Jp66 5th Gear July 13, 2010 Share July 13, 2010 The effect could be disastrous for some AD, if the COE quota is to remain low. If they cut SE or their commission, the downward sprial in sales will be bad. If less sales, means less servicing cars, and cut mechanics, the downward sprial in quality and waiting time for existing owners will be bad too. Lets see what COE scheme the scholars will come up with to try to salvage the situation before the AD/PI dies one by one. The YOG financial estimates is one big kok-up already. Whats next? The fact is there are already so many casualties (people losing their jobs, including BM), I hope LTA can act fast. What the fark good economy growth! ↡ Advertisement Link to post Share on other sites More sharing options...
Booboon 1st Gear July 13, 2010 Share July 13, 2010 like tat better don't buy from pi, scali take yr money them do a frankel motor. Link to post Share on other sites More sharing options...
SimonTan 2nd Gear July 13, 2010 Share July 13, 2010 Yes...Kah seems to be selling at a loss, if I go by the official ARF/OMV + COE calculation. So to me its like buying a brand new car at 'second hand car price' basing on the average OMV and current COE price. Someone mentioned its old 2008 stocks. I say what the hell !! When comes to selling in 4 years time....there will be no differences since no one will know! (Just like buying discouted test drive cars) Some more got 3+2 years warranty, so it should cover rust and problems at least for the first year. If all good and well in the first year....then subsequent years should me ok lah. He should be paying $77k or less for 1.5L Jazz. Look at the basic cost for Jazz 1.5. Already $84k. Gross margin of -$7k. So, KM is bleeding to clear the old stock and grab some market share. Link to post Share on other sites More sharing options...
SimonTan 2nd Gear July 13, 2010 Share July 13, 2010 Article shows Honds is selling at a loss. Why? I also dont know. How to survive? Go ask Kah. Closing shop soon? Hope not. But as a Honda buyer, I feel that I get a good deal! http://www.------.com/articles/article.php?artid=741 Link to post Share on other sites More sharing options...
TandemAssassin 1st Gear July 13, 2010 Share July 13, 2010 Even if Kah sell at a loss, they must clear stock. In their distributor agreement, they have certain quotas to hit. The fact that the Jazz model in inventory are YOM 08 shows that they prob brought in very few units of YOM 09, if at all. Sooner or later, Honda will start to make noise. Probably, they can use some of the earnings from financing and insurance to pay for the SE comms and other overheads and so reduce the loss or maybe make a small profit on each car. My sec sch buddy's family is in the trade. They lose a few k every car they sell now. But no choice, if not, their distributorship will kenna chop. Link to post Share on other sites More sharing options...
Majordan 2nd Gear July 13, 2010 Share July 13, 2010 jazz 1.5 at 84k? you gotta be shtting me... there are better rides out there at this price Link to post Share on other sites More sharing options...
Zze121 3rd Gear July 13, 2010 Share July 13, 2010 Kah still not bleeding, but margin reduce. For past 9 yrs they had been making $$ selling close to 120,000 cars second to Toyota. Due to COE redure to 50k this yr, the order have to reduce and stock to clear. But its still making $$ but $108k for a 1.8 Civic is still not worth. Link to post Share on other sites More sharing options...
Kiadaw 6th Gear July 13, 2010 Share July 13, 2010 jazz 1.5 at 84k? you gotta be shtting me... there are better rides out there at this price I always though Jazz was overprice, even when they sold at 65+k then, but now.....Better top up a bit for something like golf or dig 2nd hand market better lah. Naywa, I see the price of new cars at SGcarmart. OMG! Link to post Share on other sites More sharing options...
SimonTan 2nd Gear July 14, 2010 Share July 14, 2010 Seems like market is cool about the quota cut. No rush from colleagues/friends to buy car. No price hike from the usual BM, TC & KM this time round. Let's see showroom will be crowded this weekends or not? Link to post Share on other sites More sharing options...
Mzrmazda3 6th Gear July 14, 2010 Share July 14, 2010 The effect could be disastrous for some AD, if the COE quota is to remain low. If they cut SE or their commission, the downward sprial in sales will be bad. If less sales, means less servicing cars, and cut mechanics, the downward sprial in quality and waiting time for existing owners will be bad too. Lets see what COE scheme the scholars will come up with to try to salvage the situation before the AD/PI dies one by one. The YOG financial estimates is one big kok-up already. Whats next? Read from Straits Times yesterday that a certain AD had slashed it's workforce ... Link to post Share on other sites More sharing options...
Mzrmazda3 6th Gear July 14, 2010 Share July 14, 2010 Kah still not bleeding, but margin reduce. For past 9 yrs they had been making $$ selling close to 120,000 cars second to Toyota. Due to COE redure to 50k this yr, the order have to reduce and stock to clear. But its still making $$ but $108k for a 1.8 Civic is still not worth. To spend 108K for a 1.8L Civic ...... might as well get a conti My thoughts ... Link to post Share on other sites More sharing options...
Maroon5 5th Gear July 14, 2010 Share July 14, 2010 anyw yest papers a quote fr one industry player saying COE shd stabilise at this level..no longer the open cat $49,999 levels becos "any higher (COE) pple will just stay away fr the showrooms"...plus 2/3 of the cars in sg now are less than 4yrs old....tat puts me in the 1/3 bracket haha.. Link to post Share on other sites More sharing options...
Carer 2nd Gear July 14, 2010 Share July 14, 2010 (edited) i think the higher COE, the lower the margin Edited July 14, 2010 by Carer Link to post Share on other sites More sharing options...
Jp66 5th Gear July 14, 2010 Share July 14, 2010 anyw yest papers a quote fr one industry player saying COE shd stabilise at this level..no longer the open cat $49,999 levels becos "any higher (COE) pple will just stay away fr the showrooms"...plus 2/3 of the cars in sg now are less than 4yrs old....tat puts me in the 1/3 bracket haha.. Read this news this morning on Straits Times, I very very "song". Dealer kena burnt with $49K Open Cat COE. They are going to let it expire and the $5K deposit will be forfeited (donated to ah gong). One dealer even has 50 pcs, he plan use some on demo cars and the rest RIP Link to post Share on other sites More sharing options...
7007 2nd Gear July 14, 2010 Share July 14, 2010 No wonder some of them are selling at loss...overstock of vehicles and COEs... serve them right for pushing to that level....no pity from me... Link to post Share on other sites More sharing options...
SimonTan 2nd Gear July 14, 2010 Share July 14, 2010 "One dealer even has 50 pcs, he plan use some on demo cars and the rest RIP" How much is the default loss per unused CatE?? $5000? I think Singapore car dealers are going thru a shake up this year. Car salesman will go be housing and insurance salesman? Link to post Share on other sites More sharing options...
Ben5266 Supercharged July 14, 2010 Share July 14, 2010 Yes...Kah seems to be selling at a loss, if I go by the official ARF/OMV + COE calculation. So to me its like buying a brand new car at 'second hand car price' basing on the average OMV and current COE price. Someone mentioned its old 2008 stocks. I say what the hell !! When comes to selling in 4 years time....there will be no differences since no one will know! (Just like buying discouted test drive cars) Some more got 3+2 years warranty, so it should cover rust and problems at least for the first year. If all good and well in the first year....then subsequent years should me ok lah. I have a wrong assumption on your OMV. If you confirm your Jazz was imported in late 2008, OMV in Nov 2008 for Jazz 1.5 was $21.5k. This should be the OMV on your log card. Even at this, KM's cost is still $80k. Link to post Share on other sites More sharing options...
Zze121 3rd Gear July 14, 2010 Share July 14, 2010 Some of the car they sold can still use 2-3mth COE, so it is possible the price is low. Looking at the COE allocation for pass 10 yrs, its time to bring down. 1999 38482 2000 58098 2001 67158 2002 62960 2003 81259 2004 96861 2005 109376 2006 117062 2007 106710 2008 97348 2009 68862 2010 5???? ↡ Advertisement Link to post Share on other sites More sharing options...
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