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COE Bidding – 1st Round of July 2017

Carbon82

By Carbon82,
in General Car Discussion

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Poco

Poco

1st Gear

He didn't have the option of paying a few k more for guaranteed COE?

 

:D

He got his coe on 2nd bid but his car colour only arrive after 6 months.After 6 months coe drop.
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wongpumpkins

wongpumpkins

2nd Gear

feel current low demand maybe also due to most B&B car models outdated ( especially Altis which facelift still yet launch) and potential buyer wait for new models 

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Ct3833

Ct3833

Supersonic

gahmen has been earning 2-4b each year selling COE papers... disgusting!

Ah Hiah, the budgeted income for FY17 is $6.8 billion from COE alone, 2 to $4 billion would be a celebration to all the new car buyers.
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Ct3833

Ct3833

Supersonic

Bid low first, keep the acknowledgement number. You can revise your bid real time using the acknowledgement number before end of bid for as many time as you like. Just need to pay $2 for admin fee, and let them keep ur 10k deposite fore 2 to 3 days.

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Burungtua

Burungtua

Clutched

If you really understand how the Coe system works you will know that every insincere / overoptimistic bid will only make it easier for the dealers to raise it to higher levels.

 

So any individual who wants to tikam which is usually pointless, he or she is merely saving the dealers an additional 10k of their cash flow.

 

The only time to tikam is when the bid to quote ratio drops consistently over a few consecutive bids and is dangerously close to 1:1. Otherwise every additional bid simply serves to prop the premium up.

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Jamesc

Jamesc

Hypersonic

He got his coe on 2nd bid but his car colour only arrive after 6 months.After 6 months coe drop.

 

I know what you mean.

 

Life is always like that.

 

Get the COE and price drop.

 

Don't get the COE and the price goes up even more.

 

Sometimes you just cannot win in life.  [thumbsup]

 

:D

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Jamesc

Jamesc

Hypersonic

gahmen has been earning 2-4b each year selling COE papers... disgusting!

 

No no they are building up the reserves for your future.

 

Its like a parent disciplining their children.

 

Its pains them to do it but it all for your benefit.  [thumbsup]

 

:D  

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Fcw75

Fcw75

Hypersonic

gahmen has been earning 2-4b each year selling COE papers... disgusting!

What paper?

 

Now don't even have a piece of COE for you.

 

I call it a tax.

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Jamesc

Jamesc

Hypersonic

These days a lot of people have a sense of entitlement.

 

I don't have any sense of entitlement.

 

But I really wish I did.

 

The Cat A one also can.  [thumbsup]

 

:D  

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Wondertree

Wondertree

3rd Gear

What paper?

 

Now don't even have a piece of COE for you.

 

I call it a tax.

It is a tax. I think they budget it under transport tax or something to that effect.

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Victor68

Victor68

Turbocharged

Bid low first, keep the acknowledgement number. You can revise your bid real time using the acknowledgement number before end of bid for as many time as you like. Just need to pay $2 for admin fee, and let them keep ur 10k deposite fore 2 to 3 days.

 

I did that for a few bids and realised it is a waste of time and to $2 beside locking that $10K for a few days. Ultimately, if the bid is higher than what you want to secure, just don't bid at 1558 hours. start keying in around 1556 hours and wait till the last 1-2 minutes to check what is the latest bid. AD and PI cannot wait, they need to commit due to their volume. I hope I am right unless they have another special system to key in bulk without individual details. :a-good:

 

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Burungtua

Burungtua

Clutched

Trade bidders have batch bid facilities.

 

ADs do not wait until the last minute to batch bid. Only specific ph fleet owners do this.

 

Ads will submit their batch bids on the last day but not last minute because 1) they wait for as long as possible for orders to come in and 2) they won't wait till the last minute and risk not logging bids in time. They are in the business of delivering cars.

 

Coe collapse only happens when bid to quota ratios are progressively weaker over preceding bids and order books can't keep pace.

 

It's pointless to bid on your own to try and get an ultra cheap Coe unless the stars are completely aligned.

 

If all tikam bidders withheld their bids then the ADs lose some control over maintaining the eventual strike price. Each additional tikam bidder merely empowers the ADs to determine the end result better.

 

When bid to quota ratio is no where near 1:1, each tikam bidder is simply helping keeping the levels up.

 

When Coe prices gradually fall, more consumers tend to wait if they are not under pressure to buy and it will be a self fulfilling gradual spiral.

 

This assumes ph fleet owners don't enter the game.

And ADs prefer stable Coe prices. Not up not down. Stable prices facilitate the sales process. Less noise from customers waiting or rushing based on speculation of direction.

 

PIs are price takers. No real influence on strike price.

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Victor68

Victor68

Turbocharged

funny, if AD bid early, unless the totsl bids submitted is lower than available coe, how come lowest bid price is $1?

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Ct3833

Ct3833

Supersonic
(edited)

funny, if AD bid early, unless the totsl bids submitted is lower than available coe, how come lowest bid price is $1?

COE premium is based on the lowest successful bid price , as long as the number of bids does not exceed the quota quantity of that cycle, the bid price will stay at $1.

The moment the number of bids ecxeed quota, you would see the price escalate very quickly. In the past, most of the time the price would go to 20k to 30k when the number of bids exceeded about 100 above the quota. The indication is that there were not many individual bidders who have bidded low in each of the exercise.

Edited by Ct3833
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Burungtua

Burungtua

Clutched
(edited)

COE premium is based on the lowest successful bid price , as long as the number of bids does not exceed the quota quantity of that cycle, the bid price will stay at $1.

The moment the number of bids ecxeed quota, you would see the price escalate very quickly. In the past, most of the time the price would go to 20k to 30k when the number of bids exceeded about 100 above the quota. The indication is that there were not many individual bidders who have bidded low in each of the exercise.

Precisely. If the 100 or so tikam bidders were not there then the ADs would need to make up the numbers to elevate premiums to "acceptable" levels, ie, not too far from previous rounds. As mentioned, ADs want price stability because it's easier to get people to sign today when speculation of price direction is removed.

 

In a weak market like we see today, tikam bidders are kindly donating the use of their 10k to help ADs in pushing premiums to close enough to the last round.

Edited by Burungtua
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