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Buying Cars : Terms

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Buying Cars : Terms

Postby funksoulbro » Sat Jun 16, 2007 4:58 pm

Immediate Registration - IMMEDIATE REGISTRATION, means that the buyer will buy the car based on a COE that has already been secured under category E. That means, the buyer will not have to go for a tender but instead, the PI or distributor will transfer the ownership of the COE to the customer. Delivery ususally takes place around 3-7 working days after loan approval. NOTE: PI or distributors should not be selling a car based on immediate registration if:

i) the car allocated to the buyer has not been shipped, arrived, cleared from the port or has not cleared LTA's inspection and approval
ii) the PI or distributor does not own a category E COE

Note: At times, if the next bidding exercise is very close, some PI or distributors might go for 1 bidding and claim immediate registration. Some can register the car in time while some might miss by few days. Whether if this is acceptable, can only be justified by the buyer himself.

Guaranteed COE - GUARANTEED COE, is usually accompanied by the number of maximum bids a PI or distributors can exercise. Market standard varies from 2 bids to 6 bids (estimated between 1-3 months), assuming 2 bids per month). Assuming a maximum of 4 bids, is should mean that under no circumstances should the PIs or distributors require the buyers to top up in order to secure a COE, unless:

i) The buyer wishes to get the car and is willing to top up for an immediate or shorten the number of bids. (Eg. based on contract, price agreed upon is 4 max. bids. after the 1st bid, the buyer wants the car earlier for some reasons. In such cases, the PIs or distributors and the buyer can compromise and agree to top up for the COE. that is, for immediate registration (which usually takes around 7 working days)) or for shortening the number of bids, say from 4 to 3 bids, etc.

Bidding COE - The term BIDDING means that there is no guarantee that the PI will secure a COE for the buyer. However, depending on the rebate level, buyer can more or less guage how much the PI will be bidding. If it is stipulated that the rebate level is S$22K, the PI must not bid less than S$22K. The number of bidding varies from seller to seller.

In some cases, the PI might bid higher though not obligated to do so. This largely depend on individual PIs.

Rebate Level - REBATE LEVEL is an amount agreed by both the buyer and seller. If the COE falls below the rebate level, the buyer will be reimburse the differences. Eg. if the rebate level is S$22K and COE secured is S$20K, the buyer should get back S$2K. However, since the amount is not GUARANTEED, buyer is expected to top up if the COE is higher than S$22K unless, the seller agrees to absorb the differences.

The amount to be reimburse at the end of the day should be the COE secured (under the buyers' name or in Category E) LESS the rebate level.

No. Of Bids - NUMBER OF BIDS should commence upon signing of the agreement, immediately after the loan has been approved. It should not be based on the number of times the PI exercise a bid and it should not be based on after the arrival of the car. Eg. if the car needs to be indent or is in trans-shipment, the PI still have to bid for the COE unless, in special cases where delivery of the cars takes more than 6 months. This usually happens only in cars like Ferraris, Porsches, etc.
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