On top of discounted prices, Singapore’s Honda distributor Kah Motor is giving customers the option to decide on how much they want to bid for their own COE (Certificate of Entitlement) too
Kah Motor, the authorised distributor for Honda automobiles in Singapore, has revealed an intriguing price list for the Honda lineup that will be in place until June 1 2020.
Like many other brands, Honda is publicising significant discounts – up to S$13,000, it says.
But it’s the prices in the headline – which include the Honda Jazz from $39,999 and CR-V from $94,999 (scroll to the story’s end for the full list) – which look remarkably low. But that’s because they are now quoted without COE (Certificate of Entitlement).
Kah Motor has given customers the option deciding on the desired COE amount, and the dealership will bid on the customers’ behalf when COE bidding restarts, which we believe will be sometime in June.
This means that you can put forward a figure that is as high as you are willing to pay, and should the COE price eventually exceed the depth of your pockets, you can technically still walk away from the deal.
It differs from the usual COE price package, where the dealer sells you a car with the COE included.
For instance, the least expensive Jazz – the 1.3 non-LX model – was last listed in mid-April at S$69,999, which includes a COE (at a forecasted price the dealer expects the COE to be at, or under) at six bids, non-guaranteed.
This means the dealer bids for your COE six times at or below the included price level, but ‘non-guaranteed’ means you may have to top up if prices go beyond that level). To avoid that you buy a guaranteed COE package, which usually costs a bit more.
If there’s a discount on the Jazz, COE aside, it’s the cherry on top of an already accomplished hatchback
Ultimately, this allows the dealer to place an attractively low price tag on its model range, with the caveat that the final transacted price will need to include the cost of the COE, which is needed for every new car registered in Singapore.
With Category A COE prices already hovering around the $30k range before Circuit Breaker measures took place in April, you should expect to factor in at least that much extra on top of the sticker price.
This Kah Motor campaign also leaves potential for a sizeable saving via a COE rebate too, if the final COE price ends up lower than the sum you’re willing to put forward. Kah Motor explains that your initial deposit is fully refundable if the amount that you’ve agreed to put forward fails to secure a COE after one bid. If successful, you pay only the final COE price, and not your maximum bid amount.
The practice of listing a car without a COE isn’t new to the local landscape though, as Porsche Singapore has always listed its model range exclusive of COE prices.
However it’s the first time in recent history that we’re seeing a distributor allowing the customers to dictate their own COE price levels since.
If anything, this should reflect on the fact that it’s extremely difficult to predict the COE prices even at normal times let alone in the current climate. It might also nix the belief that dealers are all bidding at a higher COE level to drive car prices up. In the latter situation, the chief beneficiary are government coffers, and while some dealers might benefit on the loan/financing side, nothing keeps customers away like high COE prices.
Of course, you could always just ignore the whole COE thing and ask for a regular package with a discount (the ‘up to S$13,000 off’ bit).
In addition to that, Kah Motor is rolling out a series of Circuit Breaker Specials for Honda cars signed for and sold during the month of May, including complimentary servicing for three years, with an additional two years for the Honda Accord, complimentary Unlimited Mileage Warranty for the first five years of ownership, and a low-interest rate from 1.88 percent.
As expected, there will be a bunch of terms and conditions in the fine print of the sales contract. Still, the Honda Accord has a pretty sweet deal on it because if like most car owners, you keep a car for five years before moving on to another one, that comes to mean free servicing for the life of the car while in your ownership.
If it sounds enticing to you, Kah Motor is open for online bookings at the moment, and customers can also check out the cars by taking a tour through the virtual showroom here.
More details are available online at the Kah Motor website, and drivers can also plan ahead and rent a Honda post-Circuit Breaker via the online rental booking portal. Kah Motor also says the supply of parts and accessories has been unaffected by the COVID situation, and customers can still order them.
Meanwhile, here are the official prices for the Honda passenger vehicle range, without the inclusion of COE: