Most COE prices rise with smaller quota, longer bidding period
With the exception of motorcycles, certificates of entitlement (COE) for other vehicles ended higher as a smaller quota and a longer bidding period amplified upward pressure.
At the end of the latest tender at 4pm yesterday, COE for cars up to 1,600cc and 130bhp finished at $37,766 - 5.8 per cent higher than the previous price three weeks ago.
COE for cars above 1,600cc or 130bhp closed 7 per cent higher at $41,510.
Open COE, which can be used for any vehicle type except motorcycles but which end up mostly for bigger cars, also ended 7 per cent higher at $40,790.
This represents the third consecutive round of increases that sent big car premiums across the $40,000 mark for the first time since November last year. The premium for smaller cars is now at its highest since May 2018.
Despite widespread news of businesses reeling from the coronavirus outbreak, commercial vehicle COE price finished 6.6 per cent higher at $26,644 - its highest level since August last month.
Motorcycle premium closed 0.4 per cent lower at $7,399.
There was a three-week gap between the previous tender and the latest one, instead of the usual two weeks. This gave motor dealers more time to collect bookings.
Industry players point to aggressive promotions by BMW agent Performance Motors as another factor for the premium rises.
Other motor traders said aggressive financing schemes are also fuelling the hike in COE prices - now at 25 per cent to 35 per cent higher than they were before the circuit breaker.
Inflated invoices, zero downpayment and separate loans to overcome the 70 per cent cap on borrowings are some of the schemes enticing buyers to pay higher prices.- THE STRAITS TIMES