Changing cars? - COE prices 19-Oct 2011
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Re: Changing cars? - COE prices 19-Oct 2011
I don't know how I am seeing this but if AD's continue to quote cars maintaining their current profit margin, I think the drive in COE price will only hurt and slow down their sales further.
I have yet to see any AD in Singapore for any car make take advantage of the high coe by adding value to their dealership in the form of discounts, rebates, freebies, etc.
It is just the same as you were buying a car 3 years ago when COE was low. I don't think they can afford to continue doing things now. Look at Mazda Singapore. Their dealership called it quits after their inability to sustain sales and overheads owing to the high COE's. I feel that a price correction has to be done across the board for all cars seeing that continental cars in particular distrubuted by AD's have particulalrly low OMV's and a ridiculous sale price. 3 years ago when the OMV was higher with the stronger Euro, even then prices were what were considered "reasonabale".
I don't know how I am seeing this but if AD's continue to quote cars maintaining their current profit margin, I think the drive in COE price will only hurt and slow down their sales further.
I have yet to see any AD in Singapore for any car make take advantage of the high coe by adding value to their dealership in the form of discounts, rebates, freebies, etc.
It is just the same as you were buying a car 3 years ago when COE was low. I don't think they can afford to continue doing things now. Look at Mazda Singapore. Their dealership called it quits after their inability to sustain sales and overheads owing to the high COE's. I feel that a price correction has to be done across the board for all cars seeing that continental cars in particular distrubuted by AD's have particulalrly low OMV's and a ridiculous sale price. 3 years ago when the OMV was higher with the stronger Euro, even then prices were what were considered "reasonabale".
Re: Changing cars? - COE prices 19-Oct 2011
its not that simple. AD take a risk...when selling a car. sure they can say ok i make less n maintain prices. but why shud they? dun forget everyone sells a car on gteed COE now. no reason for them to compete on margins yet. at least not for the likes of bmw n mercs n audi. its really demand supply nothing else.
satinGHOST|r!der;694112 said:
its not that simple. AD take a risk...when selling a car. sure they can say ok i make less n maintain prices. but why shud they? dun forget everyone sells a car on gteed COE now. no reason for them to compete on margins yet. at least not for the likes of bmw n mercs n audi. its really demand supply nothing else.
Ahwing
Well-Known Member
Re: Changing cars? - COE prices 19-Oct 2011
read the CNA report that on yday coe no doubt government is cutting the supplies of coe, but that doesnt mean that coe will continue to go up as it also depends on the deregistration of cars.
I disagree with this statement, with growth of coe getting lesser why will there be an increase in deregistration of cars? Wont pple more likely to hang on to whatever they have?
In addition, traffic condition in sg is not improving but will only get worse. Govt spend so much money to open circle line, square line, triangle line, rectangle line. They want you to use it, and not continue to buy buy buy cars and jam up the small city.
My conclusion, one way north.
Ps, just trying to justify me buying car at all time high coe..
read the CNA report that on yday coe no doubt government is cutting the supplies of coe, but that doesnt mean that coe will continue to go up as it also depends on the deregistration of cars.
I disagree with this statement, with growth of coe getting lesser why will there be an increase in deregistration of cars? Wont pple more likely to hang on to whatever they have?
In addition, traffic condition in sg is not improving but will only get worse. Govt spend so much money to open circle line, square line, triangle line, rectangle line. They want you to use it, and not continue to buy buy buy cars and jam up the small city.
My conclusion, one way north.
Ps, just trying to justify me buying car at all time high coe..
Re: Changing cars? - COE prices 19-Oct 2011
That's true but if that's the case, then I guess that the guaranteed COE thingy outweighs the fact that the COE is at all time high. Infact, some are already starting to quote without COE and even that is already high given the OMV. That's the comparison I am talking about. Sure I agree that the guarantee COE is a deal breaker given that the quota has been cut to an extent that prices are exaggerated. Perhaps the expectations of the public is that COE prices are here to stay and/or increase for a while and hence are still shopping for cars. So in other words, LPPL!!!
totoseow;694149 said:
That's true but if that's the case, then I guess that the guaranteed COE thingy outweighs the fact that the COE is at all time high. Infact, some are already starting to quote without COE and even that is already high given the OMV. That's the comparison I am talking about. Sure I agree that the guarantee COE is a deal breaker given that the quota has been cut to an extent that prices are exaggerated. Perhaps the expectations of the public is that COE prices are here to stay and/or increase for a while and hence are still shopping for cars. So in other words, LPPL!!!
Re: Changing cars? - COE prices 19-Oct 2011
there will be a point when coe tops out..n car prices top out. the free mkt will find its own equilibrium. i think its pretty pointless to speculate so long as the parameters r always being moved, we will never kow where coe will settle. happy happy cut quotas..only mean one thing.
there will be a point when coe tops out..n car prices top out. the free mkt will find its own equilibrium. i think its pretty pointless to speculate so long as the parameters r always being moved, we will never kow where coe will settle. happy happy cut quotas..only mean one thing.
Re: Changing cars? - COE prices 19-Oct 2011
I mean these are all just opinions and speculations. Forces of Demand And Supply ultimately decides equilibrium price. I also think it's a matter of exhaustion of the car buyers on the issue of car prices and COE.
totoseow;694169 said:
I mean these are all just opinions and speculations. Forces of Demand And Supply ultimately decides equilibrium price. I also think it's a matter of exhaustion of the car buyers on the issue of car prices and COE.
kuvesh
Well-Known Member
Re: Changing cars? - COE prices 19-Oct 2011
if i was a dealer, your need to reconsider profit margin for mid-market cars. i would imagine the majority of the car buyers in this bracket are very price sensitive. the higher the coe goes, the less volume will move. decision needs to be made about lowering profit margin and move more volume.
i am not an expert on on omv / coe etc, but i think the price disincentive of higher coe these days is much greater than it was 10 years ago under the old system where scrap value at 5 years were significantly higher and a reasonable export market existed.
if i was a dealer, your need to reconsider profit margin for mid-market cars. i would imagine the majority of the car buyers in this bracket are very price sensitive. the higher the coe goes, the less volume will move. decision needs to be made about lowering profit margin and move more volume.
i am not an expert on on omv / coe etc, but i think the price disincentive of higher coe these days is much greater than it was 10 years ago under the old system where scrap value at 5 years were significantly higher and a reasonable export market existed.
DrK
Well-Known Member
Re: Changing cars? - COE prices 19-Oct 2011
I like this idea. If the govt really cares about car population, they should go for this. But no, they care more about their fat wallets depleting from lack of new car buyers. This COE mess is for our own good. REALLY MEH transport minster?????
kenntona;694153 said:
I like this idea. If the govt really cares about car population, they should go for this. But no, they care more about their fat wallets depleting from lack of new car buyers. This COE mess is for our own good. REALLY MEH transport minster?????
Re: Changing cars? - COE prices 19-Oct 2011
If COE $75K is to be paid in cash, many cars will have no buyer. Imagine a $150K car with COE payable only in cash......... cars are no longer affordable to the masses.
Then again, this means zheng hu's income will shrink.
You combine this with progressively exponentially high ERP on second car used concurrently with first from the same household (example if both cars are on the road, second car pays a bomb for using ERP), the roads will be empty. First car $2 second car $20.......
Then you combine with 6 points plus $200 fine for roadhogging on first and second lanes on expressways....... walan, the roads will be clear......
Of course there is a difference.totoseow said:
If COE $75K is to be paid in cash, many cars will have no buyer. Imagine a $150K car with COE payable only in cash......... cars are no longer affordable to the masses.
Then again, this means zheng hu's income will shrink.
You combine this with progressively exponentially high ERP on second car used concurrently with first from the same household (example if both cars are on the road, second car pays a bomb for using ERP), the roads will be empty. First car $2 second car $20.......
Then you combine with 6 points plus $200 fine for roadhogging on first and second lanes on expressways....... walan, the roads will be clear......
