COE Bidding – 1st Round of August 2020

[Buffy]

8 hours ago, Mkl22 said:

its is never a 1-1 mapping of the COE price to the actual price you pay. Typically it is the next buyer who benefits from a drop in the coe prices. Likewise it is the next buyer who pays more. as all ADs adjust their prices up or down after coe results are out.

Also if one thinks that it is so easy to earn 15k a car. then why not you go do it?

 

I think only for @Jamesc it is easy. must be earning like siao now and money flowing in like crazy. hahaha. that why so free to TCSS in MCF. 😁🤣

For every Audi A4 sold, the profit is $76,000+
 

For every E200 sold, the profit is $86,000+
 

Figures from LTA. 

[Buffy]

7 hours ago, Passion said:

Need to have kangtao then can do mah. If I have the money to import car and provide full suite after sales service. I’ll do it. No? Never easy to penetrate the market. Look at MG, made in China brand. Yes you got a brand to bring in, but ask yourself how many willing to plouge 100k to buy a never really hear before and made in China brand? Don’t say Volvo, Volvo already taken up by Wearnes and is an established brand. 

MG is an UK brand, famous for roadsters in the early 1920s onwards. Bought over by China having two plants, Shanghai and Thailand. Performance is bring in MIC cars next year. Moving forward, that’s the trend nowadays. China is really taking over the market in the future. 

[littlecar]

48 minutes ago, Correctorwrong said:

Well said, spoken like a true SE. 😂😂😂 but it’s like that, some days AD win some days consumer win. As you can see during CB period, it was a buyers market. Suddenly tables have turn when CB lifted. Reasonable or not is not determined by you, it depends on the individual consumer’s appetite (how much he is willing to pay to get the goods). 

I think to be fair, everyone wants to pay the least possible amount, and therefore the lower the AD's profit the better. But how realistic is that, especially when talking about continental cars like Mercedes, Audi, and BMW. If you don't want the AD to make more than $10k profit, then your choice of brand will probably be limited to Japanese and Korean makes, or maybe at a stretch, Skoda and Peugeot. As for me, I accept that ADs are running a business, and as long as I want the car, I can afford the car, and the profit is not unreasonable (to me subjectively) insofar as it does not make the car poor value, I can live with an AD making more than $10k or $20k profit. My objective is to get a car I want at a price I am comfortable with, not restrict the AD's profit (which is not really my problem). In this regard, I do find the Mercedes premium not value for money (maybe I will change my mind if I become richer), and Audi's / Volkswagen's premium more reasonable, though nothing quite beats Mazda or KIA. 

[Passion]

1 hour ago, pengu said:

This is not true.

I don’t think it’s right to include ARF, COE, etc into the cost of goods sold, since those are paid to the government, and not to the provider of the goods (ie. manufacturer).

I suppose we just have a different perspective with regards to whether taxes and fees constitute “costs”.

Because dealers packaged everything together, you formed the perspective that taxes and fees are “costs”. That’s why, in my original post, I opined that dealers should separate all the components, such that customers know how much fees and taxes they are paying to the govt, and treat them as such, rather than treating them as “costs” to the dealer.

Not up to you to say. I already said, the difference between basic cost to selling price is dealer’s profit. You like it or not, see whichever perspective. That’s the fact. 
 

you want to see your perspective then you continue. I believe many car buyers here know what I’m saying.

kthxbye

[Mkl22]

54 minutes ago, Buffy said:

For every Audi A4 sold, the profit is $76,000+
 

For every E200 sold, the profit is $86,000+
 

Figures from LTA. 

and people still buy!

Population of makes:

2009: audi 5590 cars, Mercedes: 27621

2019: audi 20298, Mercedes: 61048

obviously they were doing something right! hahahahahha

Edited August 17, 2020 by Mkl22

[Mkl22]

42 minutes ago, Buffy said:

MG is an UK brand, famous for roadsters in the early 1920s onwards. Bought over by China having two plants, Shanghai and Thailand. Performance is bring in MIC cars next year. Moving forward, that’s the trend nowadays. China is really taking over the market in the future. 

MG is a british brand that should have stayed in the past.

[Buffy]

7 minutes ago, Mkl22 said:

and people still buy!

To see is to believe

[Buffy]

6 minutes ago, Mkl22 said:

MG is a british brand that should have stayed in the past.

They registered 22 units in July alone. I’d say MG is more well known with the PGs n MGs😂

[Terence2112]

49 minutes ago, Passion said:

Not up to you to say. I already said, the difference between basic cost to selling price is dealer’s profit. You like it or not, see whichever perspective. That’s the fact. 
 

you want to see your perspective then you continue. I believe many car buyers here know what I’m saying.

kthxbye

I agree with this explanation. I don’t care what the AD paid to the distributor. I just need to know the profit margin the AD is making, after inclusive of COE, ARF and etc. The lesser, the more shiok I feel. 

 

[Mkl22]

14 minutes ago, Buffy said:

To see is to believe

Not doubting you. Know this all along. 

[Buffy]

22 minutes ago, Mkl22 said:

Not doubting you. Know this all along. 

Not saying that you are doubting me. Just wanted to create more awareness for the rest. 

[hungryjack]

1 hour ago, littlecar said:

I think to be fair, everyone wants to pay the least possible amount, and therefore the lower the AD's profit the better. But how realistic is that, especially when talking about continental cars like Mercedes, Audi, and BMW. If you don't want the AD to make more than $10k profit, then your choice of brand will probably be limited to Japanese and Korean makes, or maybe at a stretch, Skoda and Peugeot. As for me, I accept that ADs are running a business, and as long as I want the car, I can afford the car, and the profit is not unreasonable (to me subjectively) insofar as it does not make the car poor value, I can live with an AD making more than $10k or $20k profit. My objective is to get a car I want at a price I am comfortable with, not restrict the AD's profit (which is not really my problem). In this regard, I do find the Mercedes premium not value for money (maybe I will change my mind if I become richer), and Audi's / Volkswagen's premium more reasonable, though nothing quite beats Mazda or KIA. 

Makes sense to me. End of the day, if you don't agree then don't buy. Don't go into people place and disagree with their way of doing biz. They did not force u to buy from them. Just like how branded boutique stores price their luxury goods. Whatever you can say they don't care. To them, u can't afford then don't buy. 

[james1055]

So when is the next COE bidding? Tomorrow or Wednesday?

[Lotr]

8 minutes ago, james1055 said:

So when is the next COE bidding? Tomorrow or Wednesday?

started today, ends on wed

[james1055]

12 minutes ago, Lotr said:

started today, ends on wed

Thanks. Let see my 4th bids how it turns out.

[Correctorwrong]

12 minutes ago, james1055 said:

Thanks. Let see my 4th bids how it turns out.

Good luck to everyone. With COE limited quota announcement plus HSK Budget announcement, there’s a good Wednesday coming for LTA! 

[Correctorwrong]

3 hours ago, pengu said:

Haha that’s why I limit the margin I’m willing to pay to $10k, anything more I will walk away.

Thats why for those who were asked to top up, it is best to calculate the profit the dealer will earn at current COE level.

If it is still above $5k, you will still get the car even if you don’t top up. At most, the dealer will just indent a new car for you, because they will still earn from the sale at that price 🙂

Wow looking at this will make me wonder whether I will get my car too. Here’s a scenario for all to debate on though.  Imagine the AD sold 300 cars during CB, will you want to
1) Make $1,500,000 from all 300 cars or;

2) Refund 200 cars’ deposits and still make $1,500,000 ($15,000 per car x 100 cars). 

[Bandai]

41 minutes ago, Correctorwrong said:

Wow looking at this will make me wonder whether I will get my car too. Here’s a scenario for all to debate on though.  Imagine the AD sold 300 cars during CB, will you want to
1) Make $1,500,000 from all 300 cars or;

2) Refund 200 cars’ deposits and still make $1,500,000 ($15,000 per car x 100 cars). 

unrealistic example. 

But for the fun of it, if its not car and some other merchandise, will go for 1, profit is there cash flow is back and reputation is kept. U promise u deliver.

 

But since it is car, there can only have limited amt of cars to be sold (coe quota), hence always go for the highest profit margin and lesser work to do, cash flow is in good position if choosing option 2, less car sold, since the car likely is 50% existing stocks, 50% import upon demand (profit remain same). 

And at any one point of time, u only fork out capital of 100 cars vs 300 cars, and given currently market situations, i will like to have less risk n more profit (since profit is the same then go for second option). 

But then as a AD ur reputation will be smelly, due to not able to fulfill the orders, but then what the hack if i like mercs i like mercs. If i like korean cars i will still go for korean cars. It doesnt suffer much. 

So most big AD will go for second options. 

Where else not that established AD will side with options 1, trying to close as much as possible to build up reputation. Like one of the skoda owner who purchased at 90k.