Auction Cars in Sgcarmart

[CH_CO]

agree.... ya i know GE is the finance company, not surprised if they got more cars to auctioned than others...

 

Actually the others have agreements or tie ups with car dealers , GE deals aren't the best around recently. Quite high interest , from my sources they wanted to slow down.

[Windchoco]

Actually the others have agreements or tie ups with car dealers , GE deals aren't the best around recently. Quite high interest , from my sources they wanted to slow down.

 

So since you are insider, any advise on good lobang for such cars ? Financing not needed.

[Galantspeedz]

Actually the others have agreements or tie ups with car dealers , GE deals aren't the best around recently. Quite high interest , from my sources they wanted to slow down.

 

interest rates are higher but they are willing to take in higher risk or should i say higher loan quantum..... i tot they tried to slow down since 08 or 09

[CH_CO]

So since you are insider, any advise on good lobang for such cars ? Financing not needed.

 

Call the company. Ask them if they can release the car to you? You pay 5k above the last bid? Good lobang or not , not up to companies. Like i said before , Kr cars and older cars are pretty easy. It would only be the open bidders that are doing the bids. For MIJs , for e.g FIT, most likely dealers would get it.

Edited March 12, 2010 by CH_CO

[CH_CO]

interest rates are higher but they are willing to take in higher risk or should i say higher loan quantum..... i tot they tried to slow down since 08 or 09

 

Of course , typical rates 3% at most , they offer 3.5% in 3 years they earned 10% already. Even if they sold the car at par also not scared. Since the balance can slowly take back from the lender after the car is sold. Interests rates without asset backing can be frightening.

Edited March 12, 2010 by CH_CO

[Evomatrix]

In reply to Mrmilktooth's post - but I dun you see a Black C180 on auction list. Are you referring to a mercedes c180?

 

[Introz]

interest rates are higher but they are willing to take in higher risk or should i say higher loan quantum..... i tot they tried to slow down since 08 or 09

 

ic ic

i wanted to buy cheap cars for personal use.. seeing auction car is quite low..

but then i wanted to buy in april ( after 1year pass licences ) so insurances cheaper

anything can i ask u for more details?

[Mrmilktooth]

In reply to Mrmilktooth's post - but I dun you see a Black C180 on auction list. Are you referring to a mercedes c180?

 

 

u r right. for now there is none, maybe our ELITE guy will get sick of his ride in 1 month and auction it off for a bigger, better MB..

 

[Galantspeedz]

ic ic

i wanted to buy cheap cars for personal use.. seeing auction car is quite low..

but then i wanted to buy in april ( after 1year pass licences ) so insurances cheaper

anything can i ask u for more details?

 

i can try to help you but CH_CO should be able to help you more... i have been out of this line for about 2yrs... but common things maybe still can help....

[CH_CO]

Taken from my previous post and slightly edited.

 

 

That's something for your info but might not be be totally correct but at least from my view point. Don't quote me in front of the bank. By the way i'm not the car auction specialist. I'm in charge of operations. So i might not know the total details of how to go about.

 

When we are buying cars on installment, what we call is its a hire purchase scheme. In the hire purchase scheme, we aren't the owners legally till the product (in this case, car) is fully paid. Who ever provides the loan for the hire purchase, is the legal owner.

 

If the borrower defaults on loan payment, the bank or whoever that lends you the money (owner) has the every rights to repossess the product and do what is deem fit, to recover the balance of the outstanding loan. Any shortfall after recovery will than be claimed from the borrower. Eg, if the car's outstanding loan is $60k, and the car is sold at $50k, the lender will claim the outstanding $10k from the borrower.

 

Since the lender is the legal owner, they have the every rights to sell the car and the new owner will not be subjected to legal consequences from the previous hire purchaser. Next, what you see, on the car auctions, are prices much lower than 2nd hand cars. No doubt that the price will be cut to its lowest, but 60-80% discount is mostly unreal. It may happen for the higher priced cars though. I.e Contis and Kr which has slightly lower demand.

 

Example.

 

Let's say, it's a 2+yrs old Honda Fit with a current street value of $40k. Assuming the OMV is $18,500k and COE being $16,500k. The export value of the car would be:

 

ARF left = OMV x 75% = $13,875

COE = $16,500k x 7/10yrs = $11,550 (round off)

Body value = $6k (assumption)

Total market value = $31,425

 

Thus, the car may go as low as that value ($31,425) while the street value is about $40k. The difference is $8k+/- (20%), others would deem it as a price reduction. In some cases typically extreme cases, they may sell it minus the body value, as the car can be exported at a higher value. In the case of BMWs and contis. That's why you don't see much of BMWs and Mercs.

 

Typically popular models of repossessed cars are actually taken up by other car dealers and sold as a 2nd hand cars . I.e FIT. The highest bidder might not always win , typically bidders would think they are lucky and bid a far fetched bid resulting in failures , popular models would typical have their prices bid to near market prices sometimes even higher than market as this market is not well informed. My advice would be to look into less popular models and Kr cars that are >4 years old.

 

The main concern for a re-possessed car is the Bank have to make sure they sell the car at the SHORTEST time at the HIGHEST price to avoid legal complications for re-possessed vehicles. That is to say, if they sell too low, they have to justify that they have done their own due diligence to ensure that it was the best price given that price and open market auctions would justify that part. For everyday that the vehicle is NOT SOLD, the ex-owner will be liable to pay for the parking and maintenance fee (about $20-80 a day!!! depending on models).

Edited March 12, 2010 by CH_CO

[Galantspeedz]

ic ic

i wanted to buy cheap cars for personal use.. seeing auction car is quite low..

but then i wanted to buy in april ( after 1year pass licences ) so insurances cheaper

anything can i ask u for more details?

 

 

anyway as long as you below 29 it will still be expensive.....

[Introz]

anyway as long as you below 29 it will still be expensive.....

wahh

must wait another year

:angry:

[Introz]

Taken from my previous post and slightly edited.

 

 

That's something for your info but might not be be totally correct but at least from my view point. Don't quote me in front of the bank. By the way i'm not the car auction specialist. I'm in charge of operations. So i might not know the total details of how to go about.

 

When we are buying cars on installment, what we call is its a hire purchase scheme. In the hire purchase scheme, we aren't the owners legally till the product (in this case, car) is fully paid. Who ever provides the loan for the hire purchase, is the legal owner.

 

If the borrower defaults on loan payment, the bank or whoever that lends you the money (owner) has the every rights to repossess the product and do what is deem fit, to recover the balance of the outstanding loan. Any shortfall after recovery will than be claimed from the borrower. Eg, if the car's outstanding loan is $60k, and the car is sold at $50k, the lender will claim the outstanding $10k from the borrower.

 

Since the lender is the legal owner, they have the every rights to sell the car and the new owner will not be subjected to legal consequences from the previous hire purchaser. Next, what you see, on the car auctions, are prices much lower than 2nd hand cars. No doubt that the price will be cut to its lowest, but 60-80% discount is mostly unreal. It may happen for the higher priced cars though. I.e Contis and Kr which has slightly lower demand.

 

Example.

 

Let's say, it's a 2+yrs old Honda Fit with a current street value of $40k. Assuming the OMV is $18,500k and COE being $16,500k. The export value of the car would be:

 

ARF left = OMV x 75% = $13,875

COE = $16,500k x 7/10yrs = $11,550 (round off)

Body value = $6k (assumption)

Total market value = $31,425

 

Thus, the car may go as low as that value ($31,425) while the street value is about $40k. The difference is $8k+/- (20%), others would deem it as a price reduction. In some cases typically extreme cases, they may sell it minus the body value, as the car can be exported at a higher value. In the case of BMWs and contis. That's why you don't see much of BMWs and Mercs.

 

Typically popular models of repossessed cars are actually taken up by other car dealers and sold as a 2nd hand cars . I.e FIT. The highest bidder might not always win , typically bidders would think they are lucky and bid a far fetched bid resulting in failures , popular models would typical have their prices bid to near market prices sometimes even higher than market as this market is not well informed. My advice would be to look into less popular models and Kr cars that are >4 years old.

 

The main concern for a re-possessed car is the Bank have to make sure they sell the car at the SHORTEST time at the HIGHEST price to avoid legal complications for re-possessed vehicles. That is to say, if they sell too low, they have to justify that they have done their own due diligence to ensure that it was the best price given that price and open market auctions would justify that part. For everyday that the vehicle is NOT SOLD, the ex-owner will be liable to pay for the parking and maintenance fee (about $20-80 a day!!! depending on models).

 

ic ic

thanks for the info

really open up my ideas for auction cars

[Carcuter88]

New batch added man!

 

Even got a 2008 Mercedes-Benz E200K.

 

http://www.sgcarmart.com/used_cars/listing...DESC&CAT=15

 

 

[Ah_dude]

1 of the major problem for us is cash. We need to settle the full amount in a few days after successful.

If I am not wrong, you can bid at any price, even below the deregistered value.

 

 

yeah..but they wont accept lower than deregistered I believe....as that the minimum they cuold get back from LTA is they deregisterd....so why shld they accept lower than deregistered value bid ?

 

cash is a problem for private buyer...but if private buyer got the $$$ and can pay FULL....do they need to go for auction car ? Yes and No I would say...

 

 

[Sohboonguan]

eh.. i mention individuals bid absurd is because individuals here are saying is hard to get an auction car.

 

and to the other highlighted point........ i was talking about 2nd hand car.... piangz eh....... since when i mention new.... aren't you paying more for the car even then an auction repossesed car (most of the time not always... must be uber specific before you anyhow think again..... )

 

Ok, i must have missed that out...

second hand car then...

you are right then...

Auction's Car and Dealer's Second Hand Car stand almost same...

But i think Auction should be cheaper than Second hand car...

And Second car should be cheaper than new car...

and i mean by monthly installment...

New car got warranty

Second hand normally fixed up...

Auction car no waranty or assurance of any sort...

 

If i get an auction as as market price on par with second hand...

and fork out additional cost for touch up and fixing what ever problem...

I rather dealer get it, fixed up then sell me... at market price...

 

My point is there should be a buffer in between auction and second hand car price...

therefore:

Price: New car > Used car > Auction car

 

I apology for my mistake about the new car thingy...

Sorry pal...

Edited March 24, 2010 by Sohboonguan

[Kelvin1512]

these cars are sold as they are. nobody knows if they are lemons. can't even test drive.

 

the winning bids are often ridiculously high, might as well choose other used cars that you can test drive, examine and send for assessment.

 

anyway, i think the dealers have their means to win the bid if they really want it. don't bother.

 

 

Agree!!! the winning bids are insanely high. Impossible to win at auctions. I suspect its confirmed kelong... No reason how come only dealers get to win but individuals never win at all.

 

Anybody here agree that the auctions are kelonged?

[Little_prince]

yes....