How low will COE go?

[HP_Lee]

Add one more point:

 

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

 

Especially, those luxury models are eating into the CAT As. They have pretty thick margins to play with. I dun know, whether the gov, will changes this soon. Hopefully, they do that sooner.

[HP_Lee]

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.

 

The worrying part is, now we are heading to 6.9mil and more richest coming in. They will definitely want cars. I guessed the COE will drop in short term, because of the new ruling. But will revert back to high, if these new citizens and PRs buying up again.

[Leepee]

I also hope it will last at least till 2016 or longer...... But shanmugan(I think) has said the 50% measures is 'not permanent'.

 

I got the impression and feeling that Once the COE price dropped to reasonable level, and stay there for a few rounds, the authority may decide the COE is affordable now, and tweak the 50% to say 75%.

 

So those who can barely afford the 50% now, quickly save as much as possible within the next few months. Should Take advantage of the low COE pricing and make the DP for the car, before the rule gets changed again.

Edited March 11, 2013 by Leepee

[Pisces69]

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.

 

 

And many pple wil b feeling e pain when their expensive coe car value drop like a stone overnight n wil say never buy car again. Hahaha

 

 

Till after a few years n ty forget e pain n get itchy again when coe drop to cheap cheap.

 

And e cycle starts all over again. Hahaha.

[Wt_know]

this is the worrying part

i certainly hope govt not to play the devil advocate role like deciding $40K coe is "reasonable" level and then retract pattern and chut pattern anytime

 

I also hope it will last at least till 2016 or longer...... But shanmugan(I think) has said the 50% measures is 'not permanent'.

 

I got the impression and feeling that Once the COE price dropped to reasonable level, and stay there for a few rounds, the authority may decide the COE is affordable now, and tweak the 50% to say 75%.

 

So those who can barely afford the 50% now, quickly save as much as possible within the next few months. Should Take advantage of the low COE pricing and make the DP for the car, before the rule gets changed again.

 

[Pisces69]

Especially, those luxury models are eating into the CAT As. They have pretty thick margins to play with. I dun know, whether the gov, will changes this soon. Hopefully, they do that sooner.

 

 

If coe grouped according to omv instead of cc...it might solve problem somewhat.

[Pisces69]

Wouldnt make sense if they remove regulation so easily or quickly.

Leave it there for 7-8yrs at least.

Want to cut grass, better uproot.

Otherwise, half past six

 

 

We say like that but gharmen see coe drop to low level wil b crying cos ty losing millions of dollars.

[Topgan]

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

 

Yes and NO.

 

Over the weekend I checked with 3 popular AD.

1st AD said they dont sell car w/o COE.

2nd AD quoted but was easily 10k higher (in comparison to the car less coe price in 2006 to 08)

3rd AD quoted honestly (i.e close to car less coe price in 06 to 08)

 

 

[Leepee]

I always say....show the AD your self bid COE first....and then talk prices.

You will be surprised.

 

 

Yes and NO.

 

Over the weekend I checked with 3 popular AD.

1st AD said they dont sell car w/o COE.

2nd AD quoted but was easily 10k higher (in comparison to the car less coe price in 2006 to 08)

3rd AD quoted honestly (i.e close to car less coe price in 06 to 08)

Edited March 11, 2013 by Leepee

[Silklee]

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.

 

I paid a visit to Tan Chong on Sunday. According to them, they actually have more people coming to their showrooms since the announcement of the CM.

[Throttle2]

Best is the price of COE stay put , and then Govt say 50% dp is not good enough, must full settle then can buy.

 

Just like property CM, more and more if prices dont come off.

 

Yeah!

 

 

[HP_Lee]

If coe grouped according to omv instead of cc...it might solve problem somewhat.

 

Let's see, what wonders can they do.

[Pisces69]

I always say....show the AD your self bid COE first....and then talk prices.

You will be surprised.

 

Ya surprised how expensive it is to bid yr own coe. :angry:

[Pisces69]

Let's see, what wonders can they do.

 

 

Ya lets see. If ty cannot improve e system...maybe a few more OP voted in might push them to work harder.

 

Hahaha.

[HP_Lee]

Ya lets see. If ty cannot improve e system...maybe a few more OP voted in might push them to work harder.

 

Hahaha.

 

Yup.

[Camrysfa]

I paid a visit to Tan Chong on Sunday. According to them, they actually have more people coming to their showrooms since the announcement of the CM.

 

 

they may be telling the truth...

new car mkt revived.

used car mkt nose dived ( used car assoc again sent appeal to LTA, saying the used car mkt is dead )

not sure if im correct, classfied ads in ST has also dropped. today it is only 1 full page and half.

 

on the other hand could be just curiosity about the new slyphy. Nissan note and almera not doing well if i see correctly.

[Chucky2007]

I paid a visit to Tan Chong on Sunday. According to them, they actually have more people coming to their showrooms since the announcement of the CM.

Haha.. then good for them.

 

Borneo motor sales person says their customers all very prudent people and take little loan and they will not be affected.. but the facial expression on the sales person face tells me he is actually very worried...

[Kenopt2]

Something is wrong with COE quota calculation. I think LTA use special calculator which none of us has.

 

From new paper

Year COE

2001 67,158

2002 62,960

2003 81,259

2004 96,861

2005 109,376

2006 117,062

2007 106,710

2008 97.348

2009 68,862

2010 42,002

2011 28,270

2012 25,742 - up to Nov 2012

 

8 years ago, it was 100,000 and now it is around 27,000 and still dropping. As long as supply is low and demand is high, how low can the COE price go? The message is simple. No money, no car. Take public transport. How come COE quota movement is so drastic? I wonder whether LTA releases the calculation method. I am puzzled why the numbers can drop so drastically and we still on a car growth strategy.