More COEs may drive car prices down

Potential buyers at the Nissan showroom in Ubi Road on May 10, 2014.
Potential buyers at the Nissan showroom in Ubi Road on May 10, 2014.PHOTO: ST FILE

There will be more certificates of entitlement (COE) in the coming months and this is expected to drive vehicle prices down further.

There will be 9,634 COEs a month, on average, from May to July. This is a 15 per cent increase from the previous three-month quota period.

Car COE numbers will rise by 14 per cent to 8,384 a month.

But the single biggest expansion will be in the commercial vehicle category, which goes up by 40.7 per cent to 456 a month.

The growth in COE supply, fuelled by the scrapping of old vehicles bought during the last supply bonanza about a decade ago, is expected to continue for another 18 months or so.

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A version of this article appeared in the print edition of The Straits Times on April 16, 2016, with the headline 'More COEs may drive car prices down'. Print Edition | Subscribe