Munich Automobiles- getting from bad to worse
- Thread starter masschaoz
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chongster
Well-Known Member
Re: Munich Automobiles- getting from bad to worse
From my understanding, if an open cat is used, the value used to calculate the rebate when you scrap the car is based on the lower of the COE value (of Open Cat or Cat B) on that particular bidding. So even by giving a higher valued open cat coe looks nice on the surface only (but in this case, it does contribute to 2k higher than the bidded COE that TS has). When it really comes to the numbers, the owner will still take the $$$ damage as COE will hold zero value in 10 years but OMV has retaining value.
I think for TS, as Cat B Coe is not transferable, MA is asking him to sign a form (write an appeal) to send to LTA to say that a mistake had been made in the bidding of the Cat B COE; thus LTA will refund the $10k deposit. In this sense, TS feels that there is no mistake made so why must he sign a document to tell LTA that he made a mistake in the bidding.
I also agree that TS OMV looks a wee bit too low and will make his car uncompetitive in the Singapore used car market.
From my understanding, if an open cat is used, the value used to calculate the rebate when you scrap the car is based on the lower of the COE value (of Open Cat or Cat B) on that particular bidding. So even by giving a higher valued open cat coe looks nice on the surface only (but in this case, it does contribute to 2k higher than the bidded COE that TS has). When it really comes to the numbers, the owner will still take the $$$ damage as COE will hold zero value in 10 years but OMV has retaining value.
I think for TS, as Cat B Coe is not transferable, MA is asking him to sign a form (write an appeal) to send to LTA to say that a mistake had been made in the bidding of the Cat B COE; thus LTA will refund the $10k deposit. In this sense, TS feels that there is no mistake made so why must he sign a document to tell LTA that he made a mistake in the bidding.
I also agree that TS OMV looks a wee bit too low and will make his car uncompetitive in the Singapore used car market.
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Is OMV stated in contracts with PIs?Re: Munich Automobiles- getting from bad to worse
Any logical business reason for MA to use a higher priced open cat COE to register the car when they have obtained the lower priced cat B COE? Second letter states that it's MA's mistake, not TS's.chongster;689629 said:
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chongster
Well-Known Member
Re: Munich Automobiles- getting from bad to worse
this i would agree with you. Make no biz sense and wld applaud MA in trying to make up for a low OMV with a slightly higher COE. End of day, it is TS decision on whether a slightly higher COE can defray the lower OMV that he has.
I am not sure what is the ballpark OMV for MA's E92 as this information is not available on One Motoring and a check on sgcarmart has quite a wide range. I can only say that my OMV of my MA E92 is much more than TS.
Well, I just hope that both parties can come to a conclusion that both can accept
bm323;689633 said:
this i would agree with you. Make no biz sense and wld applaud MA in trying to make up for a low OMV with a slightly higher COE. End of day, it is TS decision on whether a slightly higher COE can defray the lower OMV that he has.
I am not sure what is the ballpark OMV for MA's E92 as this information is not available on One Motoring and a check on sgcarmart has quite a wide range. I can only say that my OMV of my MA E92 is much more than TS.
Well, I just hope that both parties can come to a conclusion that both can accept
Re: Munich Automobiles- getting from bad to worse
Very interesting thread.
A very important point to note please. BMWs sold by ADs in Singapore are imported by BMW ASIA. They are the people who provide the invoice value, etc which will eventually determine the OMV of our cars. There was a Straits Times article some months ago regarding this. I believe LTA is currently looking into this although no particular Company was named.
Therefore, people; MA and/or PML are not to be 100% blamed for this low OMV thing. Its sad that we, as consumers are duped by the importers and our GOVERNMENT does too little to assist us but instead, grant tax concessions to these importers which in turn encourages them to further lower the invoice values. Vicious cycle, but nothing can be done if the importer and exporter are the same company.
Very interesting thread.
A very important point to note please. BMWs sold by ADs in Singapore are imported by BMW ASIA. They are the people who provide the invoice value, etc which will eventually determine the OMV of our cars. There was a Straits Times article some months ago regarding this. I believe LTA is currently looking into this although no particular Company was named.
Therefore, people; MA and/or PML are not to be 100% blamed for this low OMV thing. Its sad that we, as consumers are duped by the importers and our GOVERNMENT does too little to assist us but instead, grant tax concessions to these importers which in turn encourages them to further lower the invoice values. Vicious cycle, but nothing can be done if the importer and exporter are the same company.
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masschaoz
Well-Known Member
Re: Munich Automobiles- getting from bad to worse
yes I'm aware of this matter which is why I'm getting my resources to assess this low OMV issue by highlighting it to LTA to investigate as well. Things can be done, its a matter of effort. My huge amount of anger is hopefully sufficient to fuel this effort.
edleee;689717 said:
yes I'm aware of this matter which is why I'm getting my resources to assess this low OMV issue by highlighting it to LTA to investigate as well. Things can be done, its a matter of effort. My huge amount of anger is hopefully sufficient to fuel this effort.
Re: Munich Automobiles- getting from bad to worse
One of the forummers told me that BMW Asia is being investigated for something abt the low OMV which they are making a gain on and transferring the money back to Germany. Not sure to what extent it's true but could be one of the few LTA is investigating according to the straits times news a few months ago...
masschaoz;689761 said:
One of the forummers told me that BMW Asia is being investigated for something abt the low OMV which they are making a gain on and transferring the money back to Germany. Not sure to what extent it's true but could be one of the few LTA is investigating according to the straits times news a few months ago...
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Re: Munich Automobiles- getting from bad to worse
Lip service only.
BMW Asia are the importers of BMW, BMW M, MINI and RR and later on, the BMW-i.
If they had any fear of LTA or Customs taking action, the OMVs would surely creep northwards. Why then, even after the Straits Times article, have BMW OMVs not gone up. Okay; I realize its not wise to have sudden upward movements in OMVs for current models lest they expose themselves, but run a check on the new 6 cab and upcoming 6 coupe and you will realize that they are keeping ever so cool on these so called investigations.
What LTA and Customs fail to collect from the importers, they collect from the consumers via the COE route.
satinGHOST|r!der;689774 said:
Lip service only.
BMW Asia are the importers of BMW, BMW M, MINI and RR and later on, the BMW-i.
If they had any fear of LTA or Customs taking action, the OMVs would surely creep northwards. Why then, even after the Straits Times article, have BMW OMVs not gone up. Okay; I realize its not wise to have sudden upward movements in OMVs for current models lest they expose themselves, but run a check on the new 6 cab and upcoming 6 coupe and you will realize that they are keeping ever so cool on these so called investigations.
What LTA and Customs fail to collect from the importers, they collect from the consumers via the COE route.
Solidgold
Well-Known Member
Re: Munich Automobiles- getting from bad to worse
Why we end up having "fluctuating" OMVs is because the meaning of OMV no longer applies when the importer is the manufacturer. OMV, (Open Market Value) as the term implies the sale value or street price of the vehicle in the exporting country. It is not cost price or material cost of the the vehicle.
An importer (some years back) is an agent, local distributor or dealer who does not have direct dealings with the plant. They need to buy from an exporter(distributor) and thus the term OMV was coined.
So for vendors importing vehicles directly from their plant, what is the meaning of OMV then? So this outdated term OMV has to change to have a level playing field in the market place.
Why we end up having "fluctuating" OMVs is because the meaning of OMV no longer applies when the importer is the manufacturer. OMV, (Open Market Value) as the term implies the sale value or street price of the vehicle in the exporting country. It is not cost price or material cost of the the vehicle.
An importer (some years back) is an agent, local distributor or dealer who does not have direct dealings with the plant. They need to buy from an exporter(distributor) and thus the term OMV was coined.
So for vendors importing vehicles directly from their plant, what is the meaning of OMV then? So this outdated term OMV has to change to have a level playing field in the market place.
wt_know
Well-Known Member
Re: Munich Automobiles- getting from bad to worse
BMW's car OMV for BMW ASIA as sole importer is something like "internal cost transfer", which they can "price" it anyway they want?
If that is the case, what about Audi and Merc - are they competing in level playing field?
BMW's car OMV for BMW ASIA as sole importer is something like "internal cost transfer", which they can "price" it anyway they want?
If that is the case, what about Audi and Merc - are they competing in level playing field?
Solidgold;689836 said:
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