COE Bidding – 1st Round of April 2019

[TeamAMG69]

The way this COE is regulated is like playing stock market.

 

yes, actually it does, if you follow / believe in the chart . the answer is there 

[cashcow]

actually anyway to see how many successful bids each AD / PI managed to secure?

 

is this information available to the public or kelong kept behind walls, so the mass market public wont know or see

 

the historical charts of COE (A, B , Open)  price movements are available online 

 

you can do your own Technical Analysis, it is actually very accurate (if you add in the trendline, MA, etc), very surprised nobody share or post the charts

 

Like meeting inside KTV  ? 

Tecnically the RSI, Stochastics and Macd etc are indicating bullish momentum.

 

Fundamentally, the LTA's announced reduction in coe supply is causing inequilibrium given better demand, blah blah, blah.

 

There are always bound to be differing views by different buying segments.

 

However the golden rule remains:- "The market is never wrong" 

 

 

[Tvios]

Good advise. This may be the last round that COE stay at this level. Coming next review there w be a big cut in the quota. Sometimes its good to be kiasu. But still do your sum wisely before heading to the car agents. Good luck on car buying!

 

Just some observations from my experience of buying more than a dozen new and used cars over the decades:

 

1. Don't chase price. Always ask about how much the AD will be bidding for COE. Verify what the rebate level is.

 

2. Ask for which models have guaranteed COE on-hand. ie. know when AD are clearing existing stock for the best deals.

 

3. Have you saved enough, and not rely on high car loan? Make sure you can afford it, not just seeking status and prestige.

 

4. Just like good stocks, buy when prices are going down, not chase when prices are going up. Impatience will mean you will continue to whinge and cry over bad decisions.

 

5. Never lust over any model of car. They are not limited editions. Thousands roll off the robot assembly lines daily.

 

6. A new car won't turn you into a better person. It only means you may turn grumpier and more anxious with a heavy debt for a liability.

 

7. It is true that the best extras and deals can be had when COE prices are very high. ADs hate high prices because fewer people can afford, and they still have to move and clear the stock.

 

[Privacy]

Haha agree fully buddy.

In SG, you drive for max 45 minutes at one go, how luxury and comfortable also no point. By the way, Merc and BM are the cars with most sales. Why bother buying and driving such common cars.

 

P.S. I am not salty. I drive a new Toyota with no loan. Want to buy any conti also no issue

 

i also bought my toyota new car with full cash but i dont say things like "buy any conti also no issue" because i know i cannot afford full cash brand new bentley, rolls royce, ferrari, lambor etc etc....the list goes on...

 

be abit more humble la...

Edited April 6, 2019 by Privacy

[Julian1014]

Google "lta reg car by make 2019" and view the chart for main COE contributor.

i also bought my toyota new car with full cash but i dont say things like "buy any conti also no issue" because i know i cannot afford full cash brand new bentley, rolls royce, ferrari, lambor etc etc....the list goes on...

 

be abit more humble la...

Toyota so good can allow full cash upfront.. like that thier SE seems well paid.

[ppanamera]

i also bought my toyota new car with full cash but i dont say things like "buy any conti also no issue" because i know i cannot afford full cash brand new bentley, rolls royce, ferrari, lambor etc etc....the list goes on...

 

be abit more humble la...

Yea.agreed. Furthermore, being able to buy with full cash doesn't mean much. It can mean one cannot get a higher return than your car loan.

In fact, I think it is not hard to beat below 2% return rate. My loan is 1. 88%.

 

For a very thoughtless investment plan, one can take minimum loan to enjoy the rebates while using the excess to purchase the singapore saving bonds for 2.1 to 2.3% return.

[ppanamera]

Tecnically the RSI, Stochastics and Macd etc are indicating bullish momentum.

 

Fundamentally, the LTA's announced reduction in coe supply is causing inequilibrium given better demand, blah blah, blah.

 

There are always bound to be differing views by different buying segments.

 

However the golden rule remains:- "The market is never wrong"

 

ðâð

I don't use indicators since they are not readily available for Coe prices. Just judging from price pattern and unfilled quota.

 

But like shares, I don't think we should strive to catch the falling knife.

actually anyway to see how many successful bids each AD / PI managed to secure?

 

is this information available to the public or kelong kept behind walls, so the mass market public wont know or see

 

 

the historical charts of COE (A, B , Open) price movements are available online

 

you can do your own Technical Analysis, it is actually very accurate (if you add in the trendline, MA, etc), very surprised nobody share or post the charts

 

 

Like meeting inside KTV ?

You can refer to the first page.

 

The data for failed bids can be found.

[ktnpl]

Yea.agreed. Furthermore, being able to buy with full cash doesn't mean much. It can mean one cannot get a higher return than your car loan.

In fact, I think it is not hard to beat below 2% return rate. My loan is 1. 88%.

 

For a very thoughtless investment plan, one can take minimum loan to enjoy the rebates while using the excess to purchase the singapore saving bonds for 2.1 to 2.3% return.

The interest rate for 1.88% car loan is based on non-reducing principal hence the effective rate is actually double. If your investment do not earn more than 3.8% return or worse if the value nosedive, it will be a double whammy. Hence it is more prudent to use full cash if the car is bought with spare cash beyond the investment pool. It is all about balancing.

[ppanamera]

The interest rate for 1.88% car loan is based on non-reducing principal hence the effective rate is actually double. If your investment do not earn more than 3.8% return or worse if the value nosedive, it will be a double whammy. Hence it is more prudent to use full cash if the car is bought with spare cash beyond the investment pool. It is all about balancing.

That's true. Thank you.

 

It comes down to financial preference which is not the focus of this forum.

 

Personally, I prefer liquidity for investment.

[ktnpl]

When I bought my car 10 years ago, PML did not penalise car buyers for not taking loan. BMW became the best seller that year.

 

Forward 10 years, the table has turned. PML now requires car buyers to take loan but Kah Motor and Borneo Motors do not penalise the car buyers for paying full cash. Honda and Toyota are now the top volume sellers while BMW is languishing far behind in sales. Of course contributed by other strategic factors. The current focus for PML seems to be bigger margins rather than sales volume.

Edited April 6, 2019 by ktnpl

[ppanamera]

What is the penalty? Says a Series 3

[ktnpl]

What is the penalty? Says a Series 3

Need to take maximum loan to extend warranty to 5 years and enjoy "free" servicing for 5 years. I did not negotiate further as I went a few doors away to buy from a competitor.

Edited April 6, 2019 by ktnpl

[Laoren]

COE sure shoot sky high... 50k soon liao... more and more PHV demands.. 

[ktnpl]

5 Dislikes for COE Bidding – 1st Round of April 2019

Comment:

If u upfront have enough money for ssb and the interest is higher than car loan, it makes more sense to put in ssb.. Ssb will not nosedive

 

This anonymous forummer is thick in the head. I have already explained that the interest in SSB is half of the car loan interest rate. The actual car loan interest rate is 4%. How can it make more sense to put in SSB with interest rate of 2%.

 

Don't be fooled by "low" car loan interest rate which is very misleading. There is no free lunch.

Edited April 7, 2019 by ktnpl

[RogerNg_185295]

Yea.agreed. Furthermore, being able to buy with full cash doesn't mean much. It can mean one cannot get a higher return than your car loan.

In fact, I think it is not hard to beat below 2% return rate. My loan is 1. 88%.

 

For a very thoughtless investment plan, one can take minimum loan to enjoy the rebates while using the excess to purchase the singapore saving bonds for 2.1 to 2.3% return.

Now the loan interest rate is 2.48 per cent. Which instrument to invest in?

[freeFacts]

For those taking car loans, remember that effective rate is double what is advertised since the interest is front-loaded on the total amount loaned.

 

If you want to test yourself, go buy the equivalent amount (of the final price of the car model) in stocks and see if you can get 4-5% annual return consistently for 5 years first. Most average joe working adults overestimate their abilities to invest consistently.

 

Anyway, the best advice I ever got when buying liabilities like a new car, is to use the annual dividends from stocks for the monthly installments. eg. I get about 600 per month in dividends, so I limit my monthly car loan repayment to that amount, for a maximum of 4-5 years.

 

In this way, one can continue savings from wages, plus cash out some stocks when hit highs.

 

Remember, car is liability. Status and prestige factor increase is all in your head. Limit your exposure and let other people pay your loan installments.

[Ody_2004]

 

Don't be fooled by "low" car loan interest rate which is very misleading. There is no free lunch.

 

 

think maybe they don understand compounded interest rate..

 

example $100,000 @ 1,88% for 7 years effective interest rate is 13.16%..

[Privacy]

For those who understand, ssb also doesn't have duration risk as you can withdraw full amount with interest the following mth. 2sgd charge of course unless you work for local banks which my frds said are waive as part of staff benefits.