Zeally 3rd Gear October 1, 2015 Share October 1, 2015 A rationale person will stop bid firmly at the max value but what happens when you stick to your target but fail to get COE after a few rounds? At the heat of the moment, a private bidder may decided to just top up 2k of his max bid of 50k, then 100 more, 200 more, 300 more because he is now invested. A simple example will be people who continue a relationship because they have already spent 10 years in it. A waste to let go. The key thing is you are bidding for yourself, you are invested and you may turn desperate if you are not disciplined enough. I am not saying it most definitely will happen but it will happen. For dealers, at least you know the COE rebate price openly and can predict their bidding price. Without it, who knows? And trust me on this. If dealers are banned from bidding, a group of entrepreneur will start to offer bidding servicing for car buyers. They will offer you additional service like monitoring of COE pricing, analysis of demand and supply and then maybe 6-bid guarantee packages, help you transact with car dealers to provide a fuss free car buying experience for a fee. Haha.. then these companies will offer COE + car package for people who are lazy to bid their own COE. In the end we kill one monster, create another monster. Can I clarify? I am not supportive nor disapproving dealer packaging coe and car together. I am just pointing out the conflict of interests here. Seriously if we are discussing possible means of bringing coe price down. Then the simplest solution is to pay your bidding price for your own COE. Mathematically proven to work. But when we do that, many ppl will flip table as well... so to sum up, just let market forces take care of supply and demand - if chut new pattern, then may have new problem. The new MOT has MRT as priority. Why would he want to make problem with cars? ↡ Advertisement Link to post Share on other sites More sharing options...
Pioneer 4th Gear October 1, 2015 Share October 1, 2015 Haha.. there is a conflict of interest no doubt. Can I clarify? I am not supportive nor disapproving dealer packaging coe and car together. I am just pointing out the conflict of interests here.Seriously if we are discussing possible means of bringing coe price down. Then the simplest solution is to pay your bidding price for your own COE. Mathematically proven to work. But when we do that, many ppl will flip table as well... so to sum up, just let market forces take care of supply and demand - if chut new pattern, then may have new problem. The new MOT has MRT as priority. Why would he want to make problem with cars? Link to post Share on other sites More sharing options...
edwin15 4th Gear October 1, 2015 Share October 1, 2015 Definition of Supernormal Profits. http://www.economicshelp.org/blog/3181/economics/supernormal-profits/ Cause of supernormal profit due to market where new suppliers cannot enter. No reasons for ADs and PIs to reduce their own margins to grab a limit slice of the market and introduce a price war. Okay. AD I agree that there are barriers to entry. But if really have supernormal profit like what I think then why are there not more PIs to cheapen the cars. Also other countries have the same AD system but margins are lower if you compare to OMV. So I have to think that this "supernormal profit" is a normal profit in our system. But what is there here in our system here that creates this? Link to post Share on other sites More sharing options...
Axela72 5th Gear October 1, 2015 Share October 1, 2015 If bank interest rate increase, does that meant the COE price will drop? ty An SE from Alphine just sent me this article. Link to post Share on other sites More sharing options...
Cosmicclaw 6th Gear October 1, 2015 Share October 1, 2015 If bank interest rate increase, does that meant the COE price will drop? ty The 0.5% increase in interest translates to additional interest of $300 per year, assuming a $60K loan.Doubt there is much impact on COEs. 2 Link to post Share on other sites More sharing options...
WoeiSongKeh 5th Gear October 1, 2015 Share October 1, 2015 If bank interest rate increase, does that meant the COE price will drop? ty There will be not much impact to those who are buying cars as it only affect abt $50 per mth extra 1 Link to post Share on other sites More sharing options...
Bioinformatics 3rd Gear October 2, 2015 Share October 2, 2015 You book a Hyundai? Tooyoota Link to post Share on other sites More sharing options...
Zeally 3rd Gear October 2, 2015 Share October 2, 2015 There will be not much impact to those who are buying cars as it only affect abt $50 per mth extra Yep. No visible effects in the short run. Link to post Share on other sites More sharing options...
Enye Hypersonic October 2, 2015 Share October 2, 2015 nowadays so many COE bullish posts, Limwsv will need to out mountain once again 2 Link to post Share on other sites More sharing options...
kmttan 4th Gear October 2, 2015 Share October 2, 2015 There will be not much impact to those who are buying cars as it only affect abt $50 per mth extra During the CEVS episode, people try to save $2.5K and sent the COE higher by $10K. $2.5K translates to $20/month. With $50/month, this may give people another reason to cheong... Interest rate was 1.88% in Feb, and 2.28% in June. It will be 2.78% in Oct/Nov. Next year, after Feb rate hike, will it hit 3.5%? Link to post Share on other sites More sharing options...
Rayleigh 6th Gear October 2, 2015 Share October 2, 2015 Tooyoota Good rate. Mine was 2.28 Link to post Share on other sites More sharing options...
Si4dr 5th Gear October 2, 2015 Share October 2, 2015 (edited) COE supply is controlled. So please don't tell me let market force decide COE price is fair. Edited October 2, 2015 by Si4dr 1 Link to post Share on other sites More sharing options...
Lucille 3rd Gear October 2, 2015 Share October 2, 2015 COE supply is controlled. So please don't tell me let market force decide COE price is fair. True. But demand is not. So, its essentially in consumer's hand. In a way, they dictate the price. The whole setup fair or not etc, that's another debate all together. Bottomline and on its own, market does decide the price. Link to post Share on other sites More sharing options...
Pioneer 4th Gear October 2, 2015 Share October 2, 2015 You are only partially correct. Supply is controlled but price is not. Price of COE has gone up and down, meaning there is elasticity in the price. COE supply is controlled. So please don't tell me let market force decide COE price is fair. 1 Link to post Share on other sites More sharing options...
yo2020 6th Gear October 2, 2015 Author Share October 2, 2015 COE supply is controlled. So please don't tell me let market force decide COE price is fair. COE supply is controlled, but it's not fully controlled by LTA. only abt 2% of COE supply for Cat A&B is determined by LTA's 0.25% growth policy. the rest of the 98% is frm dereg n to dereg/extend is up to car owners. 1 Link to post Share on other sites More sharing options...
dragonforce Clutched October 2, 2015 Share October 2, 2015 If I have booked a car, but my SE has yet to put in a COE bid to date, is my Maybank loan pegged at the former 2.28% or 2.78%? Link to post Share on other sites More sharing options...
Limwsv 5th Gear October 2, 2015 Share October 2, 2015 nowadays so many COE bullish posts, Limwsv will need to out mountain once again Come out of mountain for what? Don't need me to cool the market, every day news channel have bad news about the economy. That should keep a damper on the enthusiasm of the bulls. Link to post Share on other sites More sharing options...
WoeiSongKeh 5th Gear October 2, 2015 Share October 2, 2015 If I have booked a car, but my SE has yet to put in a COE bid to date, is my Maybank loan pegged at the former 2.28% or 2.78%? Not sure but I feel if you have signed, I think they have to honor it. ↡ Advertisement Link to post Share on other sites More sharing options...
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