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COE Bidding – 1st Round of August 2020

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5th Gear (edited)
On 8/2/2020 at 8:44 PM, Kia7200 said:

I guess by the later qtr of this round of coe bidding. The premium will start to drop

 

No way now ppl willing to pay a 30-40k coe premium during this pandemic. 

Unfortunately, COE prices are decided by dealers and not buyers!

Edited by Civic101
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Clutched
15 minutes ago, Civic101 said:

Unfortunately, COE prices are decided by dealers and not buyers!

True that 

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1st Gear
17 minutes ago, Civic101 said:

Unfortunately, COE prices are decided by dealers and not buyers!

I think what @Kia7200 says can still be valid in a way.

Just that instead of COE, it becomes --> There's no way ppl are willing to pay $XXX for cars in this economic condition.

Cause, ultimately, buyers view is the car price that they're paying. If they feel car price is too expensive in this scenario, they wait. And vice versa..

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Clutched (edited)

Yes i agree, even tho dealers can sort of control the prices they are not entirely transparent to the situation.

There is still some level of guesswork on their end. For example, they may have overcommitted too many low margin units during the lockdown and underestimated the COE prices for July's bidding. The safety net for them was to stretch the bids from to 8 or 10 bids to even out the bids across a longer period and prevent a further hike in COE.

Edited by Blync

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6th Gear

Dealers, esp the big ones, have a lot more market information than the customers. Not only that but by overpricing the COE-less cars, they control the bidding process.

So they dont directly control COE price but they have many more tools to push it in the direction where they want

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1st Gear
1 hour ago, Civic101 said:

Unfortunately, COE prices are decided by dealers and not buyers!

Where does the money come from?

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1st Gear

Logically, prices would drop in a weak economy (like now and at least the next 2-3 quarters).  Unfortunately, weak economy does not equate weak demand in our context as supply is throttled by quota.  In other words, global economy can be weak while car demand can still be artificially strong.  The silver lining is, of course, prices will not shoot through the roof but likely to hover around the $18k to $28k range in a couple of months time. 

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Turbocharged
On 8/2/2020 at 5:03 PM, Jamesc said:

This recession is the perfect storm - all the thunder and lightning but no rain.

Until the rain comes and people take out their umbrella 

then we will see less people buying cars.

If not I also say now is the best time to

:grin:

Buy buy buy bye bye

There are 2 potential buyers here. James and Philip.

For James, it depends on how urgent his mil needs the car and whether soon a suitable car can be found; and for Philip, he has all the time in the world to wait!

So, their bids may not affect the market rate that much!

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Hypersonic
15 minutes ago, Fitvip said:

There are 2 potential buyers here. James and Philip.

For James, it depends on how urgent his mil needs the car and whether soon a suitable car can be found; and for Philip, he has all the time in the world to wait!

So, their bids may not affect the market rate that much!

We both will help keep COE low. 

:D

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Clutched
3 minutes ago, HappyDriver24 said:

anyone signed w BM for their Harrier at 128k? Did u get ur COE the previous time?

Interested to know too. I was tempted when I saw that price too 

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1st Gear

Coe die also don wan drop... lets hope this round drop then will really drop....

reality. think will hover at this region

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Turbocharged
30 minutes ago, Fitvip said:

There are 2 potential buyers here. James and Philip.

For James, it depends on how urgent his mil needs the car and whether how soon a suitable car can be found; and for Philip, he has all the time in the world to wait!

So, their bids may not affect the market rate that much!

 

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5th Gear
5 minutes ago, Bandai said:

Coe die also don wan drop... lets hope this round drop then will really drop....

reality. think will hover at this region

Looking at how dealer up their price, it will not drop. Really wonder if there’s such a strong demand? Or really those existing owners all want to change out their cars? 

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Turbocharged
3 minutes ago, Bandai said:

Coe die also don wan drop... lets hope this round drop then will really drop....

reality. think will hover at this region

I think it will hold for now, but not for long, judging by the number of retrenchments and closure of businesses. PHV buyers will not rush in as many are giving up the idea. So, I personally expect the coe to go downwards.

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5th Gear
36 minutes ago, Pixel18 said:

Logically, prices would drop in a weak economy (like now and at least the next 2-3 quarters).  Unfortunately, weak economy does not equate weak demand in our context as supply is throttled by quota.  In other words, global economy can be weak while car demand can still be artificially strong.  The silver lining is, of course, prices will not shoot through the roof but likely to hover around the $18k to $28k range in a couple of months time. 

You are right. With artificial hands massaging the figure, it won’t drop. 
 

if things were to go on as per normal without CB, price now probably be at 25k. Or govt release the quota in linear and don’t cut here and there, it could be 23k COE. 
 

we can only see how long this last. If apr to Jun dereg only added in Aug, then Jul to Sept dereg will add into Oct. I’ll think if there’s no more such nonsense from govt, oct COE quota will bump up and COE price may drop. Couple with weaker demand due to more job losses, COE price is difficult to maintain. 
 

the only thing govt can do is continue to cut the quota, the next reason to use could be negative growth since 0 growth already been used. 

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5th Gear
5 minutes ago, Fitvip said:

I think it will hold for now, but not for long, judging by the number of retrenchments and closure of businesses. PHV buyers will not rush in as many are giving up the idea. So, I personally expect the coe to go downwards.

Yup. Many PHV companies are facing car stuck in shop and no rental. At least at where I’m working, cars are parked at the premises and collecting dust. Many who are still driving probably got stuck in the contract as it has not end yet. once the contract end, many will either opt for COE cars which are cheaper to rent, or they may forgo driving PHV. I would think that they will go for COE car, as they still need to earn and eat. New cars? Maybe have to slash price to attract them. 
 

if pandemic goes on, difficult for mid and lower income to come in and buy car. But the rich, will continue to buy house and cars. If anyone realize, CAT B bidder this type round Seem to be catching up with Cat A in terms of number. So... I will think small car demand is getting weaker.... 
 

 

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Twincharged
On 8/2/2020 at 7:57 PM, Brass said:

He only drink coffee only,how expensive can coffee cost?

Since 2017, I visit MI weekly to collect some free bread and coffee  (taste like sxxt now) and use the toilet at least twice.

By chance if I buy a Hyundai and live at Dawson Place, I will go for breakfast every day.

I am really of one kind...[shakehead]

There's bread at MI?  Going to MI to ask about their cars nao!!

Before I go, what time is the bread available? :D

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