k+ profit..

 

Ill just wait till they all bleed and need to reduce price.

[Airconlin]

my advice, do a poll and see how many know how to self bid coe first..and what are the requirements .

 

I don't think the poll make any sense at this point, when you bid a COE and cannot get a popular car, why do you take the trouble?

If there is price different, then many consumer will choose to bid COE by themselves.

 

[Elmo]

I ask KM how much they selling their 2.4 Odyssey with 28k Omv without COe now if I'm getting my own Coe. They say 120k+ near 130k..

 

In 2007-2010, a Odesseey with 15-20k Coe was selling 90k+...

 

The AD has built in much higher profit margin now.. quite disgusted with their 20k+ profit..

 

Ill just wait till they all bleed and need to reduce price.

KM sell single digit number of cars for so many months liao.

Now got chance to carrot will definitely try.

If Honda continues to churn out cars that look like the current Civic, low COE low yen also cannot save them.

[Airconlin]

I ask KM how much they selling their 2.4 Odyssey with 28k Omv without COe now if I'm getting my own Coe. They say 120k+ near 130k..

 

In 2007-2010, a Odesseey with 15-20k Coe was selling 90k+...

 

The AD has built in much higher profit margin now.. quite disgusted with their 20k+ profit..

 

Ill just wait till they all bleed and need to reduce price.

 

They should be fined millions of dollars for such anti-competition practice.

[Pisces69]

50k is already ex.

There is a time hyundai avante only cos 36k nia.

I miss out that chance than it shoot up.

 

 

2006-7 optra abt $60k only. Abt same as altis.

 

That time can see china cars around. QQ also got pple buy. Really cheap.

[Pisces69]

Only those who paid certain substantial amount of down payment can do that. .. those with zero down and loan 10yrs, don't think they will scrap it...

 

 

If e coe goes high enough...still can scrap it coe drops to very low.

Or at least change to a new car n top-up a bit only.

 

Then their yearly depreciation n loan interest drop a very big amt. This is e time we see our 2-3 year old cars being scrapped n re-exported.

[Chucky2007]

They should be fined millions of dollars for such anti-competition practice.

At this current pricing with their high profit, I would most likely approach PI for jap models since servicing is nothing too complicating for most workshop. Bye bye KM or Borneo.. if ever for Toyota and Honda..

[Pisces69]

I ask KM how much they selling their 2.4 Odyssey with 28k Omv without COe now if I'm getting my own Coe. They say 120k+ near 130k..

 

In 2007-2010, a Odesseey with 15-20k Coe was selling 90k+...

 

The AD has built in much higher profit margin now.. quite disgusted with their 20k+ profit..

 

Ill just wait till they all bleed and need to reduce price.

 

 

This confirms that these dealers do not encourage customers to get their own coe.

 

And e only reason is cos dealers make more money when ty sell cars wh coe.

 

This defeats e purpose of having coe. Might as well let dealers set a price n ty give a cut of their profits to gharmen as a tax.

 

 

 

[Wt_know]

and this is what govt don't want to see

 

Yes. This is something gharmen sud look into.

 

Dealer cannot bid fr buyers. This wil lower coe prices even lower n cud b gharmen know this so still allow dealers to put in high bids n bundle loan fr car+coe together.

 

If buyers need to pay cash fr coe...we might see <$10k coe become e norm.

 

[Wt_know]

cc a copy to LBW since she like to talk about car industry and how she want to save the used car ceo with 235 cars and 50 staff and probably the ceo is a hundred-millionaires

 

anyway, look at 2013 budget ... many goodies right ... where does money come from?

no need rocket scientist can easily figure out a huge contribution comes from property tax and car tax including coe

 

Here is a draft; I intend to send it to MPs and relevant authorities, media. I would like to seek your comments to improve it.

 

Bundling COE Price with Vehicle Cost is Against the Law

 

1: Why do some dealers push COE premiums as high as possible?

When the vehicle quota is fixed, dealers can only make more profits from commissions of loan and insurance, the higher COE premium brings more commissions. When COE is $90,000+, the loan interest can be more than the profit of selling vehicles.

In the other hand, the higher COE creates a huge financial barrier for small dealers, brings unfair advantage to a few major dealers.

 

2: How major dealers manipulate COE bidding?

It is well-known that most of big dealers are unwilling to deal with consumers who have their own COEs. Such practice gives a few dealers controlling power over 70+% of COE. During the bidding process, the COE prices are always flat during most of the bidding process, they only skyrocket in the last 30 minutes or so before closing, this is due to a handful of big dealers pushing the prices to sky-high.

 

3: Why this practice is against the law?

This March, Microsoft had been fined a whopping €561 million by the European Union, for bundling IE browser with Windows operation system.

The practice of bundling COE with vehicle cost has lasted two decades. Since 2004, Singapore has enacted the Competition Act. Dealers who bundle COE with vehicle cost have been acting against this law since 2004.

 

4: What can authorities do to stop this practice?

By analysing vehicle sales since 2004, we can find out the percentage of COEs bid by consumers, and the percentage of each major dealer that sell vehicles to consumers who have their own COEs. By comparing these two percentages, we can identify dealers that refuse to sell vehicle to consumers with their own COEs. The main COE premium manipulator should be dealt with according to the law.

Another good idea would be for CCS to make it compulsory for dealers to quote vehicle prices without COEs;

MAS could ask banks to separate COE loan package from car loan, because COE premium has no depreciation, it is ridiculous to apply the same interest rates on COE and vehicle, does not give consumers a choice.

LTA could give 3% rebate for COEs bid by consumers themselves.

There are 600,000+ cars on the road, thus the tightening of the COE quota is a good move. With more than 40% of Singaporean families owning a car, they are willing to pay a high but reasonable price for COE. However a few greedy dealers are forcing Singaporeans to pay much more, so that they can extract more profits, and also prevent small competitors from entering the vehicle market.

Edited March 10, 2013 by Wt_know

[Eaton]

We can only look back but don't put hope..

Singapore is a weird place. U end up paying more when there is conpetition

[Wt_know]

and the irony, spore got this tok kong anti-competition law ...

 

Singapore is a weird place. U end up paying more when there is conpetition

 

[Blackyv]

and the irony, spore got this tok kong anti-competition law ...

 

As usual, anti competition law only apply to chicken rice stall, tour bus company, etc .. It's never applicable to those Giants Co. ...

[Leepee]

I suppose if you ask a theoretical question you will get the standard cover backside answer.

Wait till you got you own COE on Wednesday, then flash it to the same SE and ask the same question again.

It might be a different and lower figure then.

 

 

I ask KM how much they selling their 2.4 Odyssey with 28k Omv without COe now if I'm getting my own Coe. They say 120k+ near 130k..

 

In 2007-2010, a Odesseey with 15-20k Coe was selling 90k+...

 

The AD has built in much higher profit margin now.. quite disgusted with their 20k+ profit..

 

Ill just wait till they all bleed and need to reduce price.

 

[Simplecar]

This confirms that these dealers do not encourage customers to get their own coe.

 

And e only reason is cos dealers make more money when ty sell cars wh coe.

 

This defeats e purpose of having coe. Might as well let dealers set a price n ty give a cut of their profits to gharmen as a tax.

Yes, that's my observation too.

Yes, enforce a law that cars be priced without COE. But if they also price with COE, they could still 'chuk' pattern.

[Eaton]

I suppose if you ask a theoretical question you will get the standard cover backside answer.

Wait till you got you own COE on Wednesday, then flash it to the same SE and ask the same question again.

It might be a different and lower figure then.

This place is too profit driven at the expenses of poor Singaporean