COE premiums expected to remain stable
08 May 2013|5,989 views
"The Cat B premium may slip by a few thousand dollars but I don't expect Cat A to drop," said the Managing Director of a mass market dealership. "Some distributors still have a backlog of orders, which were collected at low prices and which they have not been able to secure COEs for. That should keep the Cat A premium from plunging," he added.
He also pointed out that the popular brands were still collecting orders however the orders were definitely far from the rate that they used to.
But while many in the industry are complaining about the weak market, one Sales Manager is seeing some small signs of renewed interest.
Now that the 60-day grace period for the used car market is ending and most of the pre-owned car dealers have cleared their stocks, the Sales Manager believes that buyers are slowly returning to the new car market.
As for the ongoing illegal practice of overtrade, or extending a discount in the form of a higher trade-in value, he expects it to disappear soon.
"You can't have any rebates in the sales agreement or the bank will pick up on it and call you up to question you. The full impact of the financing restrictions is slowly kicking in. There is no other option for car buyers," he said.
The new car market has been generally quiet over the last two weeks but most distributors expect COE premiums to remain relatively stable in today's bidding exercise.
"The Cat B premium may slip by a few thousand dollars but I don't expect Cat A to drop," said the Managing Director of a mass market dealership. "Some distributors still have a backlog of orders, which were collected at low prices and which they have not been able to secure COEs for. That should keep the Cat A premium from plunging," he added.
He also pointed out that the popular brands were still collecting orders however the orders were definitely far from the rate that they used to.
But while many in the industry are complaining about the weak market, one Sales Manager is seeing some small signs of renewed interest.
Now that the 60-day grace period for the used car market is ending and most of the pre-owned car dealers have cleared their stocks, the Sales Manager believes that buyers are slowly returning to the new car market.
As for the ongoing illegal practice of overtrade, or extending a discount in the form of a higher trade-in value, he expects it to disappear soon.
"You can't have any rebates in the sales agreement or the bank will pick up on it and call you up to question you. The full impact of the financing restrictions is slowly kicking in. There is no other option for car buyers," he said.
"The Cat B premium may slip by a few thousand dollars but I don't expect Cat A to drop," said the Managing Director of a mass market dealership. "Some distributors still have a backlog of orders, which were collected at low prices and which they have not been able to secure COEs for. That should keep the Cat A premium from plunging," he added.
He also pointed out that the popular brands were still collecting orders however the orders were definitely far from the rate that they used to.
But while many in the industry are complaining about the weak market, one Sales Manager is seeing some small signs of renewed interest.
Now that the 60-day grace period for the used car market is ending and most of the pre-owned car dealers have cleared their stocks, the Sales Manager believes that buyers are slowly returning to the new car market.
As for the ongoing illegal practice of overtrade, or extending a discount in the form of a higher trade-in value, he expects it to disappear soon.
"You can't have any rebates in the sales agreement or the bank will pick up on it and call you up to question you. The full impact of the financing restrictions is slowly kicking in. There is no other option for car buyers," he said.
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March 2025 | 2nd BIDDING
NEXT TENDER: 09 Apr 2025
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CAT C$70,089
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