COE prices close higher across the board
Certificate of entitlement (COE) prices closed higher across the board in the latest tender yesterday.
The COE price for cars up to 1,600cc and 130bhp finished at $40,714, up from $37,690 three weeks ago.
The premium for cars above 1,600cc or 130bhp closed at $45,012, up from $41,101.
The premium for the Open COE, which can be used for any vehicle type except motorcycles but ends up predominantly used for bigger cars, also ended higher at $45,510, from $41,503.
The commercial vehicle COE price closed at $32,889, up from $30,334.
The motorcycle premium finished at $7,670, up slightly from $7,300.
Mr Neo Nam Heng, chairman of the diversified motor group Prime, said the rise was due to many dealers offering year-end promotions, selling vehicles even at a loss to increase their sales statistics.
The three-week gap between this bid and the previous one on Nov 18, instead of the usual fortnight, also led to a greater jump, he added.
Mr Raymond Tang, managing director of Yong Lee Seng Motor, said the increase could also be due to people's expectations that the COE average monthly quota will decrease in the coming months.
The Land Transport Authority had announced in October that the quota of COEs for cars, including Open COEs, will increase by 5.8 per cent to 4,865 a month for the November to January period.
This is not expected to persist, Mr Tang said.
"They might feel that if they don't go in now, they might not even be able to get a COE next year. Car dealers tell consumers this," he added.
The COEs could also be earmarked for cleaner cars, which will receive $5,000 more in rebates from next year, up from $20,000 for the cleanest ones.
The bumper crop could also be due to people buying cars that are more pollutive now to avoid higher surcharges for them from July, he added.