2016 Mar, 1st COE Bidding Exercise

[Lincoln]

  On 3/14/2016 at 3:29 PM, Limwsv said:

Eh.. how to sell something that don't have in the first place..

 

Car trading not like margin trading.

Yes it can be done. In markets like this, AD shorts the market by overselling cars it can meets the demand. It will topup the difference by buying much cheaper COEs later.

[Limwsv]

  On 3/14/2016 at 3:38 PM, Lincoln said:

Yes it can be done. In markets like this, AD shorts the market by overselling cars it can meets the demand. It will topup the difference by buying much cheaper COEs later.

 

Sorry, I am too smart and too simple and simplistic at the same time.. please help me wrap my head around the concept...

 

Really struggling to understand how that business model even works.  

[Lincoln]

  On 3/14/2016 at 3:46 PM, Limwsv said:

Sorry, I am too smart and too simple and simplistic at the same time.. please help me wrap my head around the concept...

 

Really struggling to understand how that business model even works.

When COE prices are dropping and if you think the trend is going down, as an ADs your strategy will be to oversell and get as many orders as possible. You know that you are able to fill these orders with cheaper COE (6 bids) later. This is how shorting works in the stock markets as well. Best thing is you can dun fulfil your sell orders if COE price went against you. There is simply no biz in the world that allows you to do this.

[Limwsv]

  On 3/14/2016 at 3:53 PM, Lincoln said:

When COE prices are dropping and if you think the trend is going down, as an ADs your strategy will be to oversell and get as many orders as possible. You know that you are able to fill these orders with cheaper COE (6 bids) later. This is how shorting works in the stock markets as well. Best thing is you can dun fulfil your sell orders if COE price went against you. There is simply no biz in the world that allows you to do this.

 

I see..  the 6 bids non-guarantee package that people like to buy...

[Pocy]

  On 3/14/2016 at 3:53 PM, Lincoln said:

When COE prices are dropping and if you think the trend is going down, as an ADs your strategy will be to oversell and get as many orders as possible. You know that you are able to fill these orders with cheaper COE (6 bids) later. This is how shorting works in the stock markets as well. Best thing is you can dun fulfil your sell orders if COE price went against you. There is simply no biz in the world that allows you to do this.

Booked guarantee COE to avoid AD taking you for a ride?

[Moskva]

Since the COE may drop further, would we lose out if we book the guaranteed package? We not getting any money back if Coe drops right

[BenTong]

  On 3/15/2016 at 1:21 AM, Pocy said:

Booked guarantee COE to avoid AD taking you for a ride?

When ADs sense the future of COE is trending upwards, they usually list their cars with NG COE. And if you wanna G COE, u pay premium. Used to be $3-5k.

 

Recently the last 6 months see a lot of list price with guaranteed COE. Even the PIs were doing that.

 

For those who booked th guaranteed COE, only guarantee is that you will get your car. COE movement is no longer your concern. Only your ego will feel it. Coe above yours you come here and show off. Coe below yours, likely you keep quiet and suck thumb.

 

So relax la. What is done is done..

  On 3/15/2016 at 1:27 AM, Moskva said:

Since the COE may drop further, would we lose out if we book the guaranteed package? We not getting any money back if Coe drops right

You lose a bit of your ego la.

[Pocy]

What if COE trends upwards? If decided to book at certain price, can negotiate at a better price for guarantee COE, can't we try? Every buyer wants to see a lower COE including me. Many ppl predict COE but none can be sure it will go up or down. Just a though to share.

[Limwsv]

  On 3/15/2016 at 1:27 AM, Moskva said:

Since the COE may drop further, would we lose out if we book the guaranteed package? We not getting any money back if Coe drops right

 

That not quite true, Guarantee packages also comes with rebate... so if the COE drops below the rebate within the 1 or 2 bids, the payback still get triggered, so no loss.

[Moskva]

  On 3/15/2016 at 2:03 AM, Limwsv said:

That not quite true, Guarantee packages also comes with rebate... so if the COE drops below the rebate within the 1 or 2 bids, the payback still get triggered, so no loss.

Oh, thats something new. Thanks for the info

[BenTong]

  On 3/15/2016 at 1:48 AM, Pocy said:

What if COE trends upwards? If decided to book at certain price, can negotiate at a better price for guarantee COE, can't we try? Every buyer wants to see a lower COE including me. Many ppl predict COE but none can be sure it will go up or down. Just a though to share.

Everything can try... Get or not another matter.

[Justbear]

  On 3/15/2016 at 2:52 AM, Moskva said:

Oh, thats something new. Thanks for the info

That is only those with rebate clause. Most of the dealers just state guaranteed coe without top up thats it

[BenTong]

Hahaha.. One glimmer of hope then a bucket of cold water.

[Pocy]

  On 3/15/2016 at 2:53 AM, Justbear said:

That is only those with rebate clause. Most of the dealers just state guaranteed coe without top up thats it

Though I did not cover many ADs, those I had did give rebate for both non guarantee and guarantee. I believe must try to get a better deal even no rebate stated on price list. Whether COE will trend downwards as many ppl are expecting, I think it's already a buyer market currently. Hope every buyer will get a satisfactory deal. Good Luck!

[WillyWonka]

As long the government don't make any changes to the vehicle growth etc, I am sure the COE will come down this few months. Wait wait away

[Moskva]

  On 3/15/2016 at 2:53 AM, Justbear said:

That is only those with rebate clause. Most of the dealers just state guaranteed coe without top up thats it

Based on current trends, if AD/PI quote like 35k rebate, chances of getting back $$ is not that high unless Coe drops to below 35k right?

[kmttan]

  On 3/13/2016 at 1:42 PM, Hyruga said:

I am assuming that he said people who bot cars 1 years earlier have to fork out an additional 15k. 

 

So if they can just buy 1 year later, they could have saved 15k. Should not divide by 10 years cos the comparison is the COE for last year and this year.

 

Not forgetting that when COE falls, car prices don't fall in the same amount but trade-in values fall even more. Hence, if they buy now instead of last year, they save on new car price but lose big on trade-in car value. 

[Hshs]

  On 3/15/2016 at 1:48 AM, Pocy said:

What if COE trends upwards? If decided to book at certain price, can negotiate at a better price for guarantee COE, can't we try? Every buyer wants to see a lower COE including me. Many ppl predict COE but none can be sure it will go up or down. Just a though to share.

The COE trends is going downwards now. If can wait just wait.

If no changing of rules. I predict it will below $40k very soon.