Must also remember that this COE bidding is a not a typical one
as it is adjusting to clear off those backlog.
When you purchase a car from AD (auto dealer), you need to place
maybe $500 to $5000 depend on the AD regulation, the AD will then
bid for you for 3 months, each month there are 2 COE bidding
process, so 3 months is 6X.
If unsuccessful, they will return you back the deposit, but
mostly, they will ask you to upper your price, how much they bid
the COE is confidential. And COE is more or less controlled by the
ADs, they are the big brother in bidding COEs.
In January 2013, when CAT E was much higher than CAT A,
let said Mr XX decided on the AD price of a Altis at $140000,
base on a 80k COE rebate, signed and locked in his agreement, so
the AD bid for him,
January, first and second bids, not successful, February, first
and second bids, could be successful but dealer wanted to give to
those who booked on Decemeber first, which is said to be clearing
backlog.
Then come March bidding, because of revising the pricing soon,
they die die must bid high and get it, so this guy get his car but
at a high price of what he locked in, but dealer is not scare of
bidding at high price, because the car is at $140000 and after
that, they revise to 98,000k which is today price.
Last week was at Borneo motor kapoh a bit, it already give you a
98k pricing but not on the news, and upgrade automatically to Elite
class, meaning more functions.
So, if I sign and lock in today at 98000k, I might get my car in
late april or may, but with a lower COE, could be base on 50 to
40k.
So even if you bidded a 60k CAT E COE and decided to go and buy
a car at prevailing Car prices without COE, the next COE bidding
which is later this month might show a CAT A $50k only.
It is because of clearing backlogs of CAT A cars booking before
26 Feb 2013, that COE for CAT A had gone up. CAT B and the rest
could had aligned itself toward the market forces, but CAT A is one
exception that will re calibre later and go below CAT A and E.
Remember that now is at least 40% upfront and 5 years loan
period only, most will be looking back at kimchi and sushi car
again instead of Nazi car, which not only incur 50% upfront but
also a high taxation of ARF.
And all these must also take into consideration of reduction of
COE by 0.5 per month till next year. Meaning, if 10000 cars scrap
this year, there will be 10000 COEs available, but the govt will
reduce it by 6% at the end of the year rather than last time
increasing it that led to more COE and does cheaper
