Yes, exactly! But dealers has the option of returning you your
deposit if they wish (after 6 bids). The dealer cost is about $46k,
so the margin is extremely thin at $45,800. The cost is calculated
as follows:
- Customs Duty = 20% OMV
- GST = 5% (actually 6% because GST also on Customs Duty)
- ARF = 110% OMV
- COE
==> Dealer cost = (2.36*OMV) + COE
OMV for 14C is $13145, so you can do the math. Add a bit for their
overhead and SE commissions.
They squeeze some profit from your trade-in car, PARF/COE rebate,
loan, and insurance:
- Kickback from used car dealer, bank, and insurance
companies
- buy PARF/COE from market at 4% discount and register your car
(you pay full price)
- remainder of road tax on your car is supposed to be refunded to
you, but usually dealers take it
Dealers rarely return deposits. Toyota SE told me that Borneo has
never done it ever. But I heard that Hyundai did on the Sonata
recently when they priced the Sonata at $61k for the National Day
promotion, and COE went up.
