COE - May 2014

[Tohto]

I wonder why Singaporeans so quickly flock to car showrooms and book cars the moment COE came down sharply for one round. Actually in the mid to long term, premiums are likely to fall further. There is no need to really kan cheong.

 

Because they are kan cheong..

[drivinghazard]

 

Guaranteed COE means they will definitely get for you at the expense of less profit.

 

For academic discussion, let's say that the COE goes up to $1million. So confirm they will not bid the COE for you, even if it's guaranteed COE. Then how?

[Kangadrool]

probably there will be tiny prints in the contract that allow dealer to demand top up in certain circumstances and of course, if you refused, the contract would have void after 4 unsuccessful bids. Theorectically, if they put $1 bid under your name, it's also a bid.

 

 

For academic discussion, let's say that the COE goes up to $1million. So confirm they will not bid the COE for you, even if it's guaranteed COE. Then how?

 

[Lotr]

Actually should ban bidding by dealers on behalf of customers, simple reason is a conflict of interest. Dealers always want to maximise profit at the expense of customers

 

Also worth all customers going through dealers, dealers will have to much clout and can select which customers they want to bid for.

 

Ultimately, dealers might have to raise prices, but at least the process is more transparent

[Kar_lover]

I wonder why Singaporeans so quickly flock to car showrooms and book cars the moment COE came down sharply for one round. Actually in the mid to long term, premiums are likely to fall further. There is no need to really kan cheong.

 

Because they think/worry if they don't kan cheong, someone else will and the COE will still go up. As mentioned many times before, there is no way all buyers will act in one mind and all stay away top make COE drop further. COE bidding is every man/woman for himself/herself. Each potential buyer got their own set of circumstances that will make them bite at different COE levels, eg.those who able to pay more/more desperate for car will bite sooner. Those not able to pay or not so urgent will wait.

[Kar_lover]

Actually should ban bidding by dealers on behalf of customers, simple reason is a conflict of interest. Dealers always want to maximise profit at the expense of customers

 

Also worth all customers going through dealers, dealers will have to much clout and can select which customers they want to bid for.

 

Ultimately, dealers might have to raise prices, but at least the process is more transparent

 

Wah...how many times want to keep chanting this thing about buyer ownself bid?

 

Anyway dealers don't maximise profit by bidding up COE, in fact it is contrary - they make more profit if the COE is less. Their selling prices has a certain amount of buffer for COE built in so that they can bid more for COE if necessary. So if the COE is low this buffer becomes additional profit for them. If the COE is high then their profit is less - so why would they want to bid more? COE is not pocketed by AD you know? I will always remember when I went with my friend to buy her car. The previous COE exercise that time was at $80k but on the bidding day, the AD straightaway put down $92k. In the end her COE was around $80k+. So the AD still have a few thousand "extra" profit. If the COE had been $80k again, they would have had additional $12k of profit.

[Damienic]

 

Because they think/worry if they don't kan cheong, someone else will and the COE will still go up. As mentioned many times before, there is no way all buyers will act in one mind and all stay away top make COE drop further. COE bidding is every man/woman for himself/herself. Each potential buyer got their own set of circumstances that will make them bite at different COE levels, eg.those who able to pay more/more desperate for car will bite sooner. Those not able to pay or not so urgent will wait.

 

Actually I dare say most of those people who rushed to the showroom to buy is not because of urgent need but because they see it as an opportunity "make full use" of "favorable pricing" which they think seldom comes up and they feel is an opportunity not to be missed. Everytime this happens but history have shown in the past before that one can save even more if they willing to wait. I will wait until 4th Quarter 2014 or till 1st Quarter 2014 to see what happens.

[Kar_lover]

 

Actually I dare say most of those people who rushed to the showroom to buy is not because of urgent need but because they see it as an opportunity "make full use" of "favorable pricing" which they think seldom comes up and they feel is an opportunity not to be missed. Everytime this happens but history have shown in the past before that one can save even more if they willing to wait. I will wait until 4th Quarter 2014 or till 1st Quarter 2014 to see what happens.

 

Yep I am sure it's not urgent need either (did I say it was?). It is just that they have come to view $60k COE as being cheap and believe it will go up. I always say buying car in Singapore is like stock market. You buy when you believe price has bottomed out. So those who don't believe it will drop further will move in to buy while it is still low hence bidding up the COE, i.e. self-fulfilling prophecy.

 

In any case, the future may not be as bad as it seems. As each month passes, more and more cars are deregistered whilst the marginal owners (apologies for using this term) are no longer able to buy replacement cars (due to loan curbs) hence I still think it is quite possible, indeed probable, that we will see lower COE premiums in the next few quarters. So those with cars < 5yrs old, hold on to your horses!!

[Ktglfc]

 

Actually I dare say most of those people who rushed to the showroom to buy is not because of urgent need but because they see it as an opportunity "make full use" of "favorable pricing" which they think seldom comes up and they feel is an opportunity not to be missed. Everytime this happens but history have shown in the past before that one can save even more if they willing to wait. I will wait until 4th Quarter 2014 or till 1st Quarter 2014 to see what happens.

 

Thats our Singaporean's mentality, called KS.

 

As long as its lower than they perceived normal, then to them, its an opportunity not to be missed.

It will be Great Singapore Sale to them.

 

Thats no right or wrong, becos nobody can predict whether it will continue to go down or up, just like stock market.

As long as one has the money and is happy, by all means go ahead :)

[car138]

 

Wah...how many times want to keep chanting this thing about buyer ownself bid?

 

Anyway dealers don't maximise profit by bidding up COE, in fact it is contrary - they make more profit if the COE is less. Their selling prices has a certain amount of buffer for COE built in so that they can bid more for COE if necessary. So if the COE is low this buffer becomes additional profit for them. If the COE is high then their profit is less - so why would they want to bid more? COE is not pocketed by AD you know? I will always remember when I went with my friend to buy her car. The previous COE exercise that time was at $80k but on the bidding day, the AD straightaway put down $92k. In the end her COE was around $80k+. So the AD still have a few thousand "extra" profit. If the COE had been $80k again, they would have had additional $12k of profit.

 

Exactly, crowd is only back @ showroom because COE drops. Some keep saying that ADs (especially those high end cars) like to bid high COE and the COE will keep rising. Yes, provided that there are customers that are willingly to buy high COE car package. Keep saying that rich can afford to pay anything. In fact, sometimes the rich are the ones who are very calculative at the first place, that resulted them to be rich now.

 

Don't think it is the interest of ADs to bid COE as higher COE only erode their profits more. They only bid high COE when they want to close the deal asap at the expense of lower profit.

 

Why stop the car-buying party now by bidding high COE.. No way...

[Ronleo]

I wonder why Singaporeans so quickly flock to car showrooms and book cars the moment COE came down sharply for one round. Actually in the mid to long term, premiums are likely to fall further. There is no need to really kan cheong.

You can't stop Roberts from throwing away money right?

 

My fav Idiom: A fool and his money are soon parted!

[Civic6228]

 

For academic discussion, let's say that the COE goes up to $1million. So confirm they will not bid the COE for you, even if it's guaranteed COE. Then how?

 

Hmmmm, did you sign the contract ?

 

Why dont you go read up the fine print ? I am pretty sure the AD would have their arse covered.

[Kweechang]

 

Exactly, crowd is only back @ showroom because COE drops. Some keep saying that ADs (especially those high end cars) like to bid high COE and the COE will keep rising. Yes, provided that there are customers that are willingly to buy high COE car package. Keep saying that rich can afford to pay anything. In fact, sometimes the rich are the ones who are very calculative at the first place, that resulted them to be rich now.

 

Don't think it is the interest of ADs to bid COE as higher COE only erode their profits more. They only bid high COE when they want to close the deal asap at the expense of lower profit.

 

Why stop the car-buying party now by bidding high COE.. No way...

 

There is a small group of people who is willing to pay high COE, and change car every 1-2 years, they will keep COE high.

Edited May 21, 2014 by Kweechang

[drivinghazard]

 

Hmmmm, did you sign the contract ?

 

Why dont you go read up the fine print ? I am pretty sure the AD would have their arse covered.

 

No lah, it's not me who's who bought new car. I no $.

 

I'm just asking what will happen if the "Guaranteed COE" didn't happen. Just for discussion.

[Kar_lover]

 

There is a small group of people who is willing to pay high COE, and change car every 1-2 years, they will keep COE high.

 

A "small group" won't be able to keep COE high as the prevailing COE is the LOWEST successful bid.

[Kweechang]

 

A "small group" won't be able to keep COE high as the prevailing COE is the LOWEST successful bid.

 

This "small group" is enough to consume all the COE quota.

 

My small group is refer to 10% of SG population. Do your Maths and you will understand.

[Civic6228]

Huat arh ....

 

B4 3 pm ... CAT A already 40k ....

[yo2020]

 

Wah...how many times want to keep chanting this thing about buyer ownself bid?

 

Anyway dealers don't maximise profit by bidding up COE, in fact it is contrary - they make more profit if the COE is less. Their selling prices has a certain amount of buffer for COE built in so that they can bid more for COE if necessary. So if the COE is low this buffer becomes additional profit for them. If the COE is high then their profit is less - so why would they want to bid more? COE is not pocketed by AD you know? I will always remember when I went with my friend to buy her car. The previous COE exercise that time was at $80k but on the bidding day, the AD straightaway put down $92k. In the end her COE was around $80k+. So the AD still have a few thousand "extra" profit. If the COE had been $80k again, they would have had additional $12k of profit.

r u a car sales person? if not, y would u (as a buyer) so willingly to let the agt to earn "extra" or "additional" profit that u mentioned?

if buyers self-bid, the agt would only hv "fixed" profit n thus buyers pay less.

if 1 agt put high "fixed" profit, then buyers has option to go to another agt who offers more attractively.