otuaauto

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Singapore car sales lingo, so you can speak like a dealer - Part 1

Looking to buy a car in Singapore? If this is your first time, you will be thrown a bunch of acronyms and terms that are truly unique to Singapore. It is important that you understand our local car sales lingo to avoid making the wrong decisions while shopping for your next car. Let otua.sg guide you through, so you can make a better decision before buying your car. Authorised Dealers (AD) or “Tor Kor” “This Mercedes Benz GLA is from Authorised Dealer one!” The big boys with the glitzy car showrooms. The term authorised dealers refers to the mega brands like Borneo Motors or Cycle and Carriage. They are dealerships that have the actual distribution rights for a certain car brand. When shopping for a used car, the term “Authorised dealer” is often used by car dealerships to indicate that the car was sold by an Authorised Dealership and was maintained by them. Do note that this may not be true as most Singaporeans tend to stray away from the Authorised dealership workshops after the warranty period to save costs. Parallel Import (PI) “This Honda Vezel is Parallel Import one, made in Japan!” Parallel importers are not appointed by the manufacturer to be the official local distributor. They often get their cars directly from a factory or overseas distributor and import them to Singapore. They are often seen as the preferred choice for some car buyers since they are often more affordable. Certificate of Entitlement (COE) The COE is what makes Singapore car ownership unique from the rest of the world. New cars are registered with a 10 year Certificate of Entitlement. Car owners can choose to renew their COE when it expires or dispose of the vehicle. This is one of the main reasons why Singapore has one of the youngest fleets of cars in the world. The COE value is determined twice a month through a bidding process. Guaranteed COE Since there are a limited number of COEs during every window, some new car dealerships may sweeten the deal by offering you the prospect of a Guaranteed COE as they sell commercial vehicles. Do note that, there are often terms and conditions attached to it, such as top-ups, number of bids etc. This is the COE package that is usually recommended for inexperienced car buyers. Non Guaranteed COE Non Guaranteed COEs are usually more attractive during periods of high COE Premiums. Cars sold with a non guaranteed COE tend to be cheaper. Should the dealer be unable to obtain a COE for you, he will refund the deposit. The agreed bidding period is usually 3 months. We recommend that this package be avoided unless you are confident that COE Premiums will fall in the near future. Paper value (or “paper”) “The scrap price for your 2010 Honda Civic is Paper + $600” The paper value is the projected rebate that the authorities will pay you in the event that you deregister your car from Singapore roads. This is often a combination of the PARF (Preferential additional registration fee) rebate and COE rebate. The paper value is often used as the base price when car dealerships or Car marts in Singapore offer to buy your vehicle. Body value (or “body”) “Your 2010 Toyota Vios is due for scrap already, we can only offer Paper + Body” The body value is the price that exporters/scrap yards offer you when you decide to de-register your car from our local roads. The body value fluctuates regularly according to export demands as well as currency changes. Scrap Value The scrap value of your vehicle is the PARF rebate of your car at the end of it’s COE life. The current calculation for your scrap value is: Additional Registration Fee / 2 The scrap value is an important figure for determining the depreciation value of your purchase; which we will cover next. Depreciation (or “depre”) “This BMW 320i is the cheapest unit in town! Only 10k depre” Arguably the most important factor when shopping for your next car (second only to car condition). This is the amount of financial value your vehicle loses over time. Usually calculated annually, the formula is as shown below: [(Purchase Price - Scrap Pri

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Singapore Car News - COE supply increases due to more cars deregistered in July 2020

With increased vehicle deregistrations (aka scrapped/exported) in July 2020 along with the prorated return of quota from the suspended COE bidding during circuit breaker, COE supplies are set for an increase. In the most recent 19th August COE bidding exercise, the COE Premiums have seen an increase across the board. This is the second consecutive bidding exercise to see COE Premiums increase across all categories. Category A COE Premiums are currently standing at a 12-month high of $35,710.00. This is an increase of $2,701 (8.2%) from the previous bidding exercise. Category B COE Premiums see a smaller increase of $1,700.00 (4.6%) to $38,802.00. The current 12-month high Category A COE premiums are largely caused by the backlog of new car registrations when COE bidding exercises were suspended during the circuit breaker. Most new car dealers that we speak to, do not expect COE Premiums to increase or decrease significantly due to weak economic conditions while many car dealers are still struggling to clear their backlogs of new car registrations. LTA data indicates that COE supplies are projected to increase for the November 2020 to January 2021 window. Assuming car de-registration numbers for August 2020 and September 2020 follows July’s numbers, the market can expect a 5% to 10% increase in COE supplies. Category B COE quotas are expected to see a relatively large increase (14% to 18%) while Category A COE quotas are expected to see a slim decrease. A big increase of Category B de-registrations are also indicative that used car dealerships are expecting consumers to swing towards more frugal options during this uncertain economic conditions. Should the projected expansion in Category B happen, we can expect COE Premiums for larger cars to taper downwards towards the end of the year while Category A COE Premiums remain stable. What does this mean for you as a car buyer? New car prices are expected to remain steady and stable in the short term. While COE Premiums might have increased across the board, it is still relatively affordable compared to the highs of 2013 where Category A Premiums shot up to $92,100.00 or the more recent 2017 high of $52,000 for Category A Premiums. A walk down the authorized dealerships will show you that demand is still relatively healthy as showrooms are still packed over the weekends. Currently, there is still an estimated backlog of 1000 new car registrations for both COE Categories. It would be difficult to expect COE Premiums to correct downwards any time soon. As for the used car market, there are mixed views from different dealers as well as car marts in Singapore that we spoke to. While June and July have shown a huge increase in used car sales, August has proven challenging for many used car dealerships as transaction numbers correct downwards; we have attributed the increase in demand in June and July to higher car deregistrations and revenge-shopping due to circuit breaker. While a higher COE Premium tends to be better for the used car trade, the current COE Premiums have not deterred Singaporeans from visiting the new car showrooms. Thus, we do not expect used car prices to see a major spike in prices. We do however, expect demand for used cars to grow stronger as long as COE Premiums continue their upward trend for the next 3 to 6 months. Want to know more about your car valuation? Feel free to reach out to us, and our Client advisors will be more than happy to guide you through. Consign with Otua for the best prices!

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Latest Guide to ERP Rates, Gantries and Operating Hours in Singapore (August 2020)

Here’s the latest guide to the recent changes implemented on the Electronic Road Pricing (ERP) gantries, rates and operational hours in Singapore. Our local ERP network has long been the bane of drivers and ride-hailing customers alike. We are here to guide you through and equip you with the knowledge to lower the running costs of your transportation. Since the circuit-breaker ended, the Land Transport Authority (LTA) has restructured the frequency of ERP rate reviews from quarterly to once every 5 weeks. This is supposed to allow them to adjust ERP charges in conjunction with reduced or increased traffic. As many of us start to commute to work once more, 4 ERP gantries have resumed operation as traffic starts building up around the island once again. To manage traffic congestions on the CTE during peak hours, the following ERP gantries have had their rates revised: ERP Gantry with Time, Current Rate, Revised Rate (w.e.f. 31 August 2020) 1. Southbound CTE Auxiliary Lane to PIE (Changi)/ Serangoon Road Time: 7:30am – 8:00am Current Rate: $0 Revised Rate: $1 2. Northbound CTE after PIE (Set of 2 Gantries) Time: 6:00pm – 6:30pm, 6:30pm – 7:00pm Current Rate: $1 Revised Rate: $2 3. Southbound CTE before Braddell Road Time: 8:00am – 9:00am Current Rate: $1 Revised Rate: $1 4. All other gantries Time: All times Current Rate: $0 Revised Rate: $0 With the next ERP rate review scheduled for the end of September 2020, you can expect more gantries to resume operations as well to manage traffic flows. We will continue to keep you updated with the latest changes on our local roads, so be sure to check back with us! Looking to sell your car in Singapore? Consign with Otua to get the highest price for your commercial vehicle. You can check more about us at otua.sg

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Ways to lower your car insurance premium!

Motor insurance is an essential requirement be it if you are buying a brand new car or a used car from a car dealership or car mart in Singapore. Driving on the road without motor insurance is actually illegal in Singapore. We believe that a car is an essential and a necessity be it is your intention to use it for commercial purposes or simply to ferry your family from point A to point B and to travel for work. Here are some tips to lower your insurance premium! Opt to increase your insurance excess The excess is the amount of money you have to pay first before you can make a claim. For example, your insurance excess is $500. This means when you are making a claim, you have to pay $500 out of your own pocket before your insurer handles the rest of the claim. Though, with a higher insurance excess, you will get a discount on your premium, this also means that in case of an unfortunate event, you must be able to fork out a little bit of extra cash at that very moment. Opt to visit the Insurer-Authorised Workshops Every insurer has a panel of workshops that you can send your car for repairs and accidents. However, there are car owners who prefer to repair their vehicle at their preferred workshop. If you insist on visiting your preferred workshop there will be an additional markup on the insurance premium. Hence, by agreeing to visit only the approval panel of workshop by the insurer, your premium will be lowered again since most insurance companies would have a slightly more expensive plan that lets you choose your own workshop Avoid purchasing a cars with modifications Every insurer will have a list of add on premiums for your vehicle’s enhancement or modifications. If you declare your modifications to the insurance company, your premium will definitely increase. However, if you do not declare your modifications, you may experience difficulties when making a claim in a case of an unfortunate accident. No claim discount (NCD) No claim discount is a reward from the insurance to the driver for good driving behavior. Basically, if you have been driving for a year without any insurance claim, you will be given a 10% NCD. Your NCD will be at 50% after 5 years of driving without any insurance claim. 50% NCD also means a 50% discount on your premium. So, if your premium is S$1000 a year, after the 50% NCD has been deducted, you’ll only have to pay S$500 for your premium! Certificate of Merit (COM) A Certificate of Merit (COM) is by the Traffic Police to show that a person has been driving safely in Singapore for the past 3 years without any demerit points. By attesting to your safety records as a driver, you are entitled to more discounts to your insurance premium! In short , nobody wants to pay an extravagantly high amount for their insurance premium. Especially during your drive away when you also have to prepare your first installment payment which will cause a dent on your wallet. Do start alert and drive safe from everything you are behind the wheel. We understand that everyone has different needs. When you purchase a car from otua.Auto, we will provide you with 6 insurance quotations with different types of coverage. Otua Auto is also able to provide you with a 12 months credit card installment plan for your insurance purchase! To consign with Otua and find out more about our services, please feel free to drop us a buzz in email/whatsapp or Facebook.

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Car Mart Singapore - Otua Car Dealerships

Otua Connect is what we do and how we add value to our customers. We connect you directly to the keen buyer of your pre-loved ride to fetch you a higher price compared to the traditional trade-in. Consignment selling is the new and upcoming way of selling cars in the future, over car marts Singapore. Many people do not have a good grasp on what consignment selling means. 1) There is no need to leave your vehicle with us 2) Both our Seller and Buyer are able to meet and negotiate on the fairest price. 3) There are really no hidden charges that pops up at the end of the deal 4) There will be a test drive indemnity form signed to protect the best interests of everyone. Our sellers are guided to price their vehicles tactically to ensure that they are able to transact at the fairest price. This is where most of our efforts comes in, trying to educate our car owners that attempting to sell their car above the market value is quite often a fool’s errand; more often than not this works against the seller’s interests as it prolongs the sales process needlessly while the car continues to depreciate in both condition and financial value. Trying to look and sell at what car dealerships are advertising are actually very inaccurate. The dealerships have to groom up the car, repair the wear and tears, pay a commission to the salesman and set a margin for the company. The actual buy in price is really low. For our car owners, Otua.sg will advertise their car on paid classified portals or even produce a video so that they get the maximum exposure for their listing while we market them. We have transacted over 500 vehicles and these are only made possible with a team of dedicated client advisers to manage both sides of the spectrum, assisting on all enquiries, offering a variety of financing packages, affordable insurance quotations and convenient trade-ins. For our car buyers, we always encourage a workshop inspection before a sale and we have an optional extended warranty program available for purchase so that there are no sudden financial surprises on hefty repairs for our buyers! Consign with Otua and start selling with us now! https://otua.sg/sell-car/

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Buying a car: Different loan packages and what they mean to you

Singapore is one of the most expensive countries in the world to own a car. It comes to no surprise that over 95% of the 1000 deals that we have successfully transacted requires a loan. In this article, Otua Auto explores and breaks down the different types of loan packages that are available to you as a consumer.

Bank loans

At otua.sg, we almost always encourage our car buyers to apply for a bank loan compared to the other options. The reason is simple - Bank loans are the cheapest loan option available to buyers, so you can get the best price for your car. They are also the easiest to understand, without all the convoluted terms and conditions that are often overlooked and very much unfair to the average consumer.

The only disadvantage to bank loans is that they tend to be strict with their applications as they have to adhere strictly to any MAS guidelines that are imposed on them.

Pros

Cheapest financing option

Loan applications tend to be faster

Easy to understand

Easy and fast loan settlement

Cons

Strict requirements

In-house financing

Despite their name, in-house financing actually refers to 3rd party finance companies/institutions. These loans tend to have much higher interest rates that start from 3.XX% and upwards of 5%. They are often preferred for their lenient application process.

One of the core benefits of in-house financing is that it does not reflect on your total debt servicing ratios. So for car buyers who are looking to purchase a house in the near future or are looking to apply for business loans, in-house financing could be the ideal choice.

Do take note that the terms and conditions for inhouse financing are often harsh and brutal. With expensive early settlement fees and charges to exorbitant default penalties, it should be well noted that your payments are prompt and timely to avoid a painful bill at the end of the month.

Pros

More flexibility in their loan applications

Does not affect your total debt servicing ratios

Cons

Loan processing fees that starts from $200 to upwards of $1000

Much higher interest rates 

Some of the finance companies are extremely trigger-happy with tows when you are late on your payments

Expensive fees and penalties 

Lease to own schemes

Gained popularity recently. There are probably a 100 different variations out there, but the basic concepts stay the same. The actual ownership of the vehicle actually belongs to the financing company. Some of the LTO schemes include free servicing, road tax and insurance.

Generally, this is seen as a rental service provided by the finance company to you, and after a predetermined number of years, the vehicle ownership is then effectively transferred to you. 

These types of loans often come with attractive marketing headers like “Zero dollar drive away” or “Zero dollar down payment”. However, the terms and conditions are almost always extremely harsh and you can expect to drive the car till the end of its COE or you may suffer heavy penalties that can be upwards of 50% of the original car purchase price.

Pros

Fuss free “car ownership”, since most of the LTO schemes provide free car servicing etc.

Most of them provide 100% financing, so you can literally drive away $0

Cons

Insanely harsh penalties and settlement charges

You do not really own the car

Be prepared to drive the car until its end of COE to avoid heavy charges

If you should decide to “sell” the car early, the process is often convoluted and difficult

Expensive monthly installments, since you are really renting the car instead

Balloon Scheme

Relatively popular in the early turn of the millennium, the Balloon scheme financing is basically a loan on the vehicle’s purchase price less its Preferential Additional Registration Fee (PARF). Again, there are many variations of this scheme, but in general, they all result in a lower monthly payment for the car. However, your PARF still has to be paid eventually (usually at the end of the loan period).

The balloon scheme is by far the most complicated loan option available for consumers. It has since lost popularity due to it’s much higher interest rates and also most finance companies prefer LTO schemes which are of lower risk for them. 

Since the balloon scheme is pretty much the “ancestor” of the lease to own scheme, they have many similar pros and cons.

Pros

Much much lower monthly installment compared to all the other schemes

Some balloon schemes allow for lower down payment

Lower down payment often translates to better or fancier cars

Cons

Heavy and expensive penalties and fees (especially early settlement)

Be prepared to drive the car till the end of the loan tenure

You lose the PARF rebate for your car

Extremely detrimental if you “total loss” your car or if your car has irreparable damage

When it comes to finding the right loan packages for your car purchase, there’s no 1 size fit all solution to it. Proper financial planning is crucial. It’s always best to get expert advice to help you make an informed decision. If you need help deciding on which loan package fits you best, feel free to reach out to the client advisors at Otua Auto. As a premiere car dealership, we offer a full range of financing options and have tie-ups with various lenders so you can always be sure that we are offering the best financing options to you.

Why is it important to understand the selling price of your car?

Assuming you have always meticulously and religiously maintained your car - The condition is perfect, accident-free and with servicing records to boot. Now, what about your asking price?

Without a doubt, price is almost always the most important factor in car sales, and here’s why.

The perfect time for you to get the best price for your car (period of best opportunity for selling your car at a fair and reasonable price) is always *now*. With the wonders of the internet and websites like SgCarmart and Carousell, prices, especially for car resale, in Singapore, are transparent to every car buyer. Buyers who have been spoon-fed with pricing information from said websites have been looking and waiting for the right car to pop up in the market. If your car is priced correctly from the beginning, you are in the *best position* to get the highest price for your car while at the same time, attracting the maximum number of buyers who are sincerely interested in purchasing their next car .

If your car is priced too low, you might attract plenty of buyers. But you could stand to lose thousands of dollars on probably the 2nd most expensive item you own

If your car is overpriced, you will find it extremely difficult to attract buyers to your wonderfully maintained car, with little chance of any offers to pay your unrealistic price.

Depreciation is always working against you

We see this happen far too often. Car owners tend to prefer “stress-testing” the market for a month or 2 (sometimes 3) before deciding to follow market prices. Many of them are gambling on the off-chance that there might be a “Robert” who will accept their unrealistic prices. 

Unfortunately, these gambles often turn against you, as your car continues to depreciate its value on a daily basis. The average Japanese car depreciates at a rate of $22.50 per day and the average German continental car depreciates at a rate of $33.35 per day. Stress testing the market for 2 months pretty much meant that you have lost almost $2,000 in a short period of time. 

If you aren’t willing to spend $2,000.00 on lottery tickets, why do that to your car?

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How Long Can Your Car Stay Idle Without Being Driven?

The average number of days your car can stay idle in the car-park without being driven is about 15 days. Even though we are already well into phase 2 of re-opening of Singapore, many of us are still working from home. The specialists at Otua Auto recommend that you start your engines every 2 to 3 days and here’s why:

 1. Keeps the car battery charged

 The car engine uses the alternator to charge the battery. Thus, Otua Auto recommends that you start your engine occasionally to keep it charged. If your vehicle is left parked for a prolonged period of time (more than 7 days) without use, you might be faced with a painful bill at the end of it.

2. Prevents your tires from going out of shape

There are two main reasons why the tyres will go out of shape. Firstly, your tyres might be already worn out in the first place. The lack of movement on the tyres along with Singapore’s relatively harsh weather conditions can warp the shape of the tires or make the rubber materials more brittle.

 Secondly, when your car is parked for a long period of time, the surface area that is in contact with the road will form flat spots which cause the tyres to lose air.

3. Prevents cockroaches, insects or unwanted guest from residing in your car

 Insects fester in the car due to food crumbs and open airways that are in the car. When there is a lack of activity within the car, it promotes the growth and spread of said pests. Thus, it’s important to wash and maintain the car’s cleanliness even if you do not really use the car frequently.

Older car parks also tend to have the thrash disposal centre located in the middle of the open-air car park. Cars that are parked near to garbage collection tend to face more problems with pests. This damage could, in turn, significantly diminish the resale value of your car, so if you want to get the highest price for my car, you’d better take care of it. 

 4. Keeps the engine and gearbox parts lubricated and active to prevent any damages

 We are not going to go into the technical details, since that would be a blog topic all on its own. A car is a complicated machine consisting of many moving parts. These parts need to be lubricated regularly and lubrication happens as your car is being utilised and driven around.

Ironically, when your car is left idle at the car-park for long periods of time, the relevant gears and moving parts fail to receive the necessary lubrication and this causes increased wear and tear on your car. This is actually one of the key reasons why we at Otua Auto recommend that your servicing schedule be always at intervals of 10,000 km or 6 months, whichever comes first; because even if your car is not utilised frequently, the vehicle still needs that fresh coat of lubrication that comes from the change of engine oil etc.

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What happens if you get into a car accident in Singapore

Do you know? There is an estimate of 7690 road accidents involving injuries in Singapore yearly, this means that every day there are more than 20 serious road accidents happening around the island.

Let us share with you a quick guide on what you should do if you or your loved ones are involved in a road accident. <Well, first of all, check if there are any injuries. A police report is only necessary if there are any injuries involved.>

1. Refrain from moving your vehicles.

2. Take as many photos as you can of the damage incurred for both vehicles.

3. Ensure that you have exchanged personal contact details; we suggest giving the counter-party a miss-call to ensure the contact number is valid.

4. If the damages are light (small dent or just scratches), you can choose to privately settle the matter.

5. Feel free to check with OTUA on the potential repair cost, even if it's just a minor repair.

6. Otua Auto can also provide assistance should you decide to proceed with insurance claims. If the accident makes you think of "ways to sell my car", then Otua can help you answer the query of "best price for my car".

7. Not only do we handle the sales and purchase of cars as an online-based car dealership, we have a panel of professional workshops that handle insurance claims!

More interesting data:

120 people were killed in traffic accidents in 2018

Elderly pedestrians accounted for two-thirds of all pedestrian fatalities. (1 in 2 accidents involving elderly pedestrians was due to jaywalking)

Motorcyclists and pillion riders account for about 1 in 2 of overall road fatalities

73% of heavy vehicle drivers speed when traffic is light

Singapore’s road fatality rate of 2.73 per 100,000 citizens is higher than London, Hong Kong and Tokyo.

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500 Transactions Later, 5 Important Car Buying Lessons We Have Learnt

1. Understanding the need of our buyers first

From all these years of working and dealing with buyers and sellers all over, we have been able to connect with people from all walks of life.

Young and enthusiastic drivers – Who just got their driving license and are raring to shop for their first car.

Young adults – Who needs to commute frequently due to their career and require a fuss-free workhorse.

Young executives – Young and ambitious professionals ready for their next upgrade into an entry level continental car like the BMW 3 Series or the AUDI A4.

The next Takumi Fujiwara – JDM lovers who love even more to modify their vehicles and build their next Tamiya car.

Family Man – Who requires an MPV to fit his family of 5-7 comfortably.

Mature Businessman – Who wants a BMW 5/7 series, Audi A6 or Merc Benz E/S class.

The list goes on and on.

The most important lesson that we have learnt is to listen and understand our buyer’s needs. Being able to empathise with our customer’s needs and wants allows us to advise and recommend them a car that would better suit their needs.

2. Being realistic with the offer price

A very huge chunk of our time is spent on managing customer expectations (both the buyer and the seller). This is usually due to unrealistic offers or asking prices by either party and honestly, we don’t blame them; who doesn’t want to buy as low as possible while selling as high as possible?

Car sellers > Be ready to offer some discounts and send your car for a workshop inspection. We know that you search for the "highest price for my car" but it's always ideal to check for the "best price for my car". Always remember that you are competing with car dealerships and car marts in Singapore who are offering cars that are usually spruced up with a warranty and lemon law protection attached.

Car buyers > The beauty of buying from a direct seller means you get an honest opinion of the vehicle; and more often than not, that means the car is not going to be in “showroom condition”. While prices are usually negotiable, please refrain from asking for huge discounts that are usually unrealistic.

As much as we try to filter away unsavoury buyers before a viewing, there will be occasions where the buyers still give a lowball offer, sometimes below scrap value due to their lack of market knowledge.

Handling hundreds of enquiries everyday have taught us to ensure that our buyer put on a realistic offer price before the viewing happens. I mean seriously, if the seller is willing to give you a $5,000 discount, are you sure you dare to buy?

3. Providing financial advice 

A car is likely the second most expensive purchase you would make after your house.

One of the mandatory steps during the purchase process is to provide our buyers with a financial breakdown – advising them about the (i) Loan Amount, (ii) Interest Rate and how much is the (iii) Monthly loan repayment amount.

We frequently noticed that many (young) Singaporeans tend to punch above their financial weight and while we totally understand that a Mercedes-Benz E63 AMG is much sexier than a Toyota Vios, we normally advise our customers to be honest with themselves and not strain themselves over with the budget. 

It’s extremely important for us to ensure that our buyers are buying within their financial capabilities. The honest truth is that it makes little to no difference to us whether you purchase a small hatchback or a luxury sedan. We really just want our customers to be happy, since we are all here for the long haul.

4. Workshop Inspection

Being a consignment agent means that Otua Auto has to keep both our buyer’s and seller’s interest in mind. As we pass on the savings to the sellers, we also want to make sure that our buyers are treated fairly. While reasonable wear and tear are to be expected, we have to make sure that the powertrain of the vehicle is in good condition. This includes:

Engine

Gearbox

OBD-2 Scan to check for faults/defects

Car air conditioning

Suspensions and more

Unlike most dealerships, we would never say our cars are in perfect condition. Why would we do that when we know that most used cars would have some kinks or minor issues that need to be fixed?

That is why we always recommend buyers to send the car for an inspection.

5. After sales support 

After every successful deal, we would usually encourage our buyers to take up a one year warranty program with us at only $1.50* per day for a year. This is an excellent opportunity for our buyers to really protect themselves from any nasty surprises. An engine overhaul will easily cost about $2000-$3000 (sometimes more), so why take chances? 

Otua Auto provides full fledged services of car towing, car servicing and repairs. For all our customers, do feel free to contact your respective client adviser, should you need any after sales support.

Yes! So these are the 5 important lessons we have learnt and will ensure that all our buyers are assisted and advised accordingly.

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Why You Are Getting A Low Trade-in Price

Getting low trade in prices since last month? The global economy is going through a tough time. We all are bracing up and doing our part in the fight against the Covid-19 pandemic. 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 are introduced everywhere to contain the virus. Aeroplanes, ships and cars are not allowed to commute in and out of any countries.

A huge part of typical car sales to sell used cars in Singapore depend heavily on the scrap/export market. For example, if you are changing your car because its COE is going to expire, then your car will either be dismantled for parts to our neighboring countries or will be exported to countries like New Zealand, Africa etc for resale. Because of this, you may have experienced getting lower trade in prices over the last 6-10 weeks. You may be thinking that your car still has 2-4 years to go, it should not be scrap/exported yet but instead registered at a car dealership or car mart in Singapore. 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 scrapped/exported because your vehicle rebate amount added with 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, there has been a complete halt to the scrap/export market. Local exporters have zero means to dispose of your car, and 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 if what you wish to do is "scrap my car for higher". However, you can still proceed to the local LTA authorized scrap yard. Though they may not offer the highest price, they can still help you 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. This will allow us to fetch a higher price for your vehicle.

You may ask how. We pass on the savings to you! What we do earn from is commission from the loan, 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? Consign with Otua car dealers and we will connect you with another buyer as soon as we can!

Click here to start: https://www.otua.sg/sell-car

Wash your hands, stay at home and be safe everyone!

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5 Important Car Selling Lessons We Learnt After Selling More Than 500 Cars in a Year

Having transacted over 500 cars every year, here are 5 important lessons Otua Singapore have for us to help you sell your car more efficiently.

1. A picture speaks a thousand words

There are more than 10,000 used cars available in car dealerships and car marts in Singapore at any point of time. Most used car listings are given less than 2 seconds to make a lasting impression to the potential buyer. A well-taken photo not only helps you attract more potential buyers, it also enables to properly showcase the excellent condition of your car.

Here are their tried and tested lessons in selling a used car:

An eye-catching photo attracts buyers to your listing.

Drive it to an open area with plenty of sunlight; do not use a multi-storey carpark or enclosed area.

Get the interiors of the car captured neatly. It is good to take clear shots of your dashboard and seating arrangements. Remember to clear the clutter first to show that your car is always kept in a clean condition.

Make sure the entire car is within the frame. You should always have clear photos of the front, rear and sides of the car. Avoid cropping the car in the photo as this might imply that there are dents or scratches that you do not want to show. Customers appreciate honesty far more and any well-hidden surprises during viewing will be a deal breaker.

Lookout for reflections. Avoid shooting with buildings or trees behind you.

Please take 10 external and 10 internal photos to help you finally choose the best photos.

2. Get your car washed professionally with interior cleaning before viewing.

Ant infestations, cockroaches scurrying across the dashboard, used kleenex tissues, pieces of candy stuck on the car mat — all fine examples of what shouldn’t be in your car. We have seen our fair share of deals lost because the car is dirty or infested with bugs.

Having a dirty car is a total turn-off to customers.

3. Be extra polite with the buyer. The ‘extra’ goes a long way.

Our client advisors at Otua Auto are always available to facilitate and assist your vehicle viewings. However, there may be occasions where you will interact with the buyer or their family members and rude comments might be made about your car.

Stay calm and let us help you handle the pickle. More often than not, it is just a negotiation tactic that the buyer uses to attempt to lower your price. Our client advisors are trained to handle buyer expectations and give a neutral and objective opinion during test drives.

4. Be truthful about what your car has been through

Most buyers will ask if the car was part of any accidents previously or if there are any specific issues to take note of. It is highly recommended that sellers come clean and let buyers know about any potential defects or historical accidents, however minor. In fact, this would be the best time to whip out your servicing records.

Remember that there will be a test drive and a workshop inspection that would reveal the condition of the car to the buyer; so there really is no reason to hide or lie about the car’s condition or history.

5. Leave a squeaky clean car with no surprise hidden gifts for the buyer.

After the viewing process and confirmation, we fix the price and the date of handing over the vehicle. So, do remember to clear out your car!

Some common things that people leave behind carelessly include cash cards, coins, umbrellas CDs or SD cards.

Otua car dealers have tremendous insight into queries such as “ways to sell my car” or “highest price for my car”. Consign with Otua to easily sell your car!

[otuaauto]

COE Rising? Learn How That Affects Current Car Owners and New Buyers

Certificate of entitlement (COE) premiums have continued their upward trend for the 5th consecutive time (as of 17th April 2019). Can we expect COE Premiums to continue the climb up? How will this affect you as a car owner? Is this the right time to get a new car? Should I consider this when looking for ways to sell my car or scrap my car for higher? Let us explore these topics below.

2018 had been a great year for car buyers with regards to COE premiums. Car buyers enjoyed a year-long period of relatively low COE prices with Category A (aka CAT A) premiums floating at $23,000 to $33,000. What was most surprising was that Category B (aka CAT B) premiums (which are traditionally higher than CAT A) have seen lower prices than CAT A COE premiums, on an average.

Mostly, COE trends tend to happen over a prolonged period of time. While fluctuations in COE Premiums are a given factor, sharp changes are typically rare and happen only during a stage of “economic crisis” as well as exceptionally specific situations. So the important question is will COE premiums continue to climb up?

The short answer is “probably yes”. Nobody can really predict the future. However, we can base our predictions on historical data and current market situations. Historically, the average COE premium lies around $49,644.00 and 2018 was only noted as an anomaly. The currently rising COE Premiums could be attributed to a few causes:

COE growth was cut to zero. New car dealerships (especially authorised distributors) and enjoyed a phenomenal 4th quarter in 2018 and 1st quarter in 2019 in terms of sales. These cars are starting to reach Singapore and getting registered. We have enjoyed COE premiums at its lowest in 8 years and COE Premium tends to normalize to its average prices (barring any economic or specific situations). While we expect COE Premiums to continue that upward trend, do note that it is absolutely normal for prices to drop in the next 1 to 2 bids as consumers contemplate their actions. It is extremely rare to see a straight line increase in prices.

While COE Premiums are climbing quickly, current COE Premiums are still at a discount from its average levels of $49,644.00.

Having said that, you should never let car prices be the only motivating factor to your purchase. However, if there are changes in your family and needs, the answer is a definite yes. Do take note of that; we do expect COE Premiums to continue their upward trend and if you are buying a new car, please ask for guaranteed COE to avoid disappointments or potential disputes with your dealer.

How does this affect me as a car owner?

If you intend to continue enjoying your current car? Nothing really. However, if you have plans to consign with Otua and sell your current car, then yes, higher levels of COE Premiums means that demand and prices for used vehicles will rise in tandem.

While the above is true, do take note that there really isn’t a best time to look for "highest price for my car". One of the most common question that our customers at OTUA Auto ask:

“If I wait, will I be able to sell higher?”

The answer is “99.99% of the time, no”. While used car demand and prices will rise or fall according to COE Premiums, the effects are often delayed. Furthermore, one has to always remember that cars are a depreciating asset; a regular Japanese car depreciates at a rate of $800 to $1200 per month and these figures are compounded for Continental cars. There is almost no chance for a regular car owner to sell his car for more “months later”.

Also, even if you were able to capitalize on any potential sharp increase in prices for your current car, your next purchase will almost definitely be just as expensive. Unfortunately, we are all at the mercy of the markets and more often than not, if you sell high, expect to buy high as well.

At OTUA Singapore, our Client Advisors are trained to sniff out potential market changes and update you accordingly so you can fairly sell used cars in Singapore. You can always drop by our lounge during our operating hours for a discussion on your car and how we can help you sell better.

[otuaauto]

Planning to Buy a Used Car? Use This Checklist to Ensure You Have Made the Right Choice!

Understand your own needs — be honest with yourself.

Buying  a car is always exciting! From regular vehicles that help you reach  your destination to exciting sports vehicles, the options are truly  endless. Even though we all dream of riding expensive sports cars, it is  important to remember to work around our budget and utilization needs.  When you’re looking to buy a used car, search for and finalize with a  trusted dealer like Otua car dealers which sell commercial vehicles.

Financial Planning

There are 2 essential factors here to take note of.

Your  TDSR (Total debt servicing ratio): This affects your future credit  rating. Young couples who are applying for a BTO have to take note of  this. The total income and finances committed to service all types of  loans combined is earmarked at 60%. Based on our humble experience,  servicing a monthly repayment loan that takes up 20%-30% of your salary  is the sweet spot. Your first down payment will be a hefty one and it’s  best to be prepared for it. Let’s show you an example of the breakdown  for your first payment:

 Down payment (Usually 30% of the car price)

 First month installment

 Some car dealerships may charge an administrative fee for each purchase

 Loan Processing Fee (if you take up an inhouse loan)

 Motor insurance that ranges between $800 to $2500, depending on your No Claim Discount (NCD) and the type of car you buy.

As  your next step, find out which finance package works best for you.  While there are probably a dozen different hired purchase loan types  available in the market, it basically boils down to 2 main types:

 Bank loans (Examples: Maybank, DBS, UOB etc)

 Inhouse Financing

Here is the basic summary of each type of loan:

Bank  loans offer a competitive and attractive interest rate. They rarely  charge any loan processing fees; so they are much cheaper to apply.  However, they do record these loans into your total debt servicing  ratios, so they might not be suitable if you are looking to make a  property purchase in the near future.

Inhouse  financing is typically aimed at customers who might have weaker credit  ratings. It usually comes with a much higher interest rate (sometimes 2  to 3% higher than bank rates). There is also a loan processing fee,  ranging from $300 to $2000, depending on your credit rating. People who  are highly leveraged tend to prefer inhouse financing options since it  does not show on their TDSR.

Always  consider and contemplate your options well before opting one for your  car loan, because it can span up to 7 years; which is a long time.  Remember to buy within your means and if you have more questions about  finance packages, our client advisors at Otua Singapore are always happy to help.

Shortlisting your car

There are many ways to help you find the car of your dreams. The most common method is to go to classified platforms like www.sgcarmart.com or www.carousell.com  where you can compare and check out over 10,000 cars listed at any given time. Potential sellers who look up ‘resale car singapore’ and ‘car mart singapore’ end up finding the top reliable services like Otua Auto.

If  you are looking for a workhorse or just prefer a hassle-free car ownership experience, we would recommend that you consider Japanese or Korean make and models. In addition, take care to conduct a thorough inspection of the vehicle before finalising a transaction.

Remember  that it really depends on your needs. The cheapest car may not always  be the best purchase; rather you should find the car that caters to both  your needs and financial capabilities.

OTUA,  being the reflection of AUTO, defines an inspiring platform for the  people of Singapore to sell their vehicle. For more information, check out our website.

[otuaauto]

How to have efficient car dealerships

A used car dealership is not a simple business to run, considering the wide range of factors involved including government regulations, state of the economy, irregular sales routine, etc along with attaining both selling and buying clients through effective marketing tactics and maintaining good relations with them. Both sellers who are looking to sell used cars in Singapore and buyers who are searching for trusted second-hand cars find it difficult to conduct this business in an open market. This is where a well-oiled car mart in Singapore like OTUA Auto takes precedence to help potential clients get rid of their concerns by taking the wheel.

OTUA Auto aims to play the quintessential middleman between two customers, ready to conduct business without breaking any laws. This service facilitates the used vehicle seller with the opportunity to find prospective buyers for the sale and helps the used vehicle buyer to check out the prospective vehicles and sellers within their price range. Even though the price to pay for assigning this task to a car dealership is reasonably low, people often think that they can personally finish up all the duties of selling and purchasing a used vehicle. So, it falls upon the dealership to vigorously promote their business for the best of all personnel involved. Here are a few strategies to develop the business:

Find your spot in the game — Being in a competitive business, active marketing, and creative advertising play a huge role to promote a used car dealership. It is the need of both the business and the client to know each other and work in understanding for mutual benefits. So when the customer checks to find the best service that can be availed in Singapore, finding OTUA Auto as the leading dealership business is the most impactful result of efficient marketing techniques through print media, social media and feedback portals.

Invest for the best in the game — One of the most hard-hitting factors of selecting the right business is the rating obtained through customer reviews. This can only be ensured by providing them with world-class service in terms of communication, hospitality and sales management. Proper screening, selection as well as training of employees will help to deploy a comfortable and professional experience for the client in the sale of his/her vehicle.

Seek high-tech support in the game — A visual flair that is also aesthetically arranged is what usually influences a potential client to choose. So, a game-changing initiative such as three-dimensional projections of the vehicles with the help of the latest technology will guide to stabilizing a brand image for the business as a tech-savvy service. This will attract a larger crowd towards opting for employing a dealership.

OTUA Auto remains as an exemplary embodiment of managing a profitable and trusted used automobile dealership in Singapore. These strategies are stepping stones towards developing into a better thriving version of the business.

[otuaauto]

How to Get More Sellers

There is a certain trade that comes into play for selling and reselling products. While the selling of branded vehicles is set with fixed specifications and at fixed rates, the reselling process contains a mixed bunch of specifications as well as a lot of dynamic factors that affect the sale.

So, for budding businesses like OTUA Auto in Singapore whose core functioning is focused at making the sale easier for second-hand vehicle sellers, it is essential that they play by the right rules, ensure that all regulations are taken care of, and make it profitable for their clients to cut the deal with their interface. A person trying to directly sell their vehicle in the busy market may find it difficult to be noticed, maybe prone to being scammed by fake buyers and may find the endeavor to be interfering with their professional and personal life. By trusting a platform like OTUA Auto to sell their vehicle, this person becomes a prioritized client whose minimal involvement is only required in reaping the profit of the sale.

The question is, how to attract such potential customers to the service for their best benefit. Here are a few answers to it:

Exhibit how you stand out from your competitors - People should know that using the platform to sell their used vehicles will be beneficial for them in saving both time and money. Sellers in Singapore should be attracted to car dealerships, and proper advertising and creative promotion along with establishing the uniqueness in trade are mandatory to make them say, "I am here to sell my car with OTUA."

Ensure top-level management with high doses of professionalism - For any person willing to check up on "How to sell my car/motorcycle" or about car marts in Singapore, the business name has to be noticed. With efficient managerial systems to oversee and supervise accounting, staff control, human resources, legal services and so on, it can be guaranteed that customers are 100% satisfied with the service, leading to positive feedback, high ratings and trusted recommendations on a personal scale.

Display through technical support - It is imperative that customers are impressed by technology and more fascinated to see it being used for their needs. So, initiating a 3-D or hologram technology that will be used to attract buyers to a vehicle model, will be key to bringing in sellers to opt for OTUA Auto.

Make maximum use of social media - Online social platforms and channels are the world's largest collective forums where people check for the best-rated services. By registering the business in these channels and using them to gain publicity through effective marketing such as OTUA car dealers, there is bound to be a prospective boom in the business.

Gradually applying these strategies into effect will bring in the expected hike in clients. A truthful business with the brains to lead and deploy will find success.

[otuaauto]

How to protect yourself from a “good deal”

Spot  a car that is too good a deal to be true? Skeptical about it because  you have heard lots of horror stories from your friends? If you are  afraid of being a victim, then read this article! A 2 minutes read on  how to spot a potential scam! This will not protect you from everything  but will serve as a good deterrence.

1. How to identify if it’s an Agent Car?

An  agent refers to the authorized distributor for a particular car brand.  The additional registration fee of an Agent car is generally higher than  that of a PI car. Generally, the car plate bracket should hold the  branding of the Make. You can also make a call to the Agent and enquire  about the history of the car, if its an agent car, they should have the  full servicing records in their database. Below are some of the car  agents in Singapore.

KAH Motor — Honda

Komoco Motors Pte Ltd — Hyundai

Performance Motor Limited — BMW

Cycle and Carriage — Mercedes Benz

Borneo Motors — Toyota

Audi Center — Audi

Auto Germany — Opel

Auto France — Peugeot

Eurokars — Mazda

And many more!

There are many cases where dealerships are charged for illegal odometer tuning

https://www.straitstimes.com/singapore/transport/customer-sues-over-tampered-mileage (Credit to Straits Times)

Mileage  also means the amount of use, wear, and tear of the vehicle, hiding the  actual mileage to the buyer also means omitting critical information to  the buyer when he’s making a decision on the purchase.

3. Condition of the Car

While  everything may look like rainbows and unicorns when the exterior of the  car awes you. It’s important for you to send the car for a workshop  check

Do not believe 100% of what you may have been told about the car, always see a neutral opinion on the condition of the car.

4. Loan interest rates

Most  bank loans charges between an interest rate of 2.78% to 3.98% depending  on the type of car purchased (A parf car or a COE renewal car)

An in house loan should be about 2.98%-4.98%

You may want to check with another dealer if you are quoted anything higher.

5. Warranty Program

When  you buy a young used car (Less than 3 years old), you will be told that  this car is still under warranty. This may be true, however, you have  to do your due diligence by making sure that the warranty is  transferable.

Why is buying a car from OTUA Auto a safer choice?

We sell cars from the direct owners! This means that the chances of modification and tuning is minimal.

We  always encourage our buyers to send the car for a workshop check before  the purchase is done, paperwork will be in place to safeguard both the  buyer’s and seller’s interest

We  have a 1-year warranty program that you can choose to purchase for  peace of mind. To even qualify for this warranty program, the car would  have to go through a stringent check by the service provider! Another  layer of checks!

In OTUA AUTO,  we treat all customers like our own family. Our client advisers are all  trained to perform basic visual inspections as well as advise you on  your car purchase and car selling, simply drop a WhatsApp to our team and we will share with you about what we know with no holds barred!

Check out our inventory: http://bit.ly/otuacars

[otuaauto]

What is a good deal?

What is the right car at the right price?

1) The review of the dealership

Saw  an attractive car that you like? Before you even pick up the phone and  start enquiring about the vehicle, do a quick online search about car dealership. An easy guide will be to look at the dealership’s official Facebook page, look at the content posted and the amount of good reviews OR bad reviews they have.

2) Mileage of the vehicle

The  average ‘healthy’ usage of a vehicle should be about 20,000 to 25,000  km per year. Anything more may imply heavier wear and tear. However, a  higher mileage on the car does not always means that it’s in a bad  condition. End of the day, what is most important is that the car has  under-gone timely servicing and have it’s defective parts fixed. Always  ask for the servicing records (if any) and also send the car to a  professional mechanic to check before buying.

3) Number of owners.

The  ‘healthy’ average number of owners for a car should be 3 for a 10 year  old car. This means a change of owner every 3 years. This is a common  indicator used in Singapore based on buying/selling behavior. It is a  red flag if you see a car being sold after a year. It may imply a faulty  car that the previous owners were unable to fix.

However,  for super cars, Ferrari, Porsche, BMW M series, Lambo, Audi spyders  etc, it’s very normal to see 8–10 owners for a 10 year old car with  little mileage on it.

4) Bells and whistles of the vehicles.

While  it is cool to be able to play with the bells and whistles along with  all the technology embedded in the driver’s seat console, it really  means very little to the price if you want to resell it later. Only  purchase a fancy car if you have the absolute intention to drive it due  the COE expires.

5) How much is the used car (Less than 2 years old) compared to a new car.

To  identify what is a good deal, the rule of thumb should be about 25%  cheaper compared to the brand new car. If the price difference is minimal, you will be better off buying a new car with the options to select your car color and upholstery choices.

6) Servicing Records

In  general, a car with full servicing records will always fetch a slight  higher price because everyone knows its “health” history, what has been  replaced and what has not been changed. While it does not provide a  definite answer to the car condition, you will at least get an inkling  if the previous owner have maintained it well.

7) Vehicle Inspection

At  the last stage of the sales cycle, it’s time to do a vehicle check.  Send it to your trusted workshop and get a quick repair quote. This  would be important for your budgeting. Always set aside a budget of $500  to $1000 for your newly purchased used car, since even the best  mechanic will not be able to catch all the kinks/issues that might appear within the next 2 to 3 months of your purchase.

What’s next!

As you can see, there are many factors on deciding what’s the best buy. In OTUA AUTO,  we treat all customers like our own family. Our client advisers are all  trained to perform basic visual inspections as well as advise you on  your car purchase and car selling, simply drop a WhatsApp to our team and we will share with you about what we know with no holds barred!