COE Bidding – 1st Round of August 2020

[Jtbc]

On 8/20/2020 at 2:10 PM, Vinceng said:

Believe me - even if you don't top up the $4K, you will still secure your COE.

The distributorship Sales Manager will ask the sales staff to persuade buyers to top up, but at the back of their minds, they will secure COE irregardless.

The distributor has a bigger headache if they don't secure your COE - they risk failing to meet the principal's (manufacturer) annual sales quota and lose their distributorship

I am more agreed to this.

$7k margin(BnB) is good to keep than throw away (let it lapse).

I will only forgo margin below $4k may be.

Good luck to low margin buyers (CB) and be prepared to take back your deposit unless COE crash.

Just my thot. 

Edited August 22, 2020 by Jtbc

[13177]

1 hour ago, Sugimoto said:

Its CN7 model will be called avante at here leh, who says is elantra?

https://avante.hyundai.com.sg/?utm_source=Facebook&utm_medium=Social&utm_campaign=CN7

So the brand new model coming will be called avante this time?! 😂

[Juicyjuice]

47 minutes ago, 13177 said:

So the brand new model coming will be called avante this time?! 😂

Yeah! But I bet it will be much more pricier. Probably changing their target audience. 

[Jtbc]

On 8/21/2020 at 10:13 AM, Timon said:

I got it ard it around $95k with trade in a used car which COE due end of the year.

They are still running a promo at $97k now. So, I think that the gap is not so big.

https://www.cyclecarriage.com/sg/kia/warehouse/?tab=tab-promocars

may i know what is the omv of your niro?

[Jtbc]

On 8/21/2020 at 12:15 PM, SedanFTW said:

In this case, then you are better off campaigning for buyers to bid for COE themselves.
The whole system is this way because dealers bid for buyers, rather than buyers bid themselves.

Some people argue that this is causing the price to increase, others claim otherwise.
I'm personally unsure, but I do note that there's one slight advantage for dealers to bid. They all have some incentives to not increase the COE prices too significantly, and maintain the price stability. Whereas, if all bidders are individuals, then I suspect COE will fluctuate even more than what they are fluctuating now.

It's not that they are lazy. They're not bidding for 1 person only. They're bidding for hundreds of cars. If they each bid $2 for the cars, then they are just bidding against themselves. They need to outbid other dealers, not outbid themselves... I don't think it's even possible for them to bid in the manner you say, unless they're targeting a few cars only.

Remember, they have more incentives to close the COE at a lower price as compared to buyer, cause their bidding will affect their margin. (Yes, they can ask for top-up, but they don't always ask for top-up, and in a normal scenario, top-up requirement is rare.). Lower COE also means that they can generate more demand by lowering their vehicle price at no impact to margin.

I think it's just a bit too idealistic to think that you can just bid in increment of $2, administrative wise.

They will not get the COE they want if they do not bid high. I dont understand your logic of dealers incentives to close at lower. Even they do have, how to get the COE they want with this mindset of closing low.

Who will bid in thousands and who will bid in the min. increment, as a buyer or dealer? In the end who is the one paying for the COE ?

[Jtbc]

On 8/21/2020 at 11:38 AM, SedanFTW said:

That's not how COE bid increase works.
In this case, you are just chasing the bid constantly.

Imagine you're the dealer, and you want to close the deal. The price is now $35,000. Yes, you can bid $35,002, but you will DEFINITELY be outbidded again.

So, you will likely top-up in the range of a few hundred. And because of that, price increase is quite quick. Cause neither party wants to lose.

Also, increment of tens of thousand is not manipulation. Most bidders already put in their target price.
So imagine if there is 5 bidders and 3 slot.

At 2pm, the bid recorded is

A - $20,000
B - $50,000
C - $100,000

the price at 2 pm remains at $1.

If bidder D comes in at $2, the bid price will suddenly jump to $20,000, and not $2.

Also, you are assuming dealer use excuse to increase the price. However, it's actually good that dealer increase price. Cuase, it's supply and demand. When COE price increase, you should increase your price, so that the demand for new cars lower, therefore not as much pressure for COE to continue increase.

For instance, if there are 1k quota this month, and 2k demand. COE price goes up, 1k fulfilled, remaining 1k not fulfilled. If price don't increase, then next month you will still maintain at 2k demand. Instead, if you increase price, maybe less ppl will buy, the demand drops to say 1.4k instead. It gets easier to fulfill the orders. Only then COE price will drop. Then car price will drop again.

By your logic, if dealer shoulnd't increase price when COE increase, then dealer shouldn't decrease their price when COE price drop as well?

 

Thot the COE price is the highest Unsuccessful bid price + $1.

Unless the next Unsuccessful bid price is more than $20k, then it will jump to $20k +$1 as the current COE price.

if D is $2 then COE price will update to $2+1.

Of course Dealers will take any opportunity excuses to increase price. 

This gradual increment will not deter keen buyers to enter.

COE price lies greatly in the supply and demand of the anxiety or the needs of  the buyers. 

Dealers are  just the executor. Payer is still the buyer. You give me the money enough to cover my profit, I will bid higher for you and you will get your COE earlier.

[Jtbc]

On 8/21/2020 at 12:48 PM, Shoebox said:

Ya lor. Probably management decision, then waste SE time, waste customer time, and now everybody knows KMC's dirty tricks.

During CB, the SE asked me if want guaranteed coe, then +$10k from the deal price.

Where got people want to +$10k just to secure guaranteed coe one...

CB deals are both parties mutually betting on lower COE.

If COE drops, both parties happy.

But when COE rises, buyers shouldnt blame dealers for not fufilling the orders.

NG COE is the protection line for the dealers if the outcome is different from their expectation. And this is mutually agreed contract condition.

To have a win-win is to top up to the reasonable price. But not extremely high. Buyer will have to  decide on their price individually. Diff ppl will hv diff comfortable budget.

Or call off the deal or let it lapsed.

Edited August 22, 2020 by Jtbc

[Jtbc]

On 8/21/2020 at 12:30 PM, dalton14 said:

Yes, it will be ideal for buyer to bid themselves. Only needs to submit bid from POSB ATM and monitor the bidding last hour at wed 3pm in front of computer to revise bid online to decide how much they want to pay..

Yes. I prefer to bid by buyers. Dealers just concentrate on car price margin and exclude COE.

Unfortunately, the game play is by dealers bidding. Bcos it benefit Dealers and LTA. Dealers will have more option to earn more with COE bidding as afteralll the cost is from the buyers.

They play always Win, with the NG COE and top up. 

羊毛出在羊身上 。

[Jtbc]

On 8/21/2020 at 9:07 PM, BobbyTan_74287 said:

VES rebates direct discount from car price and made it lower. But your PARF value also lower by this amount. So I do not like to buy car with VES rebates. 

yes. it just an upfront discount.

Your car value is lower and you will be surprise by the end of the ten years you left with very little amt to renew a car. haha...

[Juicyjuice]

21 minutes ago, Jtbc said:

yes. it just an upfront discount.

Your car value is lower and you will be surprise by the end of the ten years you left with very little amt to renew a car. haha...

True. But we’re already paying lesser for the supposedly more expensive car right? So yeah I think fair enough.

[Vinceng]

3 hours ago, Juicyjuice said:

Yeah! But I bet it will be much more pricier. Probably changing their target audience. 

The new Avante (CN7) will cost above $90K at current COE level.

Quite pricey for a Korean car.

The digital display, while it looks cool, will render the car undriveable if the digital screen display breaks down.

[Juicyjuice]

3 minutes ago, Vinceng said:

The new Avante (CN7) will cost above $90K at current COE level.

Quite pricey for a Korean car.

The digital display, while it looks cool, will render the car undriveable if the digital screen display breaks down.

After VES rebate, if there is, still above $90k? 
the digital display like copy from Mercedes

[Uchiha7]

On 8/21/2020 at 11:20 AM, Arkantos said:

i bought Kia sedan from C&C during CB period. Got it at a good price.

Paid deposit for COE bidding. After 4th bid C&C called me to topup a lot more to secure COE. I decline offer.

Now left 1 more bid next month. No way i'm getting the car with their current COE bid amount.

Just take back deposit lo.

Same . Lol

[Mkl22]

7 hours ago, Jtbc said:

CB deals are both parties mutually betting on lower COE.

If COE drops, both parties happy.

But when COE rises, buyers shouldnt blame dealers for not fufilling the orders.

NG COE is the protection line for the dealers if the outcome is different from their expectation. And this is mutually agreed contract condition.

To have a win-win is to top up to the reasonable price. But not extremely high. Buyer will have to  decide on their price individually. Diff ppl will hv diff comfortable budget.

Or call off the deal or let it lapsed.

Cheers bro. Everything you said in this and the last 2 post is exactly what it is. You know how the system works. 
 

Edited August 23, 2020 by Mkl22

[Blync]

7 hours ago, Juicyjuice said:

True. But we’re already paying lesser for the supposedly more expensive car right? So yeah I think fair enough.

This is assuming the dealers have passed on these VES savings/rebates to the customer i.e. lowered the selling price accordingly. In actual fact you wouldnt know right? 🙂 

Alot of times u you dont see cars with VES rebates being cheaper than cars without.

 

 

 

[SedanFTW]

10 hours ago, Jtbc said:

Thot the COE price is the highest Unsuccessful bid price + $1.

Unless the next Unsuccessful bid price is more than $20k, then it will jump to $20k +$1 as the current COE price.

if D is $2 then COE price will update to $2+1.

Of course Dealers will take any opportunity excuses to increase price. 

This gradual increment will not deter keen buyers to enter.

COE price lies greatly in the supply and demand of the anxiety or the needs of  the buyers. 

Dealers are  just the executor. Payer is still the buyer. You give me the money enough to cover my profit, I will bid higher for you and you will get your COE earlier.

Sry, yes, you are right. It's unsuccesful bid +$1. I stand corrected.

The thing is, COE is not paid directly by buyer.
Say if buyer already paid $100k. If they increase the bid by 1k, and cause the final price to increase by 600, they are the one bearing the 600, not the buyer anymore.
So, if their bidding behavior leads to lower COE, they actually have higher margin.

My point is not gradual increment will deter or not deter. My point is, it doesn't make sense for dealer to do increment in the amount of $2.

[Jamesc]

Yeah shouldn't blame the dealers.

10 hours ago, Jtbc said:

CB deals are both parties mutually betting on lower COE.

If COE drops, both parties happy.

But when COE rises, buyers shouldnt blame dealers for not fufilling the orders.

NG COE is the protection line for the dealers if the outcome is different from their expectation. And this is mutually agreed contract condition.

To have a win-win is to top up to the reasonable price. But not extremely high. Buyer will have to  decide on their price individually. Diff ppl will hv diff comfortable budget.

Or call off the deal or let it lapsed.

 

[Fcw75]

5 minutes ago, Jamesc said:

Yeah shouldn't blame the dealers.

 

Dealers are running a business and they are there to make a profit isn’t it?