Smaller quotas send COE prices higher in almost all categories
Certificates of entitlement (COE) for cars and commercial vehicles ended higher at the latest tender yesterday, while the premium for motorcycles tumbled.
The latest results came on the back of a smaller quota for all categories of COEs except motorbikes for the August-October period.
COE for cars up to 1,600cc and 130bhp ended 2.8 per cent higher at $44,002. COE for cars above 1,600cc or 130bhp finished 0.4 per cent higher at $50,001.
Open COE, which can be used for any vehicle type but ends up mostly for bigger cars, also crept up by 0.4 per cent to close at $50,101. All three categories have been sliding almost continually since April.
Commercial vehicle COE rose by 6.5 per cent to end at a three-month high of $42,809.
The motorcycle premium fell by 2.5 per cent to close at $5,851.
Industry players said price adjustments following sustained COE falls had drawn buyers back to showrooms, leading to more demand.
Mr Neo Nam Heng, chairman of diversified motor group Prime, said: "This a very normal adjustment. COE prices have fallen by almost 20 per cent in the last few rounds. This has attracted some back to showrooms."
Mr Neo, however, expects COE prices to slide once the new Vehicular Emissions Scheme kicks in in January.
The scheme is expected to add $10,000-$20,000 to the cost of many cars. As dealers will have to absorb some of this hike in order to remain competitive, they will have less bidding power for COEs.
Mr Nicholas Wong, general manager of Honda agent Kah Motor, said yesterday's outcome was "not unexpected".
"COE supply for the next three months will be cut. This has spurred people to get a COE sooner rather than later.
"Dealers are also anxious."