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Rogersk8ter

Used Car dealers Feeling The Heat Liao!

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By

Tan Weizhen

-

6 hours 19 min ago

 

SINGAPORE

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Mr Kelvin Tan of Straits Euro Motors said his firm has suffered a loss of about S$50,000 in the past two weeks, as it slashed prices to draw customers.

 

 

 

 

 

 

50k slashed from those high margin rsp

Hahaha

 

 

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Thats business risk from the government, absolutely uncalled for. They should learn from central banks, drop hint, verbal intervention, deploy CM in phases and projected timeline.

 

Its like tell you that the season parking will be raised by 2-3 fold, those with cars will suck thumb.

 

If you are looking for a ride now, just go ahead a propose a price and see if dealer bite. I see some 6-7yrs cars still going at 15k above paper value.

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Thats business risk from the government, absolutely uncalled for. They should learn from central banks, drop hint, verbal intervention, deploy CM in phases and projected timeline.

 

Its like tell you that the season parking will be raised by 2-3 fold, those with cars will suck thumb.

 

If you are looking for a ride now, just go ahead a propose a price and see if dealer bite. I see some 6-7yrs cars still going at 15k above paper value.

 

15K above paper value is the dealers' asking price. So their purchase price for the used vehicles will be closed to paper value+body only.

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Though I take no joy in their predicament, they have to take the bad with the good.

 

Don't expect MAS to cut them some slack when they hardly give potential buyers' any quarters. It's just business.

 

Some are caught off guard with hoarding cOE, others are with inventories. So quite charm. Demand of preloved are in bad shape, unlike new where the supply is limited. But situation is still not that bad yet as COE is still high and the window of opportunity for 2nd hand dealers to escape is not closed yet. If MAS managed to close the loophole and COE continue to drop, then it may become too late to run. The only choice it to take some lost and export the car when there is no buyers.

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Mr Teh Han Sing, Managing Director of Chin Lian Seng Motor Trading, said the local banks have increased interest rates for used-car loans to 2.88 per cent, up from 2.28 per cent.

 

Some financing companies such as Hitachi Capital and Century Tokyo Leasing have raised it further to 3.28 per cent, Mr Wong said.

 

Mr Wong added:

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Mr Kelvin Tan of Straits Euro Motors said his firm has suffered a loss of about S$50,000 in the past two weeks, as it slashed prices to draw customers.

 

 

 

 

 

 

50k slashed from those high margin rsp

Hahaha

 

 

cannot believe this type comments. i think slashing is over exaggerated

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Banks increasing loan interest (formerly 1.88% to now as high as 3.28%) due to new regulation of max loan period down from 10yrs to 5yrs.

 

Isn't the reduction on loan period suppose to help cut down expenditure? Why is MAS not doing anything to stop bank from raising loan to make up for the shortened loan period?

 

MAS aim to cut loan period seems to be so flawed now.

 

Wrong, MAS aim to weed out those who could barely afford to service the loan. The $300-400++/mth buyers will be taken out of the demand equation. The interest after 3.28% after 60mths would not add much. half the loan period would.

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wonder why the need for 1000+ used car dealers, this trade need a tougher screening

 

 

When it is easy money and barrier to entry is low, the numbers grow, so during period of ever rising COE, more will join the trade. When COE is on downtrend and economy is bad as people don't change cars as often, the weaker players will leave.... just like property agents.

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When it is easy money and barrier to entry is low, the numbers grow, so during period of ever rising COE, more will join the trade. When COE is on downtrend and economy is bad as people don't change cars as often, the weaker players will leave.... just like property agents.

 

gd move since the no of FT is slashed....

LOL

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Wrong, MAS aim to weed out those who could barely afford to service the loan. The $300-400++/mth buyers will be taken out of the demand equation. The interest after 3.28% after 60mths would not add much. half the loan period would.

 

MAS has 'no' interest to weed any buyer, financial prudence is just a nice cover story. There is a direction to cap inflation. We hv rose to be abt the most expensive city in Asia, beating Beijing & Tokyo & all the way to Sydney, so paiseh lah. Lower income ppl also buay tahan liao and quite unhappy.

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I only know these few days quite warm, I also feeling the heat.

 

Where firesale? Prices still very high leh...

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Guys those ppl r just greedy and talking cocks. They do not deserv any pity, went to see a car few day ago, only asking 2k discount which I feel is a reasonable price for a 2006 30k car w 15k OMv and they ask me to fly a big kite. When I ask any room to talk further they say NO. And that car is stuck for 1 year with them alr.

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heartless used car dealer only wants $90K COE ... $100K COE best ...

to them $70K COE is considered fking cheap ... NB !!!

 

Mr Alex Wong, a manager at Hua Yang, said the firm would be shutting down two outlets next month. Pointing out how the falling COE prices have resulted in brisk sales for new cars, Mr Wong questioned the MAS policy which has seemingly hurt used-car dealers more. He said the company’s Turf City branch only sold two cars in the past fortnight.
Edited by Wt_know

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heartless used car dealer only wants $90K COE ... $100K COE best ...

to them $70K COE is considered fking cheap ... NB !!!

 

Mr Alex Wong, a manager at Hua Yang, said the firm would be shutting down two outlets next month. Pointing out how the falling COE prices have resulted in brisk sales for new cars, Mr Wong questioned the MAS policy which has seemingly hurt used-car dealers more. He said the company

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