Getting low trade in prices since last month? Everyone’s lives are affected by the Covid19 virus. The global economy is going through a tough time right now. Everyone is bracing up and doing our part in the fight against the Covid-19 virus. Precautionary measures and procedures have to be implemented globally to prevent any further community outbreaks. Working from home and social distancing are a norm right now. Border lock-downs were introduced by every country to contain the virus. Aeroplanes, ships and cars are not allowed to commute in and out of any countries.
A huge part of a typical car sales depends heavily on the scrap/export market. For example, you are changing your car because its COE is going to expire, your car will either be dismantled for parts to our neighboring countries or be exported to countries like New Zealand, Africa, etc for resale. With this, you may have experienced getting lower trade in prices over the last 6-10 weeks. You may be thinking, “my car still has 2-4 years to go, should not be scrap/exported”. Well, the truth is, it all depends on your COE value when the car was first registered. The rule of thumb here is, if your COE value is $65,000 and above. It WILL get scrap/exported because there your vehicle rebate amount + body price will be very similar to what the market is asking for. Hence, there is no point for the dealer to take your car in, repair it and expose themselves to a lemon.
With the circuit breaker introduced on 6th April 2020, this has put a complete halt to the scrap/export market. Local exporters have zero means to dispose your car, export processing zones are closed. This further meant that encashment of your vehicle may take 2-3 months compared to the usual 2-3 weeks. However, you can still proceed to the local LTA authorized scrap yard, though it may not offer the highest price, but it can still help out in the disposal of your ride.
otua. Auto is a consignment agent, whereby we help direct owners like yourself to find a direct buyer. We have transacted about 500 cars to date, you can also check our reviews and photos on our Facebook page (https://www.facebook.com/otuasg/reviews). This will allow us to fetch a higher price for your vehicle. How? We pass on the savings to you! What we do earn from is commission from the loan and the insurance as well as a small administrative fee that we collect from the buyer. With the market slowing down, why not use this time to advertise with us? We will connect you with another buyer as soon we can!
Click here to start: https://www.otua.sg/sell-car
Wash your hands, stay at home and be safe everyone!
The Team at otua.