Am i seeing things with the high COE?

[Watcha]

[pegasi]

What does "premium" mean, Watcha?

[Watcha]

Basically "premium" is a good indication of the profit margin by the dealer as in the above example.
To have negative premium is uncommon. Not that they will really sell at a loss.

Premium as explained by SGCarMart:

The premium is the percentage by which the listed price is higher than the total basic cost paid by the car dealer to bring in the vehicle.
The total basic cost includes the OMV, custom duty, GST, ARF, CEVS surcharge, registration fees and COE.
The total basic cost excludes insurance premium, number plates, road tax, IU, dealer's commission, and all other overheads.
The formula used to derive the figure is as follows:
Premium = ((List Price - Total Basic Cost) ÷ Total Basic Cost) * 100%

[snoop]

Which carmake is the first post referring to? The dealers selling at a loss? Negative premiums??

[sgeto]

when will coe drop?

[pegasi]

Thanks for the very clear explanation, Watcha.

It seems such on-paper loss from car sales could happen when the COE is high as well as when it is low. I recall few years ago when the COE went below 15k, there was an article on the Life! section of ST giving similar analysis on cost vs sales price showing Toyota Corolla was being sold at a loss of few thousand dollars amid fierce competitions.

[Trinidad]

With high COEs, all the B and B car dealers extra headache.

[muggie36]

when will coe drop?

Maybe it will drop when GE comes around???

[williamhha]

if let say, average car depreciation around $5k - $10k, continental car should be $10 - $15k that will be good.

[minerva]

if let say, average car depreciation around $5k - $10k, continental car should be $10 - $15k that will be good.

sounds reasonable..

[Soon.GR]

Wah 333k for 335i too ex la. i would prefer to get secondhand cars. Got a good deal last year for my mini hahaha

[triggerfish]

Hope price will come down soon

[Jamiewabbit]

Will it come down, seems not so, every bidding, the number of bidders far outstrip the number of certs...... demand seems to be strong still. Could the 60k range be the new accepted norm?