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COE Bidding 2nd - May 2013


Steptronic
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What is your take?  

71 members have voted

  1. 1. Final result this time will be

    • Cat A > Cat B
      48
    • Cat B > Cat A
      12
    • Leave me alone!
      11


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Turbocharged

COE remains high despite the loan curbs for several reasons:

 

1. Luxury cars like BMW, Mercedes, Volvo, Audi are having good sales for Cat A cars

2. Buyers shun Cat B cars due to additional tax above $20K OMV

3. More than half of the poplation are PRs and foreigners. These people are cash richer. See how these people purchase Sentosa Cove properties and other properties with cold hard cash. Rising car prices is no issue to them

4. Public transport infrastructure unable to cope with rising population. People end up getting cars instead of taking public transport

5.

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Price of negative assets will only fall when the economy is down.....

 

 

???

 

Since when is a car an asset?!!? ...

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???

 

Since when is a car an asset?!!? ...

 

well..... "asset" is a glorified word in Singapore.

 

Our Age Dee Bee flat is also not an asset, but glorified as "appreciating asset". It's actually a rental lease without strata title.

 

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Now coming back to Borneo.. which is a subsidiary of Inchscape, which is a lusted company and also GLC linked.. their sales forecast projection dip is largely due to stiff competion from VW, Merc which they are eating into your market share as Toyota are really pale when compared to the conti. And also bec on the new rile of 40/50% downpayment which will see consumers not buying if a coe of 62k resulting in a altis selling 120k and downpayment becomes 50k.. for buyers of B&B car, coming our with 50k and take loan 70k for 5 years, might as well don't buy or buy a 5 year old used car and full pay with 50k. So they will also need Coe to cone down for their sales to move. Their bad projection is based on high Coe of 60+k plus new loan restrictions. Therefore with all dealers facing same dilemma, the solution will be for Coe price to relax, which LTA has the expiring Coe on hand and balls are in their court.

 

Good analysis, BB brand still not selling well after the latest CM as the luxury marques still dominate the market despite higher taxes on them. The govt is trying to make the system more "equitable" as 2016 nears, if true, Borneo should benefit in the long run, if I am PML or C&C, I would be more worried about my sales in 2014. Expect more luxury car taxes and less COE for higher end marques.

 

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Turbocharged

Borneo Motors miscalculated the COE mkt after the loan restrictions were implemented in Feb. They expected COE prices to drop significantly and came up with the promo for Altis 1.6 Elegance promo at $97K in early March. Now into the final 6th bid, many Altis buyers failed to secure COE.

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(edited)

Borneo Motors miscalculated the COE mkt after the loan restrictions were implemented in Feb. They expected COE prices to drop significantly and came up with the promo for Altis 1.6 Elegance promo at $97K in early March. Now into the final 6th bid, many Altis buyers failed to secure COE.

 

They should just bring in MIJ Corolla type models to compete with better built contis. It's a joke that they are trying to sell MIT 4AT Altis at conti price without the better quality finishings.

Edited by Kangadrool
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Neutral Newbie
(edited)

COE shall never go below the 50k. Govt already knows tactics. Either cut quota supply or curb the loans tighter. Now that COE is rising my guess is that LTA will cut supply soon to prevent breaking the 70-80k barrier if not they lose face leh. The loan curbs din work.

 

We shd not place too much rationality in buying a car now in Spore. It will be countered by govt interventions by the time we decide to take the leap.

 

I secured my COE this round. I topped up no doubt. My SE did say the AD wrong pricing strategy. But if my pocket can take it I see no reason why I shd hesitate n wait for a better price. It's not abt atas thinking or what. My car is a simple bread n butter jap car that will probably last me a good 6-7 yrs. I took the 5 yr loan anyway. I chose jap cuz I do not want to be laden with reliability issues. I also feel it forces me to rethink abt my financial commitments. If can then leap. If not, dont even need to wait. Just drive on.

Edited by Pandaeyes
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They should just bring in MIJ Corolla type models to compete with better built contis. It's a joke that they are trying to sell MIT 4AT Altis at conti price without the better quality finishings.

 

That is so true. Stripped down MIT gives very good profit margin, as good as Conti. Conti comes full factory fitted and are usually loaded with features. MIT Jap comes in bare bone to avoid tax. Conti offers u a wide range of cars. While BM is keeping inventory simple by offering a few models only. If possible, BM will just sell 1 model Corolla, in one color, metallic grey.

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COE shall never go below the 50k. Govt already knows tactics. Either cut quota supply or curb the loans tighter. Now that COE is rising my guess is that LTA will cut supply soon to prevent breaking the 70-80k barrier if not they lose face leh. The loan curbs din work.

 

 

If COE supply cut, then it will hit $100K again.

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COE shall never go below the 50k. Govt already knows tactics. Either cut quota supply or curb the loans tighter. Now that COE is rising my guess is that LTA will cut supply soon to prevent breaking the 70-80k barrier if not they lose face leh. The loan curbs din work.

 

 

If COE supply cut, then it will hit $100K again.

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Borneo Motors miscalculated the COE mkt after the loan restrictions were implemented in Feb. They expected COE prices to drop significantly and came up with the promo for Altis 1.6 Elegance promo at $97K in early March. Now into the final 6th bid, many Altis buyers failed to secure COE.

Its a business strategy and not a miscalculation... If I'm Borneo, I have collected say 1000 order and only 300 got sold, minly due to government intervention... What I will do is to use this collected but undeliverable sales to ToyotaJapan... This will prevent losing dealership, and better chips for further price negotiation or gain additiional marketing funding to support the challenging market.

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COE shall never go below the 50k. Govt already knows tactics. Either cut quota supply or curb the loans tighter. Now that COE is rising my guess is that LTA will cut supply soon to prevent breaking the 70-80k barrier if not they lose face leh. The loan curbs din work.

 

We shd not place too much rationality in buying a car now in Spore. It will be countered by govt interventions by the time we decide to take the leap.

 

I secured my COE this round. I topped up no doubt. My SE did say the AD wrong pricing strategy. But if my pocket can take it I see no reason why I shd hesitate n wait for a better price. It's not abt atas thinking or what. My car is a simple bread n butter jap car that will probably last me a good 6-7 yrs. I took the 5 yr loan anyway. I chose jap cuz I do not want to be laden with reliability issues. I also feel it forces me to rethink abt my financial commitments. If can then leap. If not, dont even need to wait. Just drive on.

Congrars on your purchase and thank you for buying now and not later

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Neutral Newbie

Its a business strategy and not a miscalculation... If I'm Borneo, I have collected say 1000 order and only 300 got sold, minly due to government intervention... What I will do is to use this collected but undeliverable sales to ToyotaJapan... This will prevent losing dealership, and better chips for further price negotiation or gain additiional marketing funding to support the challenging market.

 

I agree. This to me seems like the truth. Borneo needs to demonstrate that they have orders on the pipeline to assure better negotiation in future.

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Turbocharged

Borneo Motors miscalculated the COE mkt after the loan restrictions were implemented in Feb. They expected COE prices to drop significantly and came up with the promo for Altis 1.6 Elegance promo at $97K in early March. Now into the final 6th bid, many Altis buyers failed to secure COE.

 

It is judgement day for Borneo on 5th June.......they have many orders they cannot stomach to pay the COE. I have been given notice to top-up :angry:

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Turbocharged

It is judgement day for Borneo on 5th June.......they have many orders they cannot stomach to pay the COE. I have been given notice to top-up :angry:

 

Not judgement day for Borneo but the buyer.. While other waiting to buy they continue to collect orders from other buyer who bought at higher price. They continue to sell while those earlier buyer continue to wait.

 

To any AD the margin is protected.. they will package it in such a way that regardless what.. the cost is passed to the buyer while protecting their margin.

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Turbocharged

Not judgement day for Borneo but the buyer.. While other waiting to buy they continue to collect orders from other buyer who bought at higher price. They continue to sell while those earlier buyer continue to wait.

 

To any AD the margin is protected.. they will package it in such a way that regardless what.. the cost is passed to the buyer while protecting their margin.

 

Maybe Toyota is a big seller and hence don't really care if the customer will not continue once the 6th bid fails without top-up. To me it is a bit irresponsible marketing.

 

in a way it is judgement day for Toyota on 5th Jun for the lot on the final 6th bid. It is fails, i am one who will not buy Toyota again. i have to ask myself what is so special abt the altis. I would feel better to give my humble $$ to a Nissan or Mazda seller who I feel are more flexible. I have asked Toyota since the 4th bid whether they willing to call it quits as I noticed the 10K gap in their margin is heading for failure. The answer is always - "the contract of 6 bids" has to be fulfiilled.

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