COE prices hit 6-month high

Potential car buyers a showroom in Alexandra Road.
Potential car buyers a showroom in Alexandra Road. ST PHOTO: WONG KWAI CHOW

Certificate of entitlement (COE) premiums hit six-month highs yesterday, as car dealers reported an increase in business after the recent easing of vehicle loan curbs.

The Monetary Authority of Singapore's decision to increase maximum loan amounts had been widely expected to put pressure on premiums, while a longer gap between tenders also saw prices spiral upwards.

The COE price for cars of up to 1,600cc and 130bhp rose by 14.2 per cent to close at a six-month high of $53,694.

The premium for cars above 1,600cc or 130bhp climbed 13.9 per cent to finish at $56,000, also the highest in six months.

The premium for an Open COE, which can be used for any vehicle type but ends up mostly for bigger cars, rose by 10.9 per cent to close at a five-month high of $55,100.

One dealer urged car buyers taking out loans to "do their sums carefully".

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A version of this article appeared in the print edition of The Straits Times on June 09, 2016, with the headline 'COE prices hit 6-month high'. Print Edition | Subscribe