OMV and Actual Car Cost

[Beehive3783]

This is why in the case of BMW, BMW Asia import via low OMV from BMW factory mah..

 

If only kacang puteh AD, you think factory will give a damn even if you ask?

 

 

why would factory do that if AD don't "ask" them to "collude"

 

factory leh ... you think china XYZ factory la

 

these are honda/toyota/nissan/kia/hyundai/bmw/mercedes/audi/vw - these are reputable car maker hor

 

 

 

[Ucypmas]

No no we are not talking about AD asking factory to declare $1. This of course lim kopi liao.

 

What if factory itself stated selling price is $1 without AD asking factory to do so?

 

 

 

 

Suddenly, the car model (and for that matter all of the AD's brand car) will have "extended inspections" at VITAS. And weekly visits from IRAS to "clarify accounts & tax payable". Don't need to go and lim kopi, cheng hu come down and setup the kopi shop in your office.

[Benarsenal]

No no we are not talking about AD asking factory to declare $1. This of course lim kopi liao.

 

What if factory itself stated selling price is $1 without AD asking factory to do so?

 

 

 

 

It is extreme, but he has a point.

 

If I, the manufacturer, say my car is 20k straight from the factory floor, who are you to question me? The car is mine, I make one what.

 

Is like I make a cup of kopi and decide to sell to you at 10 cents. Will IRAS come and question me for missing GST?

Edited March 18, 2015 by Benarsenal

[Dinobros]

Benasesenal, yes if sell at 10cts iras will not come after you.

Let's imagine based on your current analogy, However if you charge the customers a monthly membership fee for 11 dollar a month in order to be allowed to drink your coffee at 10 cts and let say you didn't pay GST for it. Now I think IRAS will be knocking on your door.

 

But of course here we are talking about various duty and taxes which complicate things. That when transfer pricing comes into play.

 

 

 

It is extreme, but he has a point.

 

If I, the manufacturer, say my car is 20k straight from the factory floor, who are you to question me? The car is mine, I make one what.

 

Is like I make a cup of kopi and decide to sell to you at 10 cents. Will IRAS come and question me for missing GST?

[Mkl22]

 

It is extreme, but he has a point.

 

If I, the manufacturer, say my car is 20k straight from the factory floor, who are you to question me? The car is mine, I make one what.

 

Is like I make a cup of kopi and decide to sell to you at 10 cents. Will IRAS come and question me for missing GST?

 

customs is not stupid, they will compare with global prices. Just like if you buy a LV and Hermes bags back from paris and say its only $500. who would believe you,

[Enye]

Singapore car industry so unique

 

First time I hear manufacturers giving low transfer price to their own overseas trading company

 

Most in other industries would have rather have a high transfer price to retain as much profit as possible at source

 

Transfer price is usually determined at arm's length so that tax authorities cannot dispute

 

😂

Edited March 19, 2015 by Enye

[Benarsenal]

 

customs is not stupid, they will compare with global prices. Just like if you buy a LV and Hermes bags back from paris and say its only $500. who would believe you,

 

Of course it's uncommon, but it's not impossible. Could be old stock, could be buy from friend who just want to get rid, could be massive discount clearance sale, lots of different reasons.

[Kimchicarlover]

 

Maybe the AD ship in the lowest spec car and then fit the rest of the options in Sg. I know hyundai does that cuz I notice my car's alarm system, audio system, GPS, sunroof and even leather seats are different from the one which one of my relative has overseas. Comparing with the overseas hyundai forums, what the hyundais in sg have is different from the rest of the world. So I guess these parts were fitted locally.

 

Buy more cars, get bigger discounts. Outlander's OMV is cheap because C&C buys in bulk and it has probably connections in Malaysia to take up any unsold cars.

[Wt_know]

AD is doing us a favour to find "ingenius" way to bring down OMV ... lol

imagine for a $100K car ... COE + ARF + 20% tax + GST already cost $70K-$75K of the car.

there is not much meat left for car maker > distributor > AD > SE liao ... lol

Edited March 20, 2015 by Wt_know

[Wt_know]

it's not AD got heart or not ... they need to make money

if they put in more things ... OMV goes up pay more tax ... ARF/TAX/GST all goes up

can buyer stomach additional $10K-$15K? else has to maintain bare minimum bone stock to maintain $100k

the most AD can fit locally just $1K-$2K stuff ... lol

 

Nothing new. Many cars sold here not full spec compared with bigger markets like China or Thailand. If AD got a heart, they will install parts here, if not then consumer pay full price for lower spec. Because high prices surely good stuff right?

 

Edited March 20, 2015 by Wt_know