Sunday, November 23, 2008

Tales of the $2 COE

The $2 Category A COE Quota Premium in the 2nd bidding exercise in November has brought a wide spectrum of reaction from motorists, dealers and the public. If you visit some of the motoring forums, you will come across interesting discussions about this freak bidding result.

The Happiest group
Buyers who were given a high COE rebate realized major savings to what they thought they are going to pay for their new rides. The highest rebate level that I know was $10,000 so the lucky buyers get a $9,998 discount.

Independent bidders should also be extremely pleased to have caught this rare opportunity of spending just $2 to get the certificate. Be reminded that $2 may not even get you pass some ERP gantries.

In-the-Middle group
Buyers who are given a low COE rebate realized some savings while the resale value of their new rides will be a lot lower compared to cars with high residual COE value.

The Angry group
Some buyers from Parallel Importers are screaming foul as the unethical dealers are not honouring verbal commitment of COE rebate. There are discussions of banding together and asking CASE to help them recover the "promised" COE rebate.

Another dozen angry persons are the bidders who had left their bid standing at $1. Think about that - they are the unlucky dozen who bidded and failed to secure a certificate.

Lesson Learned
This event has taught me an important point - NEVER neglect the details for CONTRACTS. If the purchase agreement contains all the details and includes all possible scenarios, then there should not be any conflict. Otherwise, the buyer and the dealer should cool down, sit together and try to come to a settlement without going to court and incurring hefty legal fees.

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