You are talking about return on investment. Profit margin = net income/total sales. It can never be > 100%.PNGMK wrote:ARF (PARF) doesn't account for it. A corolla with an OMV < 20k has an ARF of 100%. There's still a bloody big hole to fill!
I did miss the 20% of OMV excise tho.
Item Corolla SGD
COE 62000
CEVS-5000
OMV 18700
PARF 18690
Excise 3740
Total COG $98130
Profit $23758
Final Price $121888
Profit Margin 127%
Sorry but how do you derive 147% 'profit'? I can't make head nor tale of that.PNGMK wrote: COE $62000
CEVS $-5000
OMV $18700
PARF $18690
Total COG $94390
Profit $27498
Final Price $121888
Profit Margin 147%
Should have been 147% markup. I just calculated Profit/OMV.... to get a markup.JR8 wrote:Sorry but how do you derive 147% 'profit'? I can't make head nor tale of that.PNGMK wrote: COE $62000
CEVS $-5000
OMV $18700
PARF $18690
Total COG $94390
Profit $27498
Final Price $121888
Profit Margin 147%
This is an issue for sure... some of the dealers are definitely shrinking their premises and this cost has hit some parallel importers as well.earthfriendly wrote:How much do the car dealers pay in rent? Show room cars take up quite a bit of space. For cities with high density (Manhattan, HK, Singapore), one of the major cost of doing biz is the rental of real estate.
The volume of cars sold by Singapore dealer is certainly not small especially for established brands.Wd40 wrote:You are talking about return on investment. Profit margin = net income/total sales. It can never be > 100%.PNGMK wrote:ARF (PARF) doesn't account for it. A corolla with an OMV < 20k has an ARF of 100%. There's still a bloody big hole to fill!
I did miss the 20% of OMV excise tho.
Item Corolla SGD
COE 62000
CEVS-5000
OMV 18700
PARF 18690
Excise 3740
Total COG $98130
Profit $23758
Final Price $121888
Profit Margin 127%
Also, you are using Australian sale price as your base. Australian dealers do much higher volumes. How many cars does a Singapore dealer sell in a month? They need to keep those margins per car for it to make sense.
Compared to what? There are about 500k private cars in Singapore. We have less car per capita than NYC, London, or Tokyo. Assuming 1/10th cycle per year (which they don't), then that is 50k car sales per year. That is peanuts compared to nearly every other first-world market.ngwellyn1994 wrote: The volume of cars sold by Singapore dealer is certainly not small especially for established brands.
+ the COE.Strong Eagle wrote:^^^^^^^^^^^^^^^^^
+1. It's low volume combined with exorbitant real estate prices that drives the cost of new cars through the roof.
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