COE premiums for cars rebound as latest bidding exercise ends mixed
Yesterday's Certificate of Entitlement (COE) tender ended mixed as premiums for both smaller and larger cars rebounded, following steep declines two weeks ago.
Premiums for the open category fell to their lowest since January last year. The premium for Category A cars up to 1,600cc and 130bhp closed at $32,999, up from $30,010, and Category B premiums for cars above 1,600cc or 130bhp ended at $32,889, up from $30,890.
Other COE categories closed with lower prices.
Open category COEs, which can be used for any vehicle type except motorcycles but ends up mostly for bigger cars, fell for the third straight tender, closing at $33,301.
This is down from the previous $34,900.
The commercial vehicle COE price dipped slightly from $25,013 to $25,001, while the motorcycle COE price also fell from $4,401 to $4,309.
Yong Lee Seng Motor managing director Raymond Tang said the rebound in Category A and B premiums could be due to the ongoing coronavirus outbreak as people might feel safer moving around in their own cars.
The two categories saw substantial falls of $5,000 and $6,815 respectively at the end of the Feb 5 tender, and Mr Tang said it was natural for buyers to take the opportunity to enter the market when prices are low.
When COE premiums are down, motor firms also push out promotions and packages to attract customers, he added. - KOK YUFENG