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COE Bidding – 1st Round of January 2019

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Cat B looks ready to increase by about $3k. Cat A probably increase by around $1k.

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Nwadays dun kw wat news is true and wat not. Mayb ownself set up company by another affiliated name sell ownself or watsoever. How they dispose all these 8000 cars alao noboday kws. :)

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Posted (edited)

Good deal overseas? Nyahh... Dereg, take back omv and remaining coe, cars will be scrapped. All 8000 cars one shot. Dunno how gahmen going to tahan.

 

Most likely they kenna jiak below paper value. LCR dun care because wind up liao. No other way to get rid of 8000 cars. Let go at small loss better than hold until big loss.

 

Why not LCR dereg themselves? Prob they don't give a shiat to do so.

Edited by Mockngbrd

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Good deal overseas? Nyahh... Dereg, take back omv and remaining coe, cars will be scrapped. All 8000 cars one shot. Dunno how gahmen going to tahan.

 

Most likely they kenna jiak below paper value. LCR dun care because wind up liao. No other way to get rid of 8000 cars. Let go at small loss better than hold until big loss.

 

Why not LCR dereg themselves? Prob they don't give a shiat to do so.

If sell below paper value, why LCR don't dereg themselves to minimise loss? I think the selling price should be somewhat between market and dereg value.

 

Cheers.

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Cat A 26k guess for me. No mazda 3 sedan new bookings but many avante

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Paper value for new car is very low lor.  First 6 months, cannot transfer and dereg.  You can do it but need to pay a very steep penalty lor.  It is so hidden in onemotoring website there was ever a belief description for example, the penalty on COE alone is the absolute delta of last COE and the COE of the car.  So your car COE 50K and within 6 months you need to sell and the last COE is 30K.  You need to pay a penalty of 20K lor.

 

So, only case is Bankruptcy or Owner is deceased. 

 

Whatever, first 6 month cannot or difficult to sell car lor.

 

 

Then, COE and PARF rebate.  For the first 2 years, the COE rebate is 80%, so from the 7th month to 2 years, you only get 80% of the COE.

 

As for PARF, I think is first 3 year, rebate is same too -  Please check, as I never actually need to do that.

 

Then, on the first day I cross 6 months, I go LTA check, the paper value for my "new" car is ONLY about 60++% lor.

 

So, there is good saving if you know how to choose as the paper value is really really low, and the market value is high.

 

1 car seat there do nothing is say about $20~30 per day, so 8000 car is S$160K~240K every day lor.  Let not forgot misc fee.

 

 

So dying to sell, and any price is somewhat a good price.

 

 

On the Uber scene, even uber, they sure dented our wallet when they buy like no tomorrow.

 

My friend reach SG at 12mn at T3, take a MPV Uber to AngMoKio cost him $50 lor.   Good time is back for Uber driver.  Could last awhile before GO-J effect come in lor.  Want private transport ?  Pay lor, or walk the expressway ? BTW, jaywalking on expressway is ILLEGAL hor.

 

 

 

 

If sell below paper value, why LCR don't dereg themselves to minimise loss? I think the selling price should be somewhat between market and dereg value.

Cheers.

 

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If sell below paper value, why LCR don't dereg themselves to minimise loss? I think the selling price should be somewhat between market and dereg value.

 

Cheers.

If LCR dereg themselves, they get back say $300mil. Also ah gong not happy they spoil market dynamic.

Now sell to motoway, $350mil. got 50mil more.

motoway, take fresh loan 3-5 years. Bank no chasing.

wait next year, coe confirm going up 10k or even 20k. Huat ah!

 

only need to bleed 6-9 months. then.....

 

haiz... coe won't go down too much this year.

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If LCR dereg themselves, they get back say $300mil. Also ah gong not happy they spoil market dynamic.

Now sell to motoway, $350mil. got 50mil more.

motoway, take fresh loan 3-5 years. Bank no chasing.

wait next year, coe confirm going up 10k or even 20k. Huat ah!

 

only need to bleed 6-9 months. then.....

 

haiz... coe won't go down too much this year.

Cannot expect the price to be the same as 10 years ago.

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Do ADs bid more in advance when coe is relatively low even if they dont have any bookings?

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Do ADs bid more in advance when coe is relatively low even if they dont have any bookings?

 

Expect more bookings for the motorshow weekend. 

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I mean do ADs try to secure COEs even when they did not receive bookings for it? E.g. secure some CAT A first, then when customer books he will get it immediately.

 

Or each and every bid only occurs when there is a booking?

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Posted (edited)

I mean do ADs try to secure COEs even when they did not receive bookings for it? E.g. secure some CAT A first, then when customer books he will get it immediately.

 

Or each and every bid only occurs when there is a booking?

AD's will prebuy CoE's as they have 6 months to associate to a car. Very low risk move for them, since they are in the business of selling cars.

 

Also allows them to sell as a "promotion" of guaranteed CoE, but reality is it allows them to know exactly what their profit margins will be.

 

If they are forced to bid, their profit margins have a variable component to them that is out of their control. Also allows them to drive up demand for CoE giving them more flexibility in increasing profit margins. E.g a person is less likely to complain if there is a $10k margin on a $90k CoE, versus a $10k margin on a $13k CoE.

 

But that's the skeptic in me talking :)

Edited by GTO-1

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AD's will prebuy CoE's as they have 6 months to associate to a car. Very low risk move for them, since they are in the business of selling cars.

 

Also allows them to sell as a "promotion" of guaranteed CoE, but reality is it allows them to know exactly what their profit margins will be.

 

If they are forced to bid, their profit margins have a variable component to them that is out of their control. Also allows them to drive up demand for CoE giving them more flexibility in increasing profit margins. E.g a person is less likely to complain if there is a $10k margin on a $90k CoE, versus a $10k margin on a $13k CoE.

 

But that's the skeptic in me talking :)

What about those that can check what amount the AD is bidding for them via LTA's website? Being able to see in LTA's website means it is just being bidded and not a previously secured coe?

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Posted (edited)

What about those that can check what amount the AD is bidding for them via LTA's website? Being able to see in LTA's website means it is just being bidded and not a previously secured coe?

They are booking on behalf of you, which is some of their bids every fortnight. But not all CoE bids necessarily have a booking attached to them.

 

They use these to upsell to buyers, so buyers can get their car sooner or potentially for guaranteed bid car prices.

 

Past few weeks, all the dealers have been selling guaranteed CoE cars on promotion.

 

Someone on the forum gave the idea of requiring a Singpass to make a bid. If that was the case, I would imagine CoE prices would go down because AD can no longer game the system to increase prices without having actual bookings on hand.

Edited by GTO-1

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I mean do ADs try to secure COEs even when they did not receive bookings for it? E.g. secure some CAT A first, then when customer books he will get it immediately.

 

Or each and every bid only occurs when there is a booking?

I think they will only secure Cat E as Cat A is not transferable. They will only bid Cat A under the buyer name when they place booking fee ($10.7k).

 

Cheers.

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I think they will only secure Cat E as Cat A is not transferable. They will only bid Cat A under the buyer name when they place booking fee ($10.7k).

 

Cheers.

I see. Meaning Cat A bidding is directly based on number of bookings. And backlogs.

 

So with 900 backlogs and 3 weeks of new bookings, tomorrow likely to increase?

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My PI is bidding for me for this round. But SE says wont be aggressive as car will only be ready in march.

Well see how much they put in for CatA.

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I see. Meaning Cat A bidding is directly based on number of bookings. And backlogs.

 

So with 900 backlogs and 3 weeks of new bookings, tomorrow likely to increase?

Yes, CAT A are direct bookings and backlogs.

 

But, some backlogs might be cleared by dealer using CAT E COE.

 

However, if the dealer have not transfer the CAT E COE to the buyer, they will still bid for CAT A (with lower price than CAT E they have on hand) in hope to earn more and keep the CAT E for next round (in case CAT A COE increase in next round).

 

The question is, how many CAT E COE that the dealers have on their hand that they must utilise before it expires? This will be the factor/ determinant of the next round COE prices.

 

Cheers.

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