COE system being hijacked by dealers
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Dec 10, 2010 - ST Forum
THE current certificate of entitlement (COE) system is not working as it should because it has been hijacked by car dealers.
They have found it worthwhile to control the bidding system to their advantage. Let me explain:
Suppose a car dealer offers an all-inclusive price of $130,000 for a car. Included in this is an allowance of $40,000 for the COE, and the dealer ensures it does not exceed this budget.
If the dealer gets the COE for $35,000, it makes an extra $5,000 margin on the sale; there is no refund to the buyer as the agreement is that the COE price will have to drop much lower for a refund to kick in. If the premium goes above $40,000, the buyers are told to top up.
Thus, the dealers are in a win-win position, and that is why they are so eager to bid on behalf of buyers. The system as it currently is, is unfair to buyers, but it remains so for their 'bidding convenience'.
Doing away with dealer bidding will make a big difference. Currently, if a buyer bids for a COE himself and gets it, the dealer offers a different package that is disadvantageous to him. This will stop once dealers cannot bid any more.
Higher COE premiums will impact taxi fares too, which will increase sooner or later to cover increased rental costs due to the higher capital cost of taxi firms.
Chan Cheng Lock
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Never really tot of it this way but it makes a valid point.
Maybe the solution is to get buyers to buy their own COE. No more middlemen. Car dealers just sell cars. Full stop.
As long as you have checks in place so a buyer is limited to buying 1 COE within a given period and cannot easily transfer (so they can't speculate and buy and sell at a higher rate), maybe this will work>
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Nobody even questions why the hell we need a COE to drive a car in Singapore in the first place.
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u can bid on ur own. but some ppl wanna save the hassle so let the dealer do.
now alotta cars bundled with COE oredi
if they can afford a car, they sure can afford let the dealer earn some $ -
actually the margin of the dealer is quite clear..based on sgcarmart you can see the basic cost and the margin the dealer is making...
well it is business lor. they need to earn and we need to pay for the profit .. only how much you wanna let them earn lor.
look at komoco... the stupid avante margin is 33%...even the car is good, i turn off by the margin (speak for myself only)
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One more problem I can think of is there are more and more people in this country.
Demand for cars go up, supply of certificate of entitlement (Coe) remains the same, of course the COE price will go up. -
Originally posted by charlize:
Nobody even questions why the hell we need a COE to drive a car in Singapore in the first place.
Because Singaporeans are rich.
They are willing and able to fork out the money for high COEs to tell the world they are rich and able and willing to pay a lot more for a car.
It's a sign to tell car dealers and manufacturers that they can raise the prices of cars in Singapore and still get sales!
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Originally posted by FireIce:
u can bid on ur own. but some ppl wanna save the hassle so let the dealer do.
now alotta cars bundled with COE oredi
if they can afford a car, they sure can afford let the dealer earn some $
There were incident where the owner bidded for his own COE but no car dealer wants to sell him a car -
*face palm*
does he know how much did e govt cut the no of quotas? It's heading for 0 or negative car growth for the coming 5 years.
You expecting the spree of many many COEs to continue w/o jamming up the roads?
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Originally posted by charlize:
Nobody even questions why the hell we need a COE to drive a car in Singapore in the first place.
Cango back to the old days, road tax annual increment is tied to the % of car growth.
So you end up paying more and more road tax every year
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Originally posted by sbst275:
*face palm*
does he know how much did e govt cut the no of quotas? It's heading for 0 or negative car growth for the coming 5 years.
You expecting the spree of many many COEs to continue w/o jamming up the roads?
Now we need 0 or negative car growth I only
Previously, our Transport Minister said ERP helps Singaporeans own more cars.
So will it be ERP makes Singaporeans own less cars now? I only layman, cannot understand the chim chim statistics?
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Originally posted by eagle:
Now we need 0 or negative car growth I only
Previously, our Transport Minister said ERP helps Singaporeans own more cars.
So will it be ERP makes Singaporeans own less cars now? I only layman, cannot understand the chim chim statistics?
they're confused lot
I had knew from e beginning that ERP help ppl to own more car is waiting for disaster or sh!t to occur.
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For the current situation,
if you got your own COE, car dealers will DEFINITELY (or most of them) will sell you a car. Because the quota is so little now, even if the dealers bid for their customers, might not be able to secure any COE also. So, they will sell you a car to clear their inventory. It's expensive to hold on to inventory..
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time to get a motorcycle. currently motorcycle coe is arnd $1500, peanuts compared to the $45k for under 1.6l coe, and $70k for above 1.6l coe.
before long, we will turn into countries like vietnam where everyone cannot afford cars, so no choice but to own motorbike.
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It's not the dealers but the PAP gov tweaking the system to get more money.
Reduce supply and prices will soar.
Before the reduction in COEs, it was hovering around $10,000.
After the reduction in COEs, it has shot up to $60,000.
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To the super rich, there's no difference lah, they still buy Sports cars, Vintage cars and brand new Jaguars, Chrysler, Rolls Royce...etc
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Originally posted by sbst275:
Cango back to the old days, road tax annual increment is tied to the % of car growth.
So you end up paying more and more road tax every year
Look at it from this perspective:
The piece of paper known as COE that costs $70,000 is equivalent to you paying road tax for 35 years at $2K per annum (number used as an example - you can pluck in $3K or $4K road tax per annum). And this is an upfront payment.
And in spite of the existence of COEs, you still need to pay road tax annually.
No matter what the authorities say, this is revenue generating policy. Not a car population controlling policy.
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Originally posted by charlize:
Look at it from this perspective:
The piece of paper known as COE that costs $70,000 is equivalent to you paying road tax for 35 years at $2K per annum (number used as an example - you can pluck in $3K or $4K road tax per annum). And this is an upfront payment.
And in spite of the existence of COEs, you still need to pay road tax annually.
No matter what the authorities say, this is revenue generating policy. Not a car population controlling policy.
ah char ah charin Hong Kong you need to get a parking lot quota before buying a car...
The reason e quota is cut drastically because the whole mess blew in front of their face.
You sure they're not scared abt e cost of traffic jam? All these not $$ to them if you claim it's revenue generating engine.
Might as well you go on say why 30c per lit petrol tax? Since you're so good in conspiracy theory.
Also the road tax increment seems you've no idea. Back then no such thing of $874 per year. It only goes up and not down.
The whole idea is you use car, I tax you and e $$ is to be spent on MRT. As if the money came from e sky
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SGD 1.00 = HKD 5.988
Toyota Alphard (2.4L) Moonroof Hong Kong
Price= HKD 469,930 (SGD 78,478)
Private Car Park Rental (10 years) = HKD 980 - HKD 2,040 / month = HKD 1,510 / month (Average) = SGD 30,260 for 10 years
Total Cost = SGD 108,738
http://www.crown-motors.com/eng/price/images/Toyota%20Price%20List20091120%20MPVEng.pdf
http://www.housingauthority.gov.hk/en/aboutus/news/pressreleases/0,,2-0-21498,00.html
Toyota Alphard (2.4L) Moonroof Singapore
Price = SGD 203,488
HDB Car Park Rental (10 years) = SGD 65 - SGD 90 / month = SGD 77.5 / month (Average) = SGD 9,300 for 10 years.
Total Cost = SGD 212,788
http://www.toyotasingapore.com.sg/cars/new_cars/alphard/price.asp
http://www.hdb.gov.sg/fi10/fi10327p.nsf/w/CarPark1NewSP?OpenDocument#Charges
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Originally posted by βÎτά:
SGD 1.00 = HKD 5.988
Toyota Alphard (2.4L) Moonroof Hong Kong
Price= HKD 469,930 (SGD 78,478)
Private Car Park Rental (10 years) = HKD 980 - HKD 2,040 / month = HKD 1,510 / month (Average) = SGD 30,260 for 10 years
Total Cost = SGD 108,738
http://www.crown-motors.com/eng/price/images/Toyota%20Price%20List20091120%20MPVEng.pdf
http://www.housingauthority.gov.hk/en/aboutus/news/pressreleases/0,,2-0-21498,00.html
Toyota Alphard (2.4L) Moonroof Singapore
Price = SGD 203,488
HDB Car Park Rental (10 years) = SGD 65 - SGD 90 / month = SGD 77.5 / month (Average) = SGD 9,300 for 10 years.
Total Cost = SGD 212,788
http://www.toyotasingapore.com.sg/cars/new_cars/alphard/price.asp
http://www.hdb.gov.sg/fi10/fi10327p.nsf/w/CarPark1NewSP?OpenDocument#Charges
notice e car park rental. If you can't even purchase one at your place, you can't even buy a car.
As for COE, no one bids for a new car, no demand for $70k COE.
Dun tell me another 101 conspiracy theory
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To think abt it, these days at times you can be hearing one family owning 3 cars parking at some parking constrained condos and disputes occurs.
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oridi got ppl tender COE for trading
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Not enough money buy second hand cars lor...why buy brand new and kana COE...
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Originally posted by sbst275:
notice e car park rental. If you can't even purchase one at your place, you can't even buy a car.
As for COE, no one bids for a new car, no demand for $70k COE.
Dun tell me another 101 conspiracy theory
Geez!!! You are really something.
You don't have to buy a carpark lot just to buy a car, buying a carpark lot is for investment purposes. Where the owner of the lot can rent it out to a car owner to get returns.
Stop it with your every other person who has contrary ideas to you, which is not pro-PAP, will say this and that conspiracy, it's rather rancid coming from you.
$70k COE is because they cut the quantity of COE supplied by more than half. If you know Economics 101, a reduction in supply with demand held constant will drive up prices.
The figures for cost of car in Hong Kong and Singapore is provided above, if it's really cheaper to own a car in Singapore please provide figures to show us. Don't start with you this conspiracy theory and that conspiracy theory, have figures to substantiate your argument and not build your argument on air.
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Originally posted by Demon Bane:
Not enough money buy second hand cars lor...why buy brand new and kana COE...
Still cannot afford then buy third hand, fourth hand cars lor....Hahaha!
