How does COE price being determine?

[Bluepica]

I've searched LTA website but can't find any explanatory notes. I wonder has it been discussed before in this forum.

 

Actually how does the COE price being determine? I mean how do we know how much to bid and also what determine the final price for that round?

[Leepee]

Its a bidding process.

I call out $10,000

You call out $10,001. Then you will get the COE.

 

Very simple lah.

 

If its too much trouble, then do what 99% of car buyers do.

Pay the money to car dealears and let them do the bidding on your behalf, you save so much effort and end of day you will get your car without all the hassle of self-bidding.

If you bid for youself, you will be paying the same COE price to gov had you allow the car dealer to bid for you.

Edited May 22, 2008 by Leepee

[Zxcvb]

I've read it somewhere in some car forum, but somehow lost the thread. yeh, the official site don't really explain how they get to that COE price. can someone explain it in details and make it sticky?

[Nys75]

Eg:

Quota 2000; if bidder >2000, COE price will be the 2000th bidder price.

Likewise, if bidder <2000, maybe 1950. Then COE price will be the 1950th bidder price.

[Super410]

Correct me if I am wrong. :)

 

Reducing numbers to simplify COE allocation.

 

Let's said this month only 3 COE.

 

There are only 4 bidder namely A, B. C and D

 

A's Bid is S$1000

B's Bid is S$1100

C's Bid is S$1200

D's Bid is S$1300

 

Since there are only 4 bidder and there are 3 COE. The top three bidder will get the COE. So B, C and D will get their COE and the COE price is the lowest among the three aka S$1100. In short, even C and D bidder S$1200 and S$1300 respectively, their COE is still S$1100, the same as B.

[Nys75]

[Super410]

 

Just want to add and poor A did not get his COE and he got to try it again the next round.

 

[Sx4falcon]

If C & D bidded at the same amt 1200, then only A & B got the COE. 1 COE will be carry forward to next bidding.

[Zakkwylde]

But I don't understand why there was a time the COE price was just ard $100+ I think in 2001? Care to explain?

[Nys75]

Shld be A & B bidded at same amt, either 1000 or 1100, C & D got the COE @1200. 1 COE carried fwd.

 

Correct me if wrong.

[Nys75]

Becos last bidder was @100+.

Edited May 22, 2008 by Nys75

[Zakkwylde]

Dun they have a minimum raise amount for the option? If the last bidder was at $100+, then how much was the bid by the previous bidders? Since then why did the COE never ever go down to that range?

[Super410]

Same concept.

 

Reducing numbers to simplify COE allocation.

 

Let's said this month only 3 COE.

 

There are only 4 bidder namely A, B. C and D

 

A's Bid is S$1

B's Bid is S$10

C's Bid is S$100

D's Bid is S$1000

 

Since there are only 4 bidder and there are 3 COE. The top three bidder will get the COE. So B, C and D will get their COE and the COE price is the lowest among the three aka S$10. In short, even C and D bidder S$100 and S$1000 respectively, their COE is still S$10, the same as B. So alot depends on the bid price of the last successful COE aka B's bid price in this example.

Edited May 22, 2008 by Super410

[Zakkwylde]

But if there is no minimum cap in bidding why are the prices hovering in that range? They might as well gang up and evryone bid at a low price. So we dun have to pay higher COE prices...

[Super410]

I think nowadays most people knows the price range of the COE. So the price is hovering in a certain range.

 

Yes, you can gang up but how to with so many people wanting to outbid each other to get their COE?

[Leepee]

Human are greedy.

You think the few AD will happily gang up? They got ZERO to gain when they gang up.

As of now the COE quota are always not enough = more buyer than COE numbers.

 

So who doesn't want to sell more cars each month to make more profits?

 

Since we suckers are the one who are paying for the COE price, what is the incentives for AD to gang up to make COE lower?

 

Look at history...when COE was $60k to $100k, there are also car buyers willing to pay the $$$ amount to gov in order to register a car.

 

If everyone thinks the car package price is reasonable, then it means we are happy to pay whatever amount to gov for the COE price.

Worst are those who HAPPILY top-up the car price to secure their cars after 6bids, thinking they are smart to beat the COE system in the raising COE trend.

 

Its never the AD faults, its the buyers fault actually.

1) Being lazy to bid the COE ourselves, allowing the AD to proxy on our behalf.

2) Being kiasu to quickly book a car whenever a substantial news is released.

3) Being agreeable to the high profit margin and packaged selling price by PI/AD.

4) Being kiasu to pay more for guarantee COE package.

5) Being materialistic to want to show off new cars every Chinese New Year.

6) Being TIMID and not willing to dictate/request AD/PI to lower the car price or price it at lower COE level.

[Zakkwylde]

So bro, how long is the validity of the COE the AD/PI are holding? Until the next bidding is it?

[Sx4falcon]

yes. You are right.