Why more people are renewing COE?

[Ct3833]

Several reasons why people renew coe instead of buy new cars:-

 

1. More loan restrictions. Canât take full cost of car. At the same time, loan restrictions elsewhere like property etc means people prefer to spend money there.

 

2. Cars more reliable, more information available online on how to maintain car. Easier access to information on workshops etc.

 

3. New car vs renew coe vs public transport. I must say public transport has improved in terms of network and people perhaps feel itâs either drive existing car or just donât drive.

Your point 3 most valid among the three. Part of the reasons I renew my COE because my car is underutilized.

Loan could be the other good reason too

 

 

this group also contribute to the crunch by renewing early to lock in lower COEs.

Ah i get your point, good one. Edited April 26, 2019 by Ct3833

[Amazon777]

I'm still wondering should I renew a 9yrs old BMW F10 with OMV $36k. I had spent $10k to change the wear and tear 2yrs ago and Mileage is 140k now. Initially, waited to wait till next year closer to expiry to decide on renewal but COE on uptrend.

 

Was thinking to renew $31k in Feb'19 but it went up to $33k and $35k PQP now. If renew now and by next year June decided to scrap/export due to major repair, can still recover the PARF and balance COE of the renewed PQP. If mine is a Merc, shouldn't have much struggle. Anyway, still got 4 days to decide. Ask my wifey, she ok to swap to a new Elantra, her face frowning.

 

1 year ago, almost bought a 1 owner, 9yrs old Cayman 2.7L for $60k+. This one no brainer, confirm renew COE

Edited April 26, 2019 by Amazon777

[JimmySanchez]

I'm wondering why Singapore car dealers margin so high? Almost equivalent to additional 100% ARF.

 

In other countries where there's no COE and no ARF, the dealers can survive with very low (relative to Singapore) margins.

 

So how come despite there being so many dealers in Singapore (hence competition), they still manage to charge such high margins?

[sHy3r]

I bought my KIA at $57,999 in 2010 April. COE given $30,000.

 

U can do ur math.

 

Now coe how much, and car price how much.

[dappercivility]

I summarize for you.

 

Its not the car

 

Its the MONEY.

 

Straight to the point! I like!

 

If money isn't any issue, who cares about value for money, running costs, how much % downpayment or coe prices? 

Unless the car is a special one, I would not even consider renewing coe.

 

I do however am also looking at getting a renewed coe mini cooper S of the R56  model which is the best looking mini to me and also looking to use it as a daily and under a small budget, hence my quest at a renewed coe mini cooper s.

[Ct3833]

I'm wondering why Singapore car dealers margin so high? Almost equivalent to additional 100% ARF.

 

In other countries where there's no COE and no ARF, the dealers can survive with very low (relative to Singapore) margins.

 

So how come despite there being so many dealers in Singapore (hence competition), they still manage to charge such high margins?

and they use the whole car price , including COE, ARF etc to calculate their margin, this is completely wrong. 

[dappercivility]

I'm wondering why Singapore car dealers margin so high? Almost equivalent to additional 100% ARF.

 

In other countries where there's no COE and no ARF, the dealers can survive with very low (relative to Singapore) margins.

 

So how come despite there being so many dealers in Singapore (hence competition), they still manage to charge such high margins?

In other countries, there are many authorised dealerships for the same car brand hence more competition. In Singapore, authorised dealership for any brand is only one. The only competition these different brand dealerships have are only the PI.

[RogerNg_185295]

I bought my KIA at $57,999 in 2010 April. COE given $30,000.

 

U can do ur math.

 

Now coe how much, and car price how much. ð

How can compare like that? A bowl of noodles cost 2 dollars then. Now you know cost how much?

[Solar]

and they use the whole car price , including COE, ARF etc to calculate their margin, this is completely wrong.

Car trade associations like cartels.. Don't think they will dispute how their margin is calculated.

Industry "standard"

[Ahbengdriver]

cars are expensive to afford, tahts why people xxtend COE or buy w/e cars like me lor. chao garmen greedy ma

[UncleAtas]

Cars are build to last more than 10 years. So why limit the lifespan of the car just because of the expensive paper value.

[Ct3833]

I'm wondering why Singapore car dealers margin so high? Almost equivalent to additional 100% ARF.

 

In other countries where there's no COE and no ARF, the dealers can survive with very low (relative to Singapore) margins.

 

So how come despite there being so many dealers in Singapore (hence competition), they still manage to charge such high margins?

this is a unique SGP auto trade phenomenon, over time, the dealers( ADs) know that they cannot depend on volume to make money  due to the limited COE supply. If they sell low price low margin, they may not secure sufficient COE to meet the demand.  So instead of selling more at low margin, they rather sell less at higher margin. After a while, they realise selling at higher margin is a better approach, less work, more money, so they continue to sell higher and higher, left behind a few less popular brands who are offering lower mark up but still, it wont be too low because they need min sales volume to survive. end up the dealers and LTA are the one laughing to the bank at the expense of our pockets. 

[Ahbengdriver]

My angmoh friend told me recently his friend in Helsinki bot a Prius.  About $18.5k Singdollars nia.

 

How much is it in Singapore?

 

One of the reasons why people extend COEs.  All the $$ went to the garmen.

[Mkl22]

I'm still wondering should I renew a 9yrs old BMW F10 with OMV $36k. I had spent $10k to change the wear and tear 2yrs ago and Mileage is 140k now. Initially, waited to wait till next year closer to expiry to decide on renewal but COE on uptrend.

 

Was thinking to renew $31k in Feb'19 but it went up to $33k and $35k PQP now. If renew now and by next year June decided to scrap/export due to major repair, can still recover the PARF and balance COE of the renewed PQP. If mine is a Merc, shouldn't have much struggle. Anyway, still got 4 days to decide. Ask my wifey, she ok to swap to a new Elantra, her face frowning.

 

1 year ago, almost bought a 1 owner, 9yrs old Cayman 2.7L for $60k+. This one no brainer, confirm renew COE

I will renew if you really like the car. Next few bids is going to be around 45k or higher for CatB. The PQP will move towards 45k for June PQP. That’s 10k higher than now. At most you lose an extra 3.5k if you renew now and decide to scrap in the end.

[yishunite]

I'm wondering why Singapore car dealers margin so high? Almost equivalent to additional 100% ARF.

 

In other countries where there's no COE and no ARF, the dealers can survive with very low (relative to Singapore) margins.

 

So how come despite there being so many dealers in Singapore (hence competition), they still manage to charge such high margins?

It is high but not as high as list price minus basic cost... there is also land/floorspace cost which is exhorbitant in sg. In most countries a car dealer will be located almost outside of town for the cheapest possible land costs. In sg they are located downtown in some of the most expensive part of town

 

Still... willing buyers mean theres no pressure on them to cut prices and be more efficient with underlying costs

[Ct3833]

My angmoh friend told me recently his friend in Helsinki bot a Prius.  About $18.5k Singdollars nia.

 

How much is it in Singapore?

 

One of the reasons why people extend COEs.  All the $$ went to the garmen.

you very spot on.

 

and comparing a new car vs a COE car:

                            New E200                renew COE

Total price            $240k                         $70k

PARF                   -$30k                          $0

net over 10 years $210k                         $70k

 

The difference of $140k  can buy me two more COE cars,   will go to dealer margin and LTA. Of course, old car no leather smell, does not look as good, less functionality, and need some money to repair but i dont think the repair cost will go up to 100k.  Poor man talk. got money buy new car of course. 

Edited April 27, 2019 by Ct3833

[Ahbengdriver]

I'm still wondering should I renew a 9yrs old BMW F10 with OMV $36k. I had spent $10k to change the wear and tear 2yrs ago and Mileage is 140k now. Initially, waited to wait till next year closer to expiry to decide on renewal but COE on uptrend.

 

Was thinking to renew $31k in Feb'19 but it went up to $33k and $35k PQP now. If renew now and by next year June decided to scrap/export due to major repair, can still recover the PARF and balance COE of the renewed PQP. If mine is a Merc, shouldn't have much struggle. Anyway, still got 4 days to decide. Ask my wifey, she ok to swap to a new Elantra, her face frowning.

 

1 year ago, almost bought a 1 owner, 9yrs old Cayman 2.7L for $60k+. This one no brainer, confirm renew COE

Renew la.

 

My family also have a 7.5 years F10.  Good all round car, spacious, can cheong on NSH.  Fairy reasonable maintenance cost.

[mersaylee]

you very spot on.

 

and comparing a new car vs a COE car:

New E200 renew COE

Total price $240k $70k

PARF -$30k $0

net over 10 years $210k $70k

 

The difference of $140k can buy me two more COE cars, will go to dealer margin and LTA. Of course, old car no leather smell, does not look as good, less functionality, and need some money to repair but i dont think the repair cost will go up to 100k. Poor man talk. got money buy new car of course.

May I introduce you....

 

https://www.google.com.sg/search?q=new+car+smell+spray&client=safari&hl=en-sg&prmd=isvn&source=lnms&tbm=isch&sa=X&ved=2ahUKEwikvvr0k-_hAhVUXnwKHV9zC0AQ_AUoAXoECAsQAQ&biw=375&bih=537