COE Bidding – 2nd Round of July 2016

[headhunter]

a) The exact quota for each bidding is the month's quota divided by 2.

 

b) The bidding system is explained by LTA here (https://www.lta.gov.sg/content/ltaweb/en/roads-and-motoring/owning-a-vehicle/vehicle-quota-system/certificate-of-entitlement-coe.html). The definition of "reserve price" as given by LTA at this website is:

 

* The reserve price is the maximum bid amount that a bidder is prepared to pay for the COE.

 

I.e. It's not like land parcel tender where Govt has a reserved price of XX$

 

COE price is determined just like PSLE cut-off point for secondary schools. A school with fixed number of vacancies which attracts more students with high PSLE scores applying will end up having high cut-off point.

[yokechye]

I understand your point of 1st to 95th bidder who place 50k.

 

96th to 100th bidder bid 49k and below, therefore never get COE paper.

 

Question

 

1. Why did the 1st to 95th bidder THINK they should place bid around 50k ? There must be a reason for bidder to place around 50k ++ right ? Why don't they bid 30k instead or lower ?

 

ok I've never bid a coe before, so when the bid opens ..maybe everyone bid $1 for a start ..then some vendor or individuals start to bid $49k ..then everyone kan cheong and bid higher than 49k ..eg 50k ..51k etc ... I am sure this is display on some SCREENS right so they bid openly ?

 

2. What is everyone just bid $1 ..does the LTA lan lan accept $1 ? I am sure there is a start reserve price right which the LTA put forth so that $1 coe will never exists right ? If that is the case, LTA must have some "hidden rules" to start the reserve price somehow behind the scene ?

say quota is 100 and everyone (105 bidders) bid $1, I think none will get it.

Unless there are less than 100 bidders or exactly 100 bidders, lowest is $1 then I think COE will be $1

[headhunter]

a) The exact quota for each bidding is the month's quota divided by 2.

 

b) The bidding system is explained by LTA here (https://www.lta.gov.sg/content/ltaweb/en/roads-and-motoring/owning-a-vehicle/vehicle-quota-system/certificate-of-entitlement-coe.html). The definition of "reserve price" as given by LTA at this website is:

 

* The reserve price is the maximum bid amount that a bidder is prepared to pay for the COE.

 

I.e. It's not like land parcel tender where Govt has a reserved price of XX$

 

COE price is determined just like PSLE cut-off point for secondary schools. A school with fixed number of vacancies which attracts more students with high PSLE scores applying will end up having high cut-off point.

 

 

 

 

* the reserve price is the max bid the bidder is prepared to pay the COE ==> that is correct, but we know we do not want to pay so much.

 

Which is why the other statement states that *the bid is in running as long as the reserve price is higher than the current COE price" ==> this mean 53k was the last July price, so for August I must bid more than 53k and not lower than 53k ?

 

maybe the estimated COE AUG CAT A PRICE IS 51270 ..i will tikum and see how far away i am from the actual COE.

 

​

 

Edited July 27, 2016 by headhunter

[merc280v6]

say quota is 100 and everyone (105 bidders) bid $1, I think none will get it.

Unless there are less than 100 bidders or exactly 100 bidders, lowest is $1 then I think COE will be $1

Yes, agree.

If quota is 100 and say there are only 101 bidders in that exercise and all 101 of them bidded $1 ... then NONE will be successful!!

 

No one will get their COEs

No. of "Unused" COEs from that exercise = 100, which will be rolled over to the next exercise.

 

Wah headhunter, you sibei blur lah!

The reserve price is set by each individual bidder, and is unique to that individual. Unlike auctions, the reserve price is NOT set by LTA lah!

 

So in any bidding exercise, there could be as many as n unique reserve prices, where n = number of bidders!

Go Google LTA website lah!

[Pocy]

I understand your point of 1st to 95th bidder who place 50k.

 

96th to 100th bidder bid 49k and below, therefore never get COE paper.

 

Question

 

1. Why did the 1st to 95th bidder THINK they should place bid around 50k ? There must be a reason for bidder to place around 50k ++ right ? Why don't they bid 30k instead or lower ?

 

ok I've never bid a coe before, so when the bid opens ..maybe everyone bid $1 for a start ..then some vendor or individuals start to bid $49k ..then everyone kan cheong and bid higher than 49k ..eg 50k ..51k etc ... I am sure this is display on some SCREENS right so they bid openly ?

 

2. What is everyone just bid $1 ..does the LTA lan lan accept $1 ? I am sure there is a start reserve price right which the LTA put forth so that $1 coe will never exists right ? If that is the case, LTA must have some "hidden rules" to start the reserve price somehow behind the scene ?

Huh .... 1st time? Almost everyone get his/her car thru COE bidding by dealer. Buyers give the budgets to dealers, so you think dealers will start bidding COEs at $1 .... or even $30K when the preceding round was $57K?

[Peqasus]

Check out the CX-3 ? Any pricing yet ?

Paiseh bro, was jus lkg at m6 pricing.

I think the uptake rates for the 2 and 3 are more palpable than the 6 ever can attain!

Confirm! With a $70k Dp for m6 u can almost fully pay for a m3/2.

[Peqasus]

True also make car more affordable to more people. But they did not look far ahead come 2020 the satellite ERP kicks in by that time many people will kena actually slowly walking into the trap without knowing.

 

Very clever stragety

Reminds me of frogs simmering in a pot that is getting hotter every year.

 

Tat said sometimes there's not much options since we can be too tethered to Sg with kids n family here.

 

Seeing my colleagues being laid off only serves to remind me that I can only depend on myself for financial safety. Not my company and certainly not living beyond my means.

Edited July 27, 2016 by Peqasus

[F355]

Ya and the 5 unused quota will row over to next round

 

No. The unused COE will be carried forward the round after next .

 

Eg , unused COE from July 1st bidding will be carried forward to August 1st bidding .  

[Philipkee]

I understand your point of 1st to 95th bidder who place 50k.

 

96th to 100th bidder bid 49k and below, therefore never get COE paper.

 

Question

 

1. Why did the 1st to 95th bidder THINK they should place bid around 50k ? There must be a reason for bidder to place around 50k ++ right ? Why don't they bid 30k instead or lower ?

 

ok I've never bid a coe before, so when the bid opens ..maybe everyone bid $1 for a start ..then some vendor or individuals start to bid $49k ..then everyone kan cheong and bid higher than 49k ..eg 50k ..51k etc ... I am sure this is display on some SCREENS right so they bid openly ?

 

2. What is everyone just bid $1 ..does the LTA lan lan accept $1 ? I am sure there is a start reserve price right which the LTA put forth so that $1 coe will never exists right ? If that is the case, LTA must have some "hidden rules" to start the reserve price somehow behind the scene ?

I have asked these questions before. I think even here on MCF but basically the answers are

 

1). You are suggesting the dealers cooperate with each other to get low coe price which is unlikely or impossible in a dog eat dog world

 

2) if the coe format is changed that only self bid is allowed and only with a coe then a person can go into a showroom/ or you pay what you bidded for and not the lowest successful bid price, interesting things might be seen in coe price

[Pocy]

Next Wednesday is COE bidding day again.

 

Paging Carbon82 to help start the thread. TIA !!!