SINGAPORE: Prices in the latest COE bidding exercise may be up across all categories. But dealers are slashing prices of cars to lure buyers as the upcoming Lunar New Year approaches.
It's the season for car promotions. Sales for one showroom were up by at least 20 per cent when prices were slashed by some S$2,000.
Chin Chee Min, senior manager, C & C KIA, said: "They are also expecting the promotions from all the car sellers and retail outlets. Yes you are right, we will sacrifice a lot of our profit margin. But if we don't do it now, we won't be able to get in tune with the buying sentiments of the customers."
Buyers have been flocking to the showroom this weekend with demo models being S$4,000 to S$10,000 cheaper.
And at the close of the first day of the promotion, over 100 cars were sold.
Such hot deals aside, some are buying now because of the expected reduction in COE supply.
Mr Chin said: "COE is demand and supply. With fewer margins, the strength of the bids will be sacrificed. But it will probably be equalised by the number of bids, because there are more bids coming in."
So some car dealers aren't expecting COE prices to fluctuate much from current levels.
source: channelnewsasia
