Motor traders say sharp drop in COE two weeks ago sparked buying frenzy

Motor traders said the sharp drop in Certificate of Entitlement (COE) premiums for cars above 1,600cc two weeks ago, when the premium fell from $92,667 to $58,090, sparked buying interest.

The age-old rivalry between BMW and Mercedes-Benz added fuel to the frenzy, with the latter rushing to clear stock of its current E-class sedan before a new model arrives.

Certificate of Entitlement (COE) premiums for cars up to 1,600cc continued to ease at the latest tender on Wednesday, ending at a six-month low of $64,209 - down from $74,689 two weeks ago.

But all other premiums ended higher. COE premiums for cars above 1,600cc rebounded from $58,090 to $73,900, while Open COE, which can be used for any category but is mainly used for luxury cars, closed at $73,301 - up from $65,001. Commercial vehicle COE closed at $54,111, up from $53,900. Motorcycle premium inched upwards to $1,909, from $1,895.