Bigger COE supply from next month; 18.3% monthly increase in quota for car buyers

As widely expected, there will be more certificates of entitlement (COE) up for grabs in the next three-month quota period starting August.
As widely expected, there will be more certificates of entitlement (COE) up for grabs in the next three-month quota period starting August. PHOTO: ST FILE

SINGAPORE - As widely expected, there will be more certificates of entitlement (COE) up for grabs in the next three-month quota period starting August.

The Land Transport Authority announced Monday that there will be 7,281 COEs per month for the period - 9.7 per cent more than the current quota season.

Car buyers and sellers will get the lion's share of the increase.

The number of car COEs - including Open certificates - will rise by 18.3 per cent to 6,207 per month.

The main beneficiaries however, are likely to be those going for bigger cars.

That is because the number of Open COEs - which can be used for any vehicle type but ends up mainly for bigger cars - will post the biggest increase.

The category will grow by 34 per cent to 722 certificates per month.

Motor traders expect subsequent quotas to continue expanding, up to late-2017 or so. Hence premiums should continue to slide.

The only category with fewer COEs in this quota period will be commercial vehicles.

In fact, it will see a 50 per cent supply shrinkage, as more fleet owners subscribe to the Early Turnover Scheme.

The scheme encourages businesses to replace old, pollutive vehicles with new ones at subsidised rates.

christan@sph.com.sg