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AD bidding practice is dubious - someone pls explain?

Hamustar

By Hamustar,
in General Car Discussion

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Piyopico

Piyopico

Supercharged

AD not only seek to maximize profits from COE, they also sabo each other by bidding up a particular category.

 

When corollas were priced at less than 10% margin, the particular AD open up to big time sabo by other ADs. Pick up a few hundred orders actually die faster. Just an increase of a few grand in COE their profit margin gone in 3 mins plus lose money on guaranteed package. Biggest player but still got turned over..........

 

So dun be naive. Your AD is not your friendly neighborhood spiderman that comes to your rescue and deliver a ride. They kill other superheroes too.

 

😁

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Angcheek

Angcheek

Hypersonic
(edited)

AD not only seek to maximize profits from COE, they also sabo each other by bidding up a particular category.

 

When corollas were priced at less than 10% margin, the particular AD open up to big time sabo by other ADs. Pick up a few hundred orders actually die faster. Just an increase of a few grand in COE their profit margin gone in 3 mins plus lose money on guaranteed package. Biggest player but still got turned over..........

 

So dun be naive. Your AD is not your friendly neighborhood spiderman that comes to your rescue and deliver a ride. They kill other superheroes too.

 

😁

 

yes ..... they are the JOKERS ! You go buy their car , they smile big big

 

dbeb38a4c40de103e380072544c3df48.jpg

Edited by Angcheek
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zerobim08

zerobim08

4th Gear
(edited)

There is no conspiracy. The answer always lies in just one word, the most important word in business =>profit. Always check the profit margin of the AD given the price you paid.

 

If the profit is low say <$15K (compare to AD historical or industry ave), then the COE bid will be within narrow range (as the AD is taking a gamble with your money anticipating COE to ease like what happened during CNY). So in this case you are better off getting a guaranteed package if you are serious about getting a car. Conversely if profit margin is high, then chances of securing a COE is higher for non-guaranteed package. So don't waste money on guaranteed package. Like any other things, there is no super fantastic deals when buying a car in general. But occasionally there may be depending on how well you (or your AD) fare in the casino called COE.

 

p.s. you can use the link below to get an idea on the typical "actual" profit margin for different ADs (or you can get the spreadsheet from onemotoring website)

Edited by zerobim08
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Eyke

Eyke

Supercharged
(edited)

My question is if round 1 AD took the view that COE prices is going to soften further and did not bid for you (which would have entitled you to some rebate) but COE subsequently rose and they secured the COE for you at higher level, you just suck thumb and console yourself you got an expensive COE instead of 5k cash discount???

 

ah but then?

 

once you signed (whether guaranteed or not), you will pray for COE to either shoot high high (so you get more paper-value) OR crash below your rebate level so that you will get cash back.

 

if not happy, then either bid COE for yourself then go car shopping / self-import,

or find an AD willing to bid COE at the price you state.

doing that will only mean lesser revenue for the garment.

what u think?

 

no leh, Gahment say with pay-as-you-bid system we'll end up paying more wor...

 

but i not scholar so i dun understand their logic...

Edited by Eyke
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Coltplussport

Coltplussport

Turbocharged

meanwhile what do AD do with the deposit while we await the bids? they are free to use the cash?

They can just do what all businesses do with deposit collected. Think you should worry more for PI instead.

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Wt_know

Wt_know

Supersonic
(edited)

yeah better worry what PI do with the deposit ... can go MBS, RWS, BPL ... lol

for AD the money goes to the company and not the agent or SE who sold you the car

 

They can just do what all businesses do with deposit collected. Think you should worry more for PI instead.

Edited by Wt_know
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Voodooman

Voodooman

Supersonic

 

ah but then?

 

once you signed (whether guaranteed or not), you will pray for COE to either shoot high high (so you get more paper-value) OR crash below your rebate level so that you will get cash back.

 

if not happy, then either bid COE for yourself then go car shopping / self-import,

or find an AD willing to bid COE at the price you state.

 

 

Thanks for telling me the obvious on the self bid / self import part.

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Limwsv

Limwsv

5th Gear

Thanks for telling me the obvious on the self bid / self import part.

 

Anyone for a mass order? I have checked out the Japanese sites for ordering export cars from Japan and have done some calculations. Unfortunately, doing self-import don't result in much differences from market price. However, with volume, I think the resulting savings may be better.

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Voodooman

Voodooman

Supersonic

 

Anyone for a mass order? I have checked out the Japanese sites for ordering export cars from Japan and have done some calculations. Unfortunately, doing self-import don't result in much differences from market price. However, with volume, I think the resulting savings may be better.

Think self import works for cars whereby AD's margin are in excess of 50k, difficult to beat Borneo Motor with their 10-15k margin per car.

 

But if you do it once, maybe can go into PI business next time. haha...

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Eyke

Eyke

Supercharged

Thanks for telling me the obvious on the self bid / self import part.

if u didn't spout so much confusing nonsense, i wun need to explain the obvious.

 

is it ur England so bad or just trolling? anyway, wun be wasting my keystrokes anymore.

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Limwsv

Limwsv

5th Gear

Think self import works for cars whereby AD's margin are in excess of 50k, difficult to beat Borneo Motor with their 10-15k margin per car.

 

But if you do it once, maybe can go into PI business next time. haha...

 

I did the calculations base on the Prius Plus, which only 1 PI was bringing in at that time. It would be this kind of cars that made sense in doing a self-import, but still could not outdo pi.

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Raptor22

Raptor22

2nd Gear

 

I did the calculations base on the Prius Plus, which only 1 PI was bringing in at that time. It would be this kind of cars that made sense in doing a self-import, but still could not outdo pi.

 

Where do you go for warranty?

Hybrid batts not cheap.

 

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Hydrocarbon

Hydrocarbon

Turbocharged

no leh, Gahment say with pay-as-you-bid system we'll end up paying more wor...

 

but i not scholar so i dun understand their logic...

 

I also don't understand this logic.

 

Didn't LKY say "What's wrong with collecting more money?" If Pay-As-You-Bid results in more revenue for the Govt, isn't that good for all of us as Singaporeans? Desperate pay more.. Higher paper value also ah, then next time car can sell more.. (Maybe)..

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