COE premiums end lower ahead of Chinese New Year

Certificates of Entitlement (COE) for cars and commercial vehicles eased all round at the latest tender on Wednesday despite an overall reduced supply of COEs.

COE for cars up to 1,600cc closed at $87,109, down from $91,010 two weeks ago. COE for cars above 1,600cc finished at $92,901, down from $95,501.

Open COE, which can be used for any vehicle type but ends up mainly for bigger cars, ended at $94,890, down from $97,889. Commercial vehicle premium fell from $57,051 to $54,989.

Motorbike premiums were the only one that bucked the trend, finishing $1 higher at $1,782.

Motor industry watchers attribute the dip to buyers recoiling from the high prices, as well as dealers having completed most of the Chinese New Year promotions. Those who secured COEs on Wednesday are unlikely to be able to register their vehicles in time for Chinese New Year this weekend.

Observers added however, that this might be the lull before the storm.

With far fewer COEs available for car sellers and buyers, premiums for passenger vehicles will head north once again after the holidays.

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