How low will COE go?

[Kar_lover]

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

 

For something to be "against the law" there must first be a law against it. From what i know there is no law that says dealers cannot bid COE.

 

And you're wrong to say dealers don't sell car without COE. They do. But most buyers don't have time to sit in front of computer screen to bid COE. And it is also not true that the big dealers all wait until towards the end of the exercise to put their bids. I know for a fact (cos i help my frens monitor their COEs being bidded by their ADs) that the ADs put in their bid early. They put a bid that they more or less know will not be exceeded (they sell so many cars where got time to one by one increase bid $1 at a time?). 2 recent examples, my fren bought golf 7 during launch, VW put in straight $90k++ (can't remember exact figure) at around 2.30pm. And another colleague bought a new 316i, PML also put in $90k++ bid at around 3pm. Those last minute ones more likely are smaller dealers - they have time to monitor market. The big dealers put high figure knowing that in the end they will pay the lowest qualifying price.

[Wt_know]

please please please tell me which AD sell car without coe that their price is "really" without coe

come on ... they will give you a price that tell you in the face to go FLY KITE

yeah, i got plenty of time sitting in front of the monitor to bid coe ...

 

yes, big AD put in their bid early in the morning like $90K-$95K as they already price in the selling price (nothing to lose) and they know they probably pay lesser.

that's why must change law that bid as you pay. you bid $100K, you pay $100k ....

big AD especially conti more or less control the coe as all of them will put in the bid like bao jiak which mean the whole bidding exercise is more or less pre-determine liao before the bidding exercise depends on which AD got more orders to fill or sales target to meet

 

one more thing, open cat should be reduce to less and lesser quota. all these big AD bid open cat and keep it for 6 months to sell their car. this does not represent the real demand for that month which coe bidded in category A and B

 

For something to be "against the law" there must first be a law against it. From what i know there is no law that says dealers cannot bid COE.

 

And you're wrong to say dealers don't sell car without COE. They do. But most buyers don't have time to sit in front of computer screen to bid COE. And it is also not true that the big dealers all wait until towards the end of the exercise to put their bids. I know for a fact (cos i help my frens monitor their COEs being bidded by their ADs) that the ADs put in their bid early. They put a bid that they more or less know will not be exceeded (they sell so many cars where got time to one by one increase bid $1 at a time?). 2 recent examples, my fren bought golf 7 during launch, VW put in straight $90k++ (can't remember exact figure) at around 2.30pm. And another colleague bought a new 316i, PML also put in $90k++ bid at around 3pm. Those last minute ones more likely are smaller dealers - they have time to monitor market. The big dealers put high figure knowing that in the end they will pay the lowest qualifying price.

Edited March 11, 2013 by Wt_know

[PorkChong]

lets see how LOW coe will go.my friend working at the star logo showroom one said after the 50-60% start.their visitors also drop 50-60%.so dont think drive star or propeller or olympic logo can afford 50-60% dp hor.

 

[Garyyeo72]

lets see how LOW coe will go.my friend working at the star logo showroom one said after the 50-60% start.their visitors also drop 50-60%.so dont think drive star or propeller or olympic logo can afford 50-60% dp hor.

 

 

Will this situation benefit the used car dealers?

But if COE will to plummet so much as to offset the additional ARF then new car cost could beat those used cars within 12mth old...shld have to wait and see how the bidding ends this week.

[HP_Lee]

exactly... it's like fresh grads complain they can't afford a new flat at Redhill..... of cos la, prime area if not enough salary try punggol or Boon Lay first can?

a lot of people also drive old cars, not just people who cannot afford

 

That's what the riches man in world "Warren B" and Facebook CEO says, a car is meant for transporting one from point A to B. The richest want to be modest, but the poorer want to show they are able to. Just see what those richest man drive. They understand what is the real word of depreciating assets. This is a real joke in Singapore [laugh]

[Pisces69]

For something to be "against the law" there must first be a law against it. From what i know there is no law that says dealers cannot bid COE.

 

And you're wrong to say dealers don't sell car without COE. They do. But most buyers don't have time to sit in front of computer screen to bid COE. And it is also not true that the big dealers all wait until towards the end of the exercise to put their bids. I know for a fact (cos i help my frens monitor their COEs being bidded by their ADs) that the ADs put in their bid early. They put a bid that they more or less know will not be exceeded (they sell so many cars where got time to one by one increase bid $1 at a time?). 2 recent examples, my fren bought golf 7 during launch, VW put in straight $90k++ (can't remember exact figure) at around 2.30pm. And another colleague bought a new 316i, PML also put in $90k++ bid at around 3pm. Those last minute ones more likely are smaller dealers - they have time to monitor market. The big dealers put high figure knowing that in the end they will pay the lowest qualifying price.

 

 

Yr last part still saying big dealers wil OVERBID coe cos ty expect to pay less.

 

This means ty r pushing up coe prices by doing this. Also bad.

 

Thats why pple sud pay exactly what ty bid. Then u see less of these unrealistic bids made.

[Pisces69]

That's what the riches man in world "Warren B" and Facebook CEO says, a car is meant for transporting one from point A to B. The richest want to be modest, but the poorer want to show they are able to. Just see what those richest man drive. They understand what is the real word of depreciating assets. This is a real joke in Singapore [laugh]

 

 

This means SG got many not rich but trying to show ty r rich.

 

Maybe thats why so many pple here over-stressed. N many go mad even.

 

[Pisces69]

Will this situation benefit the used car dealers?

But if COE will to plummet so much as to offset the additional ARF then new car cost could beat those used cars within 12mth old...shld have to wait and see how the bidding ends this week.

 

 

We hv gone tru this cycle a few times already.

 

Once not worth to buy 2nd hand cars...ty wil b scrapped fr their parf value n e car exported n sold overseas.

 

If price difference too low...many 2nd hand dealers wil close shop.

[Donut]

you should bold this line too

 

And it's no good saying it's the free market working because the COE market isn't free. It's created by government and determined completely by policy.

 

Add one more point:

 

It's the dealers who are bidding and pushing the COE prices.... it's definitely not a COE free market

[HP_Lee]

This means SG got many not rich but trying to show ty r rich.

 

Maybe thats why so many pple here over-stressed. N many go mad even.

 

That's the main reason. Pushing oneself to maximum, and does allow relax. Those who are lowly geared, are the happiest people around.

[Galantspeedz]

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

 

now i dunno.. but few years back still got list price without COE but few thousand higher than (car price - COE).

 

 

[Pisces69]

That's the main reason. Pushing oneself to maximum, and does allow relax. Those who are lowly geared, are the happiest people around.

 

 

Not only push to e maximum. Some push over e maximum. U can tell who ty r.

 

Never smile. Always grumpy n their eyes glazed over. Many end up comitting suicide.

 

Ty wan face face face. Very insecure.

[Sdf4786k]

as long as there are still loop hole to get 7 year or 10 year loan, its quite difficult to see prices drop to low 10K figure.

 

Looking at the number of complaint from the harsh measure, I think the second hand car dealer still got quite a fair bit of play to off load the inventory, so its pretty stable state for at least a year.

 

 

[Kar_lover]

please please please tell me which AD sell car without coe that their price is "really" without coe

come on ... they will give you a price that tell you in the face to go FLY KITE

yeah, i got plenty of time sitting in front of the monitor to bid coe ...

 

yes, big AD put in their bid early in the morning like $90K-$95K as they already price in the selling price (nothing to lose) and they know they probably pay lesser.

that's why must change law that bid as you pay. you bid $100K, you pay $100k ....

big AD especially conti more or less control the coe as all of them will put in the bid like bao jiak which mean the whole bidding exercise is more or less pre-determine liao before the bidding exercise depends on which AD got more orders to fill or sales target to meet

 

one more thing, open cat should be reduce to less and lesser quota. all these big AD bid open cat and keep it for 6 months to sell their car. this does not represent the real demand for that month which coe bidded in category A and B

 

Their pricing strategy is their perogative.

 

Yes, I have always supported bid as you pay and yes i agree that should reduce open cat since it acts as a "supplementary Cat B" (although i have to say my previous Kia Koup was given open cat coe due to sudden increase in COE beyond C&C's budget to bid for Cat A.

 

 

[Nav14]

lets see how LOW coe will go.my friend working at the star logo showroom one said after the 50-60% start.their visitors also drop 50-60%.so dont think drive star or propeller or olympic logo can afford 50-60% dp hor.

Can afford but waiting for lower prices since everyone seems to be expecting it. They will be back in full force within 3 mths and chasing up prices again.

[Wt_know]

see $50K coe ... everyone will shout sibei cheap ah ... cheong

then $70K coe ... before you know it ... huat ah!

 

Can afford but waiting for lower prices since everyone seems to be expecting it. They will be back in full force within 3 mths and chasing up prices again.

 

[Throttle2]

see $50K coe ... everyone will shout sibei cheap ah ... cheong

then $70K coe ... before you know it ... huat ah!

 

 

Slightly different , i would say, bro

 

A certain band of people will be priced out, and its not becos of COE, that we already know.

The propensity to buy a new car will overall be lower even with COE at $50k instead of $90k.

 

I believe people will not be as rash as they were before.

Simply due to the DP. They can shout cheap but they got no money to down still.

 

 

[Leepee]

I concur.

I only hope gov wil stick to this 50% rule at least till year end or at least the August quota revision.

The longer this 50% rule stays the higher chance for COE to come down to very low level, to benefit most car buyers.

 

 

 

Slightly different , i would say, bro

 

A certain band of people will be priced out, and its not becos of COE, that we already know.

The propensity to buy a new car will overall be lower even with COE at $50k instead of $90k.

 

I believe people will not be as rash as they were before.

Simply due to the DP. They can shout cheap but they got no money to down still.