Car Prices in the Near Future

[Welbo]

So doesnt all this mean that its worth holding on to ure current car now and saving up for the inclemental cheaper cars in the near future? How many years do u think it will take before the 318i wil drop to $100k? hehe.

By the time the 318i drop to $100k, the ERP will cost you about $20 just to get to and from work........... :angry: and thats not all, you will be caught in the jam for about 2 hrs every evening..........esp the biggest carpark in Singapore....CTE :verysad:


Cheers!
8)

 

[louis]

hi, my two cents worth:

i'm not sure abt future tariffs and taxes, but i have heard from a couple of sales reps that prices at PML will be increased next year. Most were vague abt the amount but one told me that for the Z4 2.5L, prices will increase by $5000. i would expect these increases to apply across all model ranges as well.

also, savings from the tax cuts may tempt more first time buyers and increase demand for COEs. Also, i believe that COE prices are low now due to the old PARF rebate system that encourages pple to scrap their cars early resulting in an excess of COEs... we are at the tail end of this deluge and so future COE quotas may be revised downwards, decreasing supply. The probable resultant increase in COE prices will most likely negate whatever savings u get from the taxes. Higher COE prices translates into greater depreciation every year too.

also, if u were to look at the last few times they revised the ARF, a lower upfront ARF is usually accompanied by a disproportionately lowered rebate percentage too when u trade in or deregister your car...

i believe the principle behind these changes is to lower upfront cost of owning a car, but at the expense of increased cost of maintaining one... at the end of the day, doesn't really make a difference right? if u're gonna buy a new car, u've gotta be prepared to lose money, lots of it.

also, foreign exchange rates play a big part in determining our OMVs and hence PML's profit margins & the final car prices. u planning on taking that chance?

lastly, PML may not necessarily pass on upfront savings in taxes to the customers because they are the sole distributor of BMW and don't face significant competition from parallel importers. Also, premium marques like BMW, MB, etc may be reluctant to lower their prices for fear of damaging their brand image. They will most probably cite the introduction of new models, fancy technology like valvetronic & i-drive or facelifted versions as a reason to either maintain current prices despite lowered taxes or to increase the prices further.

i am not an authority on this subject so if anyone feels differently or sees the flaws in my logic, pls share.

louis

 

[duckduck]

So doesnt all this mean that its worth holding on to ure current car now and saving up for the inclemental cheaper cars in the near future? How many years do u think it will take before the 318i wil drop to $100k? hehe.

By the time the 318i drop to $100k, the ERP will cost you about $20 just to get to and from work........... :angry: and thats not all, you will be caught in the jam for about 2 hrs every evening..........esp the biggest carpark in Singapore....CTE :verysad:


Cheers!
8)

The whole point of this tax system is so that u can own ure dream car earlier but at the same time force u to consider public transport instead of paying $20 for ERP. So in other words, we're back to square one, BUT with a better car..

It totally support it, so just when will materialize?

 

[duckduck]

hi, my two cents worth:

i'm not sure abt future tariffs and taxes, but i have heard from a couple of sales reps that prices at PML will be increased next year. Most were vague abt the amount but one told me that for the Z4 2.5L, prices will increase by $5000. i would expect these increases to apply across all model ranges as well.

also, savings from the tax cuts may tempt more first time buyers and increase demand for COEs. Also, i believe that COE prices are low now due to the old PARF rebate system that encourages pple to scrap their cars early resulting in an excess of COEs... we are at the tail end of this deluge and so future COE quotas may be revised downwards, decreasing supply. The probable resultant increase in COE prices will most likely negate whatever savings u get from the taxes. Higher COE prices translates into greater depreciation every year too.

also, if u were to look at the last few times they revised the ARF, a lower upfront ARF is usually accompanied by a disproportionately lowered rebate percentage too when u trade in or deregister your car...

i believe the principle behind these changes is to lower upfront cost of owning a car, but at the expense of increased cost of maintaining one... at the end of the day, doesn't really make a difference right? if u're gonna buy a new car, u've gotta be prepared to lose money, lots of it.

also, foreign exchange rates play a big part in determining our OMVs and hence PML's profit margins & the final car prices. u planning on taking that chance?

lastly, PML may not necessarily pass on upfront savings in taxes to the customers because they are the sole distributor of BMW and don't face significant competition from parallel importers. Also, premium marques like BMW, MB, etc may be reluctant to lower their prices for fear of damaging their brand image. They will most probably cite the introduction of new models, fancy technology like valvetronic & i-drive or facelifted versions as a reason to either maintain current prices despite lowered taxes or to increase the prices further.

i am not an authority on this subject so if anyone feels differently or sees the flaws in my logic, pls share.

louis

I dont think lowering the marque prices here will damage their brand, becoz all other car makers in Sg will lower their prices in tandem. If others lower n they keep their prices up, guess who will falter in the long run?

Also, with increased ERP rates, i think it is enough of a deterrence to make sure the demand for new cars remain constant or lower in the future. Plus I think the they will increase number of COEs. This is to let car enthusiasts own more cars, but still give them a choice of whether to travel into the ERP zone by car. There are many empty roads in Sg, so why restrict car ownership? Just dont drive into ERP zone lor.

 

[louis]

I dont think lowering the marque prices here will damage their brand, becoz all other car makers in Sg will lower their prices in tandem. If others lower n they keep their prices up, guess who will falter in the long run?

Also, with increased ERP rates, i think it is enough of a deterrence to make sure the demand for new cars remain constant or lower in the future. Plus I think the they will increase number of COEs. This is to let car enthusiasts own more cars, but still give them a choice of whether to travel into the ERP zone by car. There are many empty roads in Sg, so why restrict car ownership? Just dont drive into ERP zone lor.

firstly, ask yourself, is PML really concerned abt how toyotas and hyundais are priced in relation to BMWs? or are they more concerned with Merc, Audi, etc? and never ever underestimate the premium that a brand name places on a product... they will compete, but not necessarily on price. they may offer extras instead like the Alpha experience for 7 series owners. if it were just sales numbers that concerned them, they would be bringing in the 1 series wouldn't they? And MB would be pricing the A class closer to the nissan marches and peugeot 206s wouldn't u agree?

next, touch your heart... u really think the government gives a rat's ass about car enthusiasts? (pardon my candor)

i think u make a valid point with regards to the ERP rates. however, to hijack your words: there are many empty BUSES, TRAINS & TAXIS in Sg, so why ENCOURAGE car ownership? car ownership in singapore is viewed within the larger framework of our national transportation system & networks, its not a matter of filling up empty streets.... which don't exactly qualify as a problem either, just ask anyone who's been to bangkok. so my opinion is that they aren't likely to shower the car-loving enthusiasts with COEs just because our grateful smiles will warm their hearts and remind them of the joy and honour of being able to serve the community.

also, bear in mind the perils of a greater reliance on oil imports resulting from a larger car population, ask mr bush, either one...

moreover, i believe interests rates are rising quickly... save in taxes, but bleed through your loan.

lastly, lets not forget abt the environment. i know its very unfashionable to be a tree-hugger these days( i think the meaningful cause-du-jour is AIDS awareness now), but more cars equals more pollution. we did sign the Kyoto Treaty on greenhouse gas emissions right? so as the goverment, would u rather have your emission quotas filled by revenue generating factories or a bunch of "car enthusiasts"?

so get the car now if u want to, no point holding out for a 100k 318i. you only live once, just take the plunge.

 

[martmode8850]

although carbon fibre is used on cars now, most of it is still metal based.

look at the metals market this year and you see a significant big increase in prices. cost of raw materials for cars has gone up. the only thing is when will it hit us consumers. most car manufactures have long term contracts with the metal vendors. so it might not be this year that these vendors need to up their prices. next year looks like a good indication.

lowered prices in Spore was due to the lower COE premiums. so net car distributors make the same amount of money.

if you ask me if the price will drop more, i think it will increase instead of decrease. maybe the green 318i will drop to $100k if they really need to sell it off. saw one on Monday when i was at PML to settle some loose ends with me sales rep.

 

[louis]

nah, if i were PML, i'd try to sell them at current prices till the E90 appears, failing which, i'd keep those oxford greens as courtesy cars to loan out to customers, re-export to another country which will not be receiving the E90 so soon or send them to malaysia for use as bmw driver training vehicles.