Prices of New & Used cars rise after Surge in COE Premiums - 11 Dec 10

[Mdm Tang]

.


bros , my 2006 BMW is now finally in the money

should i sell my car or hold on for more profit ??? :(:(:(



.

http://www.channelnewsasia.com/stories/singaporelocalnews/view/1098638/1/.html

.

Title : Prices of New & Used cars rise after Surge in COE Premiums - 11 Dec 10


By : Liang Kaixin


Date : 11 December 2010 2304 hrs (SST)



URL : http://www.channelnewsasia.com/stories/singaporelocalnews/view/1098638/1/.html


SINGAPORE: Prices for both new and used cars have gone up, following the surge in COE premiums to 10-year high recently.

Prices of new cars rose 10 percent while second-hand cars are S$3,000-S$8,000 more expensive than before the results of the latest round of COE bidding were announced on 8 December.

COE premiums skyrocketed in the latest round of bidding, with a staggering jump of S$14,612 for cars over 1,600cc. This brings the total premium for that category to S$62,502.

Prices for the Open Category was up S$15,010 to S$64,900. For smaller cars 1,600cc and below, the COE price rose S$8,604 to S$47,604.

These latest COE prices are the highest since 2000.

Following the COE price surge, dealers of new cars see less business over the last few days.

They say the price of big cars is now up by about S$15,000, while small cars are costing some S$9,000 more.

Dealers say the sudden surge in prices has had a huge impact on customers but they believe business will bounce back.

Dexter Tang, manager of sales & operations at Prime Cars, said: "We need time for the customers to digest and accept the price but for consumers who are thinking of buying cheaper cars, I think that is history already. From now on I think the price will be stable or moving upwards."

With the impending cut to the COE supply next year, dealers say premiums may go even higher.

They say some customers may view small cars as having less resale value than big cars, should COE premiums rise further.

Meanwhile, business at second-hand car showrooms is looking good. Motorists may save S$20,000 to S$30,000 if they opt for a used car.

Generally, the used car industry saw business double this October compared to the same month last year.

"Nowadays we can see more people are selling, trading in their cars when they buy a used car....I think that's because more people are focusing themselves on the used car market," said Raymond Tang, honorary secretary of Singapore Vehicle Traders Association.

- CNA/ir



.

 

[johnny333]

Sell & join others in the MRT sale

I bet they'll try to compensate the lost income from other places like ERP, parking & speeding fine, parking charges,....

 

[Mdm Tang]

.


tks bro



http://www.channelnewsasia.com/video/index.php



.

 

[diversifyx2]

Unless you decide to downgrade to smaller or jap car or merc bus

 

[Watchman]

COE hit 60 K

 

[Mdm Tang]

.




coe hit $70k



Business Times - 22 Dec 2010





Shell-shocked distributors await today's COE bidding



They expect rivals to bid strongly; not all dealers are afraid of higher premiums

By SAMUEL EE

(SINGAPORE) COE premiums should stay flat or rise slightly in today's final tender for the year, say some shell-shocked motor distributors, who expect a couple of their competitors to continue bidding strongly to fulfil back orders.

'Our showroom has been quiet since the last tender,' says one senior manager of a popular make of car with a sizeable showroom in the Leng Kee Road motor belt. 'We are not the only ones who were shocked by the COE increases.'

In the bidding exercise for certificates of entitlement (COEs) a fortnight ago, passenger car COE premiums skyrocketed to 13-year highs, with Category A - for cars under 1,600cc - jumping $8,604 to $47,604, while Category B - for cars above 1,600cc - soaring $14,612 to $62,502. Cat E - the open category - surged $15,010 to $64,900.

Dealers and buyers were stunned not only by the new heights reached but also by the sharpness with which they rose. Even immediately after a freak result, such as a $2 Cat A COE in November 2008, or the $200 Cat B COE in January 2009, premiums have not risen as significantly in recent memory.

'It was a perfect storm of stiff competition, shrinking quota and strong economy,' says the boss of a premium dealership. 'Everyone expects the COE quota to be cut from February, and the consumer wants to get a car now, either because he is afraid premiums will go higher or because he wants a new car for the Chinese New Year, or both. As for distributors, they have to do some window dressing before the year-end, so everyone just went for it.'

As a result of the sharp increases, consumers in general seem to have given car showrooms a wide berth over the past two weekends.

'I had to look twice at my neighbour's showroom the other day just to make sure it was open and not closed,' says a sales manager half in jest. 'The parking lot was almost empty.'

But he adds that fewer new orders collected over the past fortnight may not lead to lower premiums today.

'I know for a fact that one of the big Cat A players has not secured COEs for half of the orders they had two weeks ago,' he explains. 'And a couple of Cat B distributors will also need to pick up some too.'

The distributor of one European make disagrees that all showroom traffic had virtually disappeared. In fact, he welcomes the higher COE premiums because he says they make his slightly more high-end brand more attractive.

'We still had a few customers coming in soon after the last bid results,' he says. 'These are the serious buyers.'

He says having more upmarket customers has helped his sales, as has the foreign exchange rate.

'Those who are eyeing our cars can afford the COE price increases. And with the euro being more competitive than the yen, we have more room to manoeuvre financially,' he explains.

'So while most prospective buyers are holding back because of the high COE premiums, there have been some new orders for those makes at the upper end of the segment. Where premiums are headed today depends on whether these new orders are enough to push them higher than what they are currently,' he says.

He adds: 'And don't forget the taxi companies. Once they go in and start bidding, Cat A will not fall.'


Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.

 

[Mdm Tang]

.


Title : COEs for big cars & open category surge



By : By Wayne Chan | Posted: 22 December 2010 1645 hrs


Date : 22 December 2010 1645 hrs (SST)



URL : http://www.channelnewsasia.com/stories/singaporelocalnews/view/1100631/1/.html



SINGAPORE : COE prices for big cars and open category continued to surge in the latest bidding exercise that ended on Wednesday after hitting 13-year highs recently.

The COE premiums for the Open Category rose a hefty S$11,202 to S$76,102, while the COEs for cars over 1,600cc increased S$9,499 to S$72,001.
For cars 1,600cc and below, the COE price moved down S$1,475 to S$46,129. The COE premiums for goods vehicles and buses increased by S$1,500 to S$33,501, while those for motorcycles were down S$150 to S$1,551.

COE prices have been going up since the start of the year, leading to empty showrooms.

Premiums were below S$20,000 in January, but industry players expect COE prices to head higher, especially for the small car category.

Ron Lim, general manager, Sales & Marketing, Tan Chong Motor Sales Pte Ltd, said: "There's a chance of it hitting close to about S$50,000.

"... Taxi companies are also competing in the category - for those that are intending to expand their fleet. I think news is already out that some of the taxi companies are intending to expand their fleet to cater to the higher demand, more because of tourists."

The big car category is also expected to see higher COE premiums ahead.

Market watchers pointed to a confluence of factors - stiff competition, shrinking quota and a strong economy - for the higher premiums.

Geraldine Lim of Hybrid Motors said the strong demand was "because of the festive season. People are still buying, they are saving up just in case in February the COE is going to jump further."

Many expect another round of quota cuts in February. This is likely to drive premiums even higher, as much as S$100,000 for the big car category, said Ms Lim.
COE premiums for the two car categories as well as the open category are now between 2.4 and almost four times what they were in January.

Even now, COEs are at 13-year highs and if the trend continues, some segments of the car market will feel more of the impact than others.

Sebastian Sim, sales manager at Kia Motors, said: "The mass market segment because of the base price of the car - let's say a 50,000-dollar car, a 10,000-dollar increment in COE will place a big percentage on the car price.

"Let's say 10,000 dollars out of a base of 50,000 for that car would be 20 per cent. Therefore, I think the cheaper cars will be affected."

Perhaps the only group of dealers who are not as affected are those dealing in luxury cars. They say their customers have deeper pockets.

"For this type of customer, they are more willing to fork out the money, rather than a simple means of transportation," Mr Ron Lim said.

And it looks like with higher COEs, those in the industry say marketing promotions will become more aggressive.

Some dealers say to manage the situation for next year, they will focus on the commercial car market, where the COE prices are more stable.

- CNA/al










.

 

[silverfox@]

COE peak in the past I think have $110K. So if you buy a car that cost $60K, Total $170K. 1 pc of paper double of car price. No wonder car manufacturers all scratching their head. They have to assemble car, make car, sell car and earn $60K. Singapore govt print 1 piece of paper sell for almost double.

This one who see also will dulan.

 

[silverfox@]

.


bros , my 2006 BMW is now finally in the money

should i sell my car or hold on for more profit ??? :(:(:(

You sell your 2006 BMW, profit from it then you can take your next BMW.

Bus, Mrt, Walk.

 

[Ramseth]

bros , my 2006 BMW is now finally in the money

should i sell my car or hold on for more profit ??? :(:(:(

The high may be in January. If you sell, we can take MRT together to Kranji together.

 

[Mdm Tang]

.


i do car pool mah ....



.


Singaporean very enterprising leh :


a ) they trade their HDB flats until cannot trade ;

now


b) they trade their used cars ; car agents

already calling my friends who purchased their

new cars in the 1st half of this year and

offering them good buy back price



.


Parallel importers see drop in business due to high COE prices



By : By Evelyn Lam Li Ting | Posted: 22 December 2010 2019 hrs



Date : 22 December 2010 2019 hrs (SST)


URL : http://www.channelnewsasia.com/stories/singaporelocalnews/view/1100652/1/.html

SINGAPORE : The skyrocketing COE prices have hit parallel importers hard.

They are reporting 30 to 50 per cent drop in business.

Parallel imports - which are cars brought into the country legally, but without the agreement of the manufacturer - enjoyed brisk sales between 2004 and 2006 when COE prices were low.

Reports said the boom year in 2006 saw total sales of more than 16,000 units or about 13.8 per cent of all new cars registered that year.

These days, companies dealing in parallel imports are forced to diversify to survive.

And one company has turned to the business of rentals.

"Wedding rental, limousine rental, common rental or exotic car rental - these will help us to cushion the loss in income on the retail side," said Jesse Tan, MD of Cars & Stars.

Tan said his rental business is up by some 20 per cent this year, and this has helped to keep his business afloat.

However, industry players said some smaller companies have folded because of their smaller market share.

For these companies, observers said they either have to scale back their business or cut down on the number of imports to bring down operating costs.

- CNA /ls

 

[Ramseth]

i do car pool mah ....

Then you pool me along. Just tell me the time and pickup point.

 

[Mdm Tang]

Then you pool me along. Just tell me the time and pickup point.

it has to be next month ( 2011 ) racing this year


in Singapore ended last sunday ...


sign in as owner's guests ...

 

[Ramseth]

it has to be next month ( 2011 ) racing this year


in Singapore ended last sunday ...


sign in as owner's guests ...

OK. I'm not a regular since it moved from Bukit Timah to Kranji, lost track. Remind me one or two days before race day.

 

[Mdm Tang]

OK. I'm not a regular since it moved from Bukit Timah to Kranji, lost track. Remind me one or two days before race day.

ok , will p.m. u.

 

[ivebert]

Only Sinkie idiots buy a Toyota for $70K

You can get one for $15K in US, about 1/5th of the price.

 

[Ramseth]

Only Sinkie idiots buy a Toyota for $70K

You can get one for $15K in US, about 1/5th of the price.

Only a Sinkie idiot like you think a Toyota costs only S$70k in Singapore. The COE already costs S$70k.

 

[ivebert]

Only a Sinkie idiot like you think a Toyota costs only S$70k in Singapore. The COE already costs S$70k.

So terrible. I am not Sinkie. It's the worst degratory term you can probably give me. :oIo:

So it's really $70K+%70K? Amazing, I can get 10 US toyotas here for 1 Sinkie toyota.
How about the COE now? Is it still $2 at most?

 

[shelltox]

that's why all the talents are at wall street, the nobel prize winners all at wall street inventing papers (derivatives) to sell to institutions all over. The 08 crash was by such products'

 

[gohsanho]

Another sign our infrastructure can not cope with the ft policy. We do not have enough land for ourselves and ft are squeezing in. They cause property price to go beyond reach and now car beyond reach.