COE Bidding – 2nd Round of September 2018

[awhtc]

If LCR starts scrapping now, Cat A quota will continue to increase in early 2019 and forces Cat A to drop to about $20-25k.

[aprilfool22]

If LCR starts scrapping now, Cat A quota will continue to increase in early 2019 and forces Cat A to drop to about $20-25k.

 

a fren of mine renewed his Stream in Feb this year, PQP 50,578

 

if say before Feb 19

 

PQP for Cat B drop to 25k

 

it make sense for him to scrap his Stream instead

 

cos his car ARF is 10k

 

LTA will refund him 45k

 

minus his car body 10k

 

he can still get back 35k and doesnt lose that much

 

am I correct to say that

[Chongster]

If LCR starts scrapping now, Cat A quota will continue to increase in early 2019 and forces Cat A to drop to about $20-25k.

If that happens frankly they should hold back most of the released COEs and even out the supply during the drought years... it’s crazy if they don’t take active steps to moderate the supply curve when they could

[awhtc]

The lower the COE goes, the greater the difficulty of LCR in selling off its balance stock.

 

It is possible for LTA to moderate the release of over 2-3 quarters quota.

 

An extra 10,000 or even 5,000 Cat A COE is difficult for the market to absorb within 6 months but it makes sense for LCR to scrap its cars asap to get back as much as possible.

 

The general trend will be even lower Cat A COE prices in 2019 since LCR intends to scrap rather than resell the stock.

[13177]

PHV drivers criteria has got stringent.

Less and less drivers available, so need so many cars for what?

 

Might as well sell to the public to recoup the losses. 

But the price they are selling to public not say very attractive. Although many of these cars might not even have used before.

[Ben5266]

a fren of mine renewed his Stream in Feb this year, PQP 50,578

 

if say before Feb 19

 

PQP for Cat B drop to 25k

 

it make sense for him to scrap his Stream instead

 

cos his car ARF is 10k

 

LTA will refund him 45k

 

minus his car body 10k

 

he can still get back 35k and doesnt lose that much

 

am I correct to say that

in my opinion, should be this.

 

He paid PQP $50k.

If scrap after 1 year, take back $45k.

PARF $10. If scrap, gone.

Body.... depending on luck. Unlikely $10k. $1k should be happy already.

So, his "depreciation" for that 1 year of use is about $14k.

 

The rule of thumb, as long as the current COE is >$15k lower than the PQP we paid, it made sense to scrap the car and COE and get a new car. 

Provided got cash.

 

Your friend is surely has hit the triggering zone by now.

But don't jump in yet. The COE might drop further till end of the year.

If that happens frankly they should hold back most of the released COEs and even out the supply during the drought years... it’s crazy if they don’t take active steps to moderate the supply curve when they could

Why crazy?

Isn't it nice to have COE plunge to below $10k level and we all huat?

If govt intervene, it will be deem flipping prata.

Govt cannot suka suka change policy one lah.

[Ben5266]

But the price they are selling to public not say very attractive. Although many of these cars might not even have used before.

Ya, quite silly of them trying to hold back the cars.

 

Assuming their average COE is $50k. One month of COE "depreciation" is $400.

They have 15k cars of which, we assume 5k idle and need to get rid.

Meaning, they are losing $2 million a month by not selling the car.

[Ct3833]

Ya, quite silly of them trying to hold back the cars.

 

Assuming their average COE is $50k. One month of COE "depreciation" is $400.

They have 15k cars of which, we assume 5k idle and need to get rid.

Meaning, they are losing $2 million a month by not selling the car.

Ironically, just not too long in a recent few years ago, cars got snapped up like nobody business regardless of price but suddenly now nobody wants to buy those decent used cars. Edited September 26, 2018 by Ct3833

[yishunite]

But the price they are selling to public not say very attractive. Although many of these cars might not even have used before.

I agree but this is a case of the used car dealers ensuring they don't spoil market for their other cars. They're probably getting them much cheaper but then pricing them in line with all other cars so they move as slowly as those other cars. LCR needs to do a direct sale if they want to shift faster. If they sold them at $10k less or so it would have been attractive to me.

 

But it seems GoJek made a statement that suggested they would buy some of this fleet and make their physical entry sooner.

[BoneStock]

But the price they are selling to public not say very attractive. Although many of these cars might not even have used before.

 

Yes agree.  I went to view a few units of Mazda 3 with my friend.  Apr 2018 registered ones were going for $77k++.  The used car dealer even add in admin fee and stuff and buyer end up with a 2nd hand car even though they claim the car was never used before.

 

Frankly, I would go for Elantra which is cheaper and guaranteed 1st hand.

[13177]

Ya, quite silly of them trying to hold back the cars.

 

Assuming their average COE is $50k. One month of COE "depreciation" is $400.

They have 15k cars of which, we assume 5k idle and need to get rid.

Meaning, they are losing $2 million a month by not selling the car.

Maybe for them losing $2 mill a month is a small amount la.

[13177]

Yes agree.  I went to view a few units of Mazda 3 with my friend.  Apr 2018 registered ones were going for $77k++.  The used car dealer even add in admin fee and stuff and buyer end up with a 2nd hand car even though they claim the car was never used before.

 

Frankly, I would go for Elantra which is cheaper and guaranteed 1st hand.

For the price of $77k+, even the car never used before with mileage less than 50km, still not attractive esp you can find quite a nice and decent brand new cars from ADs in the market. Unless they are selling those cars much more lower than$77k, maybe i would not mind buying one. Lol.

[Mkl22]

If govt intervene, it will be deem flipping prata.

Govt cannot suka suka change policy one lah.

 

you new Singaporean ah?

 

when did the above never happen before. ?

[Matrix0405]

Yes agree.  I went to view a few units of Mazda 3 with my friend.  Apr 2018 registered ones were going for $77k++.  The used car dealer even add in admin fee and stuff and buyer end up with a 2nd hand car even though they claim the car was never used before.

 

Frankly, I would go for Elantra which is cheaper and guaranteed 1st hand.

 

That is wise choice. Deal with 2nd hand dealers mean have to deal with trickery. $77K for lowest spec + no warranty + 6mth  gone + maybe tricks = where is the deal?  

However, used cars are still selling higher than new cars on sgcarmrt, so the demand for them must be strong. 

[Ct3833]

.....

However, used cars are still selling higher than new cars on sgcarmrt, so the demand for them must be strong. 

precisely, i dont know who go and suck up those car. I heard people saying some who have lower upfront cash will go to 2nd hand car dealers because they can do magic loan, but how would there be so many people have insufficient upfront cash. I dont believe so. 

[DACH]

For the price of $77k+, even the car never used before with mileage less than 50km, still not attractive esp you can find quite a nice and decent brand new cars from ADs in the market. Unless they are selling those cars much more lower than$77k, maybe i would not mind buying one. Lol.

Wait for a few months and see.

Maybe they drop to around 60k range.

Maybe by then you can buy one and make your life better and more convenient, and will see you complain less here.

[Dafansu]

precisely, i dont know who go and suck up those car. I heard people saying some who have lower upfront cash will go to 2nd hand car dealers because they can do magic loan, but how would there be so many people have insufficient upfront cash. I dont believe so. 

 

possible a lot of buyers don''t have upfront cash looking at the enquiries from the dealers Facebook pages. Also 10 years back 0% down payment and 10 years loan right, the same group of buyers may have to come out with a lot of cash this time round.

[Ct3833]

possible a lot of buyers don''t have upfront cash looking at the enquiries from the dealers Facebook pages. Also 10 years back 0% down payment and 10 years loan right, the same group of buyers may have to come out with a lot of cash this time round.

I agree there might be some who are cash tight but to find 10 thousands to 20 thousands of these buyers to take up those used cars sounds impossible.