COE prices end mixed but remain among highest seen since 1990
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The COE for smaller, less powerful cars finished 1.8 per cent lower, while that for bigger, more powerful cars closed 0.2 per cent up to hit a new high of $121,000.
PHOTO: ST FILE
SINGAPORE - Certificate of entitlement (COE) prices ended mixed in the latest tender on Wednesday, though they still remain among the highest seen since the quota system started in 1990.
The COE premium for smaller, less powerful cars finished 1.8 per cent lower at $96,206, while that for bigger, more powerful cars closed 0.2 per cent up to hit a new high of $121,000.
The premium for the Open COE, which can be used for any vehicle type except motorcycles but ends up mostly for bigger cars, ended 1.7 per cent higher at $123,000.
The commercial vehicle COE price finished 1.6 per cent higher at $83,140, while the motorcycle premium posted the day’s biggest drop of 2.7 per cent to finish at $10,709.
Motor traders said recent adjustments to bolster COE supply
Mr Neo Nam Heng, chairman of diversified motor group Prime, said: “The supply base is still too small. And looking ahead, the next seasonal supply increase – beginning from next year – may not be as big as expected because many cars had huge tax rebates, which means their scrap rebate will be negligible.
“Owners will renew their COEs to keep these cars for another five or 10 years.”
Mr Neo added that the weak Japanese yen is also bolstering COE prices, as dealers have more margins for bidding.
“For example, the popular Toyota Alphard Hybrid had an OMV (open market value) of around $63,000 last year. Now, it’s around $50,000. Multiply that with the taxes, and the savings can be up to $40,000,” he said.
Ms Jasmmine Wong, chief executive of Inchcape Singapore and Greater China, which sells Toyota and Suzuki cars here, said the prices were “expected”.
“Every half-year, the German brands will rush to hit their sales targets. Historically, premiums in June and December always remain high,” she noted.
Meanwhile, other dealers said many had expected an across-the-board price correction in car COEs in this round, on account of people being away for the June school holidays and overall weak retail buying after the previous tender’s strong rebound in prices.
According to the Land Transport Authority, the number of bids for car COEs (including Open) fell by 10.4 per cent to 1,685.
“It doesn’t make sense,” said one dealer, referring to how prices have risen when bids had actually fallen.
He also noted: “We hear some quarters were spreading rumours that the next quota starting in November would be smaller. But signs are actually pointing to a bigger quota.”
