How low will COE go?

[Leepee]

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.

Ans: that is true, higher loan higher commissions earned by SE. But the if car buyers is not willing to pay for the high monthly installment, then how will the AD set a high selling price? It's still the buyers fault for willingly to borrow so much.

 

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.

Ans:not true! All will still sell car with your own COE. last minute is strategy...as most AD want to get the COE at the CHEAPER price to maximize their profits! So all show handat the very last minute, think about it. Please substantiate the 70+% if you really want to be credible in your appeal.

 

3: Why this practice is against the law?

This March, Microsoft had been fined a whopping

Edited March 10, 2013 by Leepee

[Wt_know]

in the world of capitalism ... this is what happening

one has to learn to accept the fact ... either you screw other or let other screw you

 

 

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

Edited March 10, 2013 by Wt_know

[Galantspeedz]

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.

 

have you ever ask for list price without COE before?

 

[Yeshe]

Volvo S60, from S$139,999, last month price $219,000, drop 61,000, but this price could be OPC, if so add 17000. it is 158,888, drop 44,000

 

the price is not OPC, from what i know, it is subsidized as these cars ( s60 and s80 ) will be used for an officical event then resell to buyers, hence the lowered price

[Pisces69]

and this is what govt don't want to see

 

We all know this. Its prob one reason gharmen say ty cutting coe quantity. Ty know fr sure this wil cause e price to shoot up.

 

[Yeshe]

have you ever ask for list price without COE before?

 

yes i have, they just give u the normal selling price minus the COE rebate price they are using.

[Pisces69]

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

 

 

Well the cycle has gone round a few times already.

 

COE up......coe down......coe up.......coe down.

 

Just like stock market.

[Yeshe]

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

 

i have done self bid before, the only challenge is to get the AD to quote a reasonable price for non COE car. so far major ADs dun give a damn if you wanna self bid

[Pisces69]

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

 

 

 

That law only fr show n non-gharmen related companies.

 

It wun b used against companies that make money fr gharmen.

 

Just look at e oil cartel here. So well protected.

[Yeshe]

Very likely. Thats what happen when coe crash.

 

Ty can get a new car fr e scrap value of their 2-3 yr old car without paying anything.

 

they cant scrap when some have 10yrs 100% loan

[Pisces69]

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.

 

 

Ya chut pattern. Thats e simple truth abt spore.

 

I wud also like to see pple pay exactly how much ty bid fr their coe.

 

Then we see if got pple bid crazy high prices. This also indirectly keep pushing coe prices up.

[Wt_know]

won't repeat 2009 ... now economy is all time high

dow breaks 14,000 points and sti breaks 3,200 points and property all time high ... everyone is sibei high now ... only govt says dark cloud forming

 

anyone know if the crash to times of lowest COE in 1st Quarter of 2009 was due to any reason ??

Consecutive period of bids below $10K.

 

Lowest PQP at $3864 only for 10 years - based on historical data

Edited March 10, 2013 by Wt_know

[Albeniz]

won't repeat 2009 ... now economy is all time high

dow breaks 14,000 points and sti breaks 3,200 points and property all time high ... everyone is sibei high now ... only govt says dark cloud forming

 

Deja vu. Exactly the same situation just before economy tsunami struck previously.

 

Government must be aware of things going to happen, otherwise won't suddenly implementing this type of drastic measure to prevent people from over-leveraging and ended up debts become bad when the fateful economic disaster strikes again.

 

When the tide subsides, we will know who have been swimming naked all these while.

 

[Viceroymenthol]

won't repeat 2009 ... now economy is all time high

dow breaks 14,000 points and sti breaks 3,200 points and property all time high ... everyone is sibei high now ... only govt says dark cloud forming

 

Our govt is right! This is the time to go short..... When there is irrational exuberance....

[Wt_know]

yeah, i heard that too for property in 2010 when property was all time high and still cheonging now

 

Our govt is right! This is the time to go short..... When there is irrational exuberance....

Edited March 10, 2013 by Wt_know

[Wongkxsgate]

how did the bidding goes??

[Detach8]

how did the bidding goes??

What do you think.

[Kangadrool]

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.

 

You can self-import the exact model/spec if you can find that in the UK/right hand drive market. A bit leg work, but may be worth the effort for saving 20K.