COE Bidding – 1st & 2nd Round of July 2020

[Rtth84]

15 minutes ago, Lotr said:

Quite true, after 3 months of no bidding and a 1/6 increase in coe, the prices  only increased 3-5k

Fierce demand. Look at the bids

[keane1234]

LTA did their homework for the COE not to crash.

[awhtc]

Not bad.  I thought it would crash below $30k.  Recent car prices are also very good.  Demand is there just that the margin cannot support high COE prices beyond $40k this year.  Hence, I expect around $30k over the next few months.

[Mkl22]

1 hour ago, new_user1988 said:

If hit 40k i will chop my didi

saved.... hahah... still a man.😁

[Lotr]

7 minutes ago, Rtth84 said:

Fierce demand. Look at the bids

Fierce demand but at what price?

[theory_87]

26 minutes ago, Fitmugen said:

Most cars sold during CB and last 3 weeks were priced with COE of around $25k in mind. Assuming most contracts are 4-bid non guaranteed, expect the dealers to eat into their margins a little and bid at about $28k. That should form the floor for the next 2-3 months until the orders are all fulfilled. Buyers who are willing to top up $3-$5k above the signed price should get their cars earlier.

Yeah, $25k COE rebate for mine. But lucky my purchase is 6 bid guaranteed COE. Agent must be expecting the price to drop over the next few round of bidding. In fact my agent didn't even bid. Now I'm hopping the COE price will rise.  

[BMWX5]

What does $25K COE rebate mean? Does it mean they only bid at $25K?

 

[littlecar]

33 minutes ago, Fitmugen said:

Most cars sold during CB and last 3 weeks were priced with COE of around $25k in mind. Assuming most contracts are 4-bid non guaranteed, expect the dealers to eat into their margins a little and bid at about $28k. That should form the floor for the next 2-3 months until the orders are all fulfilled. Buyers who are willing to top up $3-$5k above the signed price should get their cars earlier.

My dealer bid for the Cat B COE at $39k, even though Cat B COE was $30k at the last bidding in March. This tells me that my dealer is still making a profit even if the Cat B COE is $39k (in this case, it closed at $35k). But leaving the dealer's profit margin aside, is it better for the customer if the COE closed lower or higher?

In other words, even though I paid the same price (no top up required) for the car, would it be better for me if the Cat B COE had closed at $25k or at $35k? I am guessing $35k since my paper value would be higher?

[new_user1988]

4 minutes ago, BMWX5 said:

What does $25K COE rebate mean? Does it mean they only bid at $25K?

 

Means if you manage to secure COE less than $25k, agent will rebate u accordingly. E.g COE secured is $23k, then they will rebate you $2k ($25k - $23k)

[Fitmugen]

8 minutes ago, theory_87 said:

Yeah, $25k COE rebate for mine. But lucky my purchase is 6 bid guaranteed COE. Agent must be expecting the price to drop over the next few round of bidding. In fact my agent didn't even bid. Now I'm hopping the COE price will rise.  

Good for you. Even at $35k COE they also earn la. I think the agents also know that its hard to maintain their usual margins.

[littlecar]

6 minutes ago, BMWX5 said:

What does $25K COE rebate mean? Does it mean they only bid at $25K?

 

According to my SE, the rebate value represents what the dealer thinks the COE will be, ie, the  expected COE at which they are selling the car to you for. So if the rebate value is $25k, according to her, your car price is on the basis of a $25k COE, and if the COE ends up higher than $25k, you "benefit" from a COE that is higher than what you paid for.

I think it's safe to say that my SE's explanation is bulls**t haha. 

[Lethalstrike]

Quotas are still way below the bids received. 

After clearing away the backlog of orders, it will be interesting to see the trend over the next 6 months, expecting the poor economic outlook to dampen new car sales. 

[yishunite]

1 minute ago, littlecar said:

According to my SE, the rebate value represents what the dealer thinks the COE will be, ie, the  expected COE at which they are selling the car to you for. So if the rebate value is $25k, according to her, your car price is on the basis of a $25k COE, and if the COE ends up higher than $25k, you "benefit" from a COE that is higher than what you paid for.

I think it's safe to say that my SE's explanation is bulls**t haha. 

Yes. Coe rebate would be the lowest COE can go b4 they feel a bit of remorse abt how much money they made off u

[theory_87]

4 minutes ago, Fitmugen said:

Good for you. Even at $35k COE they also earn la. I think the agents also know that its hard to maintain their usual margins.

Yeah. with 35k COE, their margin is still a healthy $14,000 for my case.

[littlecar]

5 minutes ago, yishunite said:

Yes. Coe rebate would be the lowest COE can go b4 they feel a bit of remorse abt how much money they made off u

Haha, this is a brilliant way to explain the COE rebate. I think the rebate means pretty much nothing to the buyer - the amount at which the dealer bids for your COE (the reserve price) tells you far more. 

[theory_87]

38 minutes ago, littlecar said:

According to my SE, the rebate value represents what the dealer thinks the COE will be, ie, the  expected COE at which they are selling the car to you for. So if the rebate value is $25k, according to her, your car price is on the basis of a $25k COE, and if the COE ends up higher than $25k, you "benefit" from a COE that is higher than what you paid for.

I think it's safe to say that my SE's explanation is bulls**t haha. 

Let's put it this way. COE rebate at $25k and the dealer margin at $20k.

1. If they secure COE at $35k for you, their margin drop to $10k. so they earn less. 
2. If they secure COE at $25k, they earn their expected margin of $20k
3. If they secure COE at $15k, they earn $20k and rebate $10k back to you.

 

Edited July 8, 2020 by theory_87

[crazythen]

I listened to all election rally about covid storm ahead...but the COE bid....

[Koizee]

3 minutes ago, theory_87 said:

Let's put it this way. COE rebate at $25k and the dealer margin at $20k.

1. If they secure COE at $35k for you, their margin drop to $10k. so they earn less. 
2. If they secure COE at $25k, they earn their expected margin of $20k
3. If they secure COE at $15k, they earn $30k.

 

ermmm? if they secure the coe at 15k, the 10k will be rebate back to your buying price, dealer highest margin will only be 20k.