COE Bidding - 2nd Round of September 2016

[Ken1898]

Me too waiting for opportunity to enter as my car due to scrap in Dec 16.

[Little_prince]

ah gong's finance budget based on COE about 50k

 

i think at most around there nia.

 

lol

 

Because price signed by buyer was high to sustain the coe.

With weakening economy and the fact that orders are slowing, evident from AD throwing in discounts. Next few mths will be down...
Why LLST? Willing buyer, willing seller

 

[Axela72]

isnt when there is rebate, they also gain too? Probably gain more than buyer for example, AD sell the car to you at 55k coe target price with rebate at 45k. However, if the final coe result is 43k, they only return you 2k while pocket the rest of the saving (55k +2k -43k) make from lower coe result

 

nothing to be happy about.

 

this type of results only the AD happy.

 

high enough to secure sale.

 

not low enough for COE rebate.

 

[Pocy]

Thought new quotas for next quarter from Oct? If new quotas lower, likely to add more support to COEs.

[Philipkee]

isnt when there is rebate, they also gain too? Probably gain more than buyer for example, AD sell the car to you at 55k coe target price with rebate at 45k. However, if the final coe result is 43k, they only return you 2k while pocket the rest of the saving (55k +2k -43k) make from lower coe result

Two cents.

 

Perhaps if the rebate level is set so high that the AD has to give back some rebates, the buyers might think the AD is overcharging since he is buying with a high COE.

 

Example. AD sell with coe of 55 K with a rebate of 45 K. Your example. Coe is 43 K. Yes the AD profits 10k after refunding 2k.

 

But the buyer still has a loan based on the 55k he signed when he purchased the car, minus the rebate. To other buyers watching, they might end up boycotting this AD as they feel he is overcharging.

 

That is why their rebate level tries to match actual coe level so that they can show they are already selling as low as price as possible which hopefully generates more sales unless they are a branded car that people will buy whatever the cost. Of cos the perception must be given that they are selling as low as possible. Whether it is in actual fact is another topic.

 

And of cos, no one likes to give any money back, whatever the reason.

[Notsogoodman]

The COE rebate level is actually the dealers optimal profit level. Whether they set higher or lower is usually due to market conditions, as in do they expect COE to drop a lot, to move sideways or to shoot up.

[therock]

There's pent up demand so a massive fall is unlikely ..

PIs need to fulfil their deals.

There are also a bunch of NG Coe bids from the ADs..

45-50 is my prediction.

[merc280v6]

Its a chicken and egg analysis based on demand and supply.

 

If COE was 1 million not all quotas will be taken up and the roads will definitely be less crowded.

 

To be more specific, the vehicle growth formula will change based on existing price demand n supply.

But it would NOT be true the other way around!

 

If COE prices go south, it would NOT result in an increase in car population. Why should it?

The qouta released per month is controlled by LTA.

[Philipkee]

demand is always there ... 1million coe may see excess but the next round when roll over it can drop to 1dollar and all snap up. so it is still quota that counts. price is just an indication of acceptance level.

Not true.

 

If everyone is willing to bid at least a million dollars and above

 

1) if quota is met or exceeded, the govt will huat. There will be no rollover

 

2) if quota is not met, the coe for that cycle will be $1.00 even if everyone bidded a million and above.

 

3) if everyone bids exactly a million, then no one gets a car and it all rollovers to next cycle.

[monsieurlee]

Watching the comments is like watching the 7th month auction. I can almost picture it in my head all the brudders/sistas here screaming the bids - Lai Lai Lai

[Penknife]

I agree that COE prices won't drop to 10k level in the near future.

 

Whenever there's a drop, there will be a new wave of buyers ready to enter the market.

 

Most people will be on a loan package anyway. Banks need business too.

 

Also, with the loan restriction being eased, it makes it even more affordable to own a car.

 

Tell me, what's the percentage of people taking home loans below 15 years and more than 25 years? Singaporeans like to stretch their loan repayment period for as long as possible.

[linyanan]

With Cat A dropping 2 consecutive rounds this month, the market sentiments to buy big ticket item appear demure, which tallies with increasingly gloomy economic outlook for singapore.

[Ct3833]

I agree that COE prices won't drop to 10k level in the near future.

.....

 

Forget about 10k, even 30k is impossible, and when coe price begin to decline, LTA will be quick to step in to tighten COE quota again. It is likely the COE quota announcement in Oct for the subsequent 3 months to be significantly reduced. Edited September 21, 2016 by Ct3833

[Victor68]

Forget about 10k, even 30k is impossible, and when coe price begin to decline, LTA will be quick to step in to tighten COE quota again. It is likely the COE quota announcement in Oct for the subsequent 3 months to be significantly reduced.

 

Don't say so loud. When COE starts to drop to $10K, it shows people are struggling to put food on the table. Who care COE is $10K or $1k. Although unlikely when it comes, we are unlikely to be busy in MCF

 

[Dafansu]

Forget about 10k, even 30k is impossible, and when coe price begin to decline, LTA will be quick to step in to tighten COE quota again. It is likely the COE quota announcement in Oct for the subsequent 3 months to be significantly reduced.

 

The growth is fixed at 0.25% plus those invalidated COEs till Jan 2018. It's based on certain calculation, they won't anyhow reduce it

[Heman75]

Don't say so loud. When COE starts to drop to $10K, it shows people are struggling to put food on the table. Who care COE is $10K or $1k. Although unlikely when it comes, we are unlikely to be busy in MCF

 

if it really happen .. i will chong to buy my favourite car...hahha

[Ben5266]

Today paper said LCR is scaling down....

 

I would think.... They can't find Drivers for their existing stock.

Let's see....

[Ct3833]

The growth is fixed at 0.25% plus those invalidated COEs till Jan 2018. It's based on certain calculation, they won't anyhow reduce it

You believe? go search "lta facts figure " and look for car population by year and see if there is positive or negative growth over the last 3 years.