Low Resale Value? Let Dive into New Car Pricing and Sales Strategies

[Carbon82]

@Soya those airshow model usually have lower specs, so the lower selling pricing does not translate to excellent saving, and neither they will have great impact on used car pricing. More of a concerns is PML lelong sales typically in June and other quarter end, where certain models (such as entry level 2 series and X1) will be cleared at below cost price, and buyers who paid a much higher price will feel "cheated" and may even leave the brand for good.

@Lethalstrike Yes, I have also noted that those Volvo V60 CC and V90 CC have clocked some mileage and likely these are the test drive units (loaner car has even higher mileage, typically between 4,000 to 6,000 Km. I am not in the business but logical thinking, why don't Wearnes use the test drive units as loaner car, instead of registering them and put them on the resale market? Looking at the bigger picture, it also mean that Wearnes sold just 6 - 7 brand new V60 CC and V90 CC directly to their customers within a 5 months period. Beside being a niche model, is there other reasons that sales is not moving? 

@Benarsenal in other countries, car don't depreciate as much as in Singapore (no 6 digit COE, 10 years life span, etc.), and profit margin rarely exceed 15% of the new car cost (before chip shortage started causing supply disruption and erratic pricing of both new and used cars), so the impact on used car market is relatively minimal. And in many cases, these units will ended up with rental companies.

@Freeder Cars from PIs are no longer as cheap as before, since they have the commanding power with ex-stock in their inventories (for some popular model, wait list over at ADs can be as long as >1 year). I bought from PI before, and profit margin then was just a 4 digits sum (or ~10% of new car price), cheap cheap... Oh yah, I also do not have any bad experience with their aftersales service support and warranty claim, unlike with say KM and VCS. 

[Carbon82]

@Fitvip PML will register airshow car under the buyer's name before the start of the event (for insurance purposes according to my understanding through my ex-MD who bought a 520i back in late 2000s). So the buyer will be the 1st owner on LTA records, although the car will be trashed by those part time drivers for about 2 weeks (including the pre-event training and familiarization drives), before handing over to the owner. Some lucky few will get brand new undriven car (as these are the reserve fleet).

@Soya I just saw your 2nd post asking about who will absorb the discount for airshow car. In short, it is BMW Asia. And as I have shared earlier, the spec are slightly different so it will be easier for PML to share the details with potential buyer, and let them decide which one is a better deal. Afterall, airshow cars were also transacted under PML, so they will still get their share of the profits.

@Arogab As long as the car has been registered (with a registration date shown in the advertisement), buyer will become the 2nd owner. All I can say is that the resale value of a 2nd hand car, vs a 3rd hand car will be different, easily by a few Ks. So unless the car is priced at least $20K to $30K lower than brand new unit (after all the O/T, discounts and other perks - e.g. free servicing, servicing credits, shopping / petrol vouchers, etc.), not worth to get these so call brand new used car, imo.

@Lovemyride There is no restriction to the transfer of ownership within the 1st 6 months, if the car is registered using Cat E (open cat) COE. If the car is registered using cat A or B COE, it cannot be transferred within the 1st 3 months, and between 4th to 6th months, a levy (equivalent to the price different in the COE premium in the same cat - COE premium paid vs current COE premium) will be payable before transfer of ownership will be allowed.

[DOBIEMKZ]

43 minutes ago, Carbon82 said:

@Fitvip PML will register airshow car under the buyer's name before the start of the event (for insurance purposes according to my understanding through my ex-MD who bought a 520i back in late 2000s). So the buyer will be the 1st owner on LTA records, although the car will be trashed by those part time drivers for about 2 weeks (including the pre-event training and familiarization drives), before handing over to the owner. Some lucky few will get brand new undriven car (as these are the reserve fleet).

@Soya I just saw your 2nd post asking about who will absorb the discount for airshow car. In short, it is BMW Asia. And as I have shared earlier, the spec are slightly different so it will be easier for PML to share the details with potential buyer, and let them decide which one is a better deal. Afterall, airshow cars were also transacted under PML, so they will still get their share of the profits.

@Arogab As long as the car has been registered (with a registration date shown in the advertisement), buyer will become the 2nd owner. All I can say is that the resale value of a 2nd hand car, vs a 3rd hand car will be different, easily by a few Ks. So unless the car is priced at least $20K to $30K lower than brand new unit (after all the O/T, discounts and other perks - e.g. free servicing, servicing credits, shopping / petrol vouchers, etc.), not worth to get these so call brand new used car, imo.

@Lovemyride There is no restriction to the transfer of ownership within the 1st 6 months, if the car is registered using Cat E (open cat) COE. If the car is registered using cat A or B COE, it cannot be transferred within the 1st 3 months, and between 4th to 6th months, a levy (equivalent to the price different in the COE premium in the same cat - COE premium paid vs current COE premium) will be payable before transfer of ownership will be allowed.

@Carbon82 Regarding your point 4, is the levy payable no matter whether current COE premium is higher or lower the paid COE premium?

[Thaiyotakamli]

I do become sucker once

bought new A8 let PA earn handsome 80-90k profit for my car

the following year i sold to direct buyer for a loss of 90k

 

if sell to dealer i would lose 100-110k 

 

so did the car has poor resale value? Maybe. But for sure my first year depre absorb all PA profit

[Lethalstrike]

10 hours ago, Carbon82 said:

@Lethalstrike Yes, I have also noted that those Volvo V60 CC and V90 CC have clocked some mileage and likely these are the test drive units (loaner car has even higher mileage, typically between 4,000 to 6,000 Km. I am not in the business but logical thinking, why don't Wearnes use the test drive units as loaner car, instead of registering them and put them on the resale market? Looking at the bigger picture, it also mean that Wearnes sold just 6 - 7 brand new V60 CC and V90 CC directly to their customers within a 5 months period. Beside being a niche model, is there other reasons that sales is not moving? 

I would have to call my friend working at Wearnes Volvo and ask him what the hell is going on 😆

My best guess is from a logical point of view, the test drive unit for V60CC and V90CC they only have 1 each at any one time. Test drive cars don't have to registered, but the moment the test drive cars are being re-assigned internally into a loaner car for customers, they do need to be registered as they need to put number plates on (owner count becomes 1). It could also be that internally, there is a SOP that they must sell the car as a management car the moment a certain mileage is accumulated, that's why these cars kept popping up on sgcarmart. 

You've asked besides being niche model, why sales not moving? High COE, lousy resale, lousy aftersales, low OMV, lousy trade-in lor 😂

[Soya]

1 hour ago, Lethalstrike said:

You've asked besides being niche model, why sales not moving? High COE, lousy resale, lousy aftersales, low OMV, lousy trade-in lor 😂

In addition to these factors, I reckon wowo has lost it's USP. In the past, it's unique selling point was safety

Now, even the humble VW Polo oso has 5-star NCAP so safety has been commoditised

And it doesn't help that it was pricing it's product close to the Germans tho it has a lower OMV and shorter 3-yr warranty compared to the German's 5-yr

 

[Arogab]

16 minutes ago, Soya said:

In addition to these factors, I reckon wowo has lost it's USP. In the past, it's unique selling point was safety

Now, even the humble VW Polo oso has 5-star NCAP so safety has been commoditised

And it doesn't help that it was pricing it's product close to the Germans tho it has a lower OMV and shorter 3-yr warranty compared to the German's 5-yr

 

I actually like the wowo handling and power. The safety is still there, if you open up in the door, you still see the c-channel installed there. But i just don't like the interior leh. 

[Lethalstrike]

1 hour ago, Soya said:

In addition to these factors, I reckon wowo has lost it's USP. In the past, it's unique selling point was safety

Now, even the humble VW Polo oso has 5-star NCAP so safety has been commoditised

And it doesn't help that it was pricing it's product close to the Germans tho it has a lower OMV and shorter 3-yr warranty compared to the German's 5-yr

 

Now Wearnes Volvo is 5 years warranty liao. But lower OMV is very typical of Wearnes's brands. 

[Soya]

30 minutes ago, Lethalstrike said:

Now Wearnes Volvo is 5 years warranty liao. But lower OMV is very typical of Wearnes's brands. 

Yeah they finally extended it to 5 yrs lately. But lost ground for too long liao. Even wowo supporters like me hv moved on....

 

[Jamesc]

Of course buyers of preloved cars will only offer a low price.

If they can afford full price they will buy new.

If anyone know how to get a high resale value

please come and work for me.

I am looking for a salesman that can carrot people.

I got a de glee in marketing so I should say

Maximise the sales revenue.

[Jamesc]

Did I forget to say 

I pay very well?

The higher the sales revenue

the higher the commission.

[Jamesc]

I am an equal opportunistic employer

and ladies and gents both welcome

Good looking gents to service tai tais

and also the new metro sensual market.

Metro sensual men have the most disposable income

and like to spend.

[DOBIEMKZ]

1 hour ago, Jamesc said:

I am an equal opportunistic employer

and ladies and gents both welcome

Good looking gents to service tai tais

and also the new metro sensual market.

Metro sensual men have the most disposable income

and like to spend.

🤨"...Metro sensual men..."  you mean those swinging bachelors ?🤔

[Jamesc]

Well they are swinging something.

16 minutes ago, DOBIEMKZ said:

🤨"...Metro sensual men..."  you mean those swinging bachelors ?🤔

 

[Arogab]

4 hours ago, Jamesc said:

Did I forget to say 

I pay very well?

The higher the sales revenue

the higher the commission.

My boss also tell me like this, now my neck long long

3 hours ago, Jamesc said:

I am an equal opportunistic employer

and ladies and gents both welcome

Good looking gents to service tai tais

and also the new metro sensual market.

Metro sensual men have the most disposable income

and like to spend.

Maybe I can come to help you service the tai tias if they willing to afford me😆

[Etnt]

10 minutes ago, Arogab said:

My boss also tell me like this, now my neck long long

Maybe I can come to help you service the tai tias if they willing to afford me😆

U dun play play. Later become service his mil

[Jamesc]

1 hour ago, Arogab said:

My boss also tell me like this, now my neck long long

Maybe I can come to help you service the tai tias if they willing to afford me😆

I think you got typo.

You mean your pockets long long lah.

Tai tais no problem. My business booming now got too many.

[Carbon82]

21 hours ago, DOBIEMKZ said:

@Carbon82 Regarding your point 4, is the levy payable no matter whether current COE premium is higher or lower the paid COE premium?

If the car being transferred is registered with a Category A or B COE, and is 4 to 6 months from its registration, you may have to pay an additional levy. This levy takes effect when the Quota Premium (QP) paid for the vehicle’s COE is lower than the QP in the car’s corresponding COE category at the time of the transfer. The additional levy is the difference between these two amounts.

https://onemotoring.lta.gov.sg/content/onemotoring/home/selling-deregistering/transfer-ownership.html