Dealers' bids don't reflect true value

I welcome Mr Richard Chan Yong Huat's letter ("Put COE bidding in hands of buyers, not dealers"; last Tuesday).

Since car dealers pass on certificate of entitlement (COE) prices to buyers, they are encouraged to bid high COE prices, just so they can secure COEs for cars in their storage.

This certainly does not reflect what actual car buyers are willing to pay.

Let us prohibit dealers from bidding so that we may allow market forces to determine the true COE value. 

Darren Ong Soon Siong

A version of this article appeared in the print edition of The Straits Times on February 02, 2016, with the headline 'Dealers' bids don't reflect true value'. Print Edition | Subscribe