COE prices end mostly lower at first bidding of December

COE  prices finished mostly lower on Dec 9, 2015.
COE prices finished mostly lower on Dec 9, 2015.PHOTO: ST FILE

SINGAPORE - Certificate of entitlement (COE) prices ended mostly lower in the latest tender on Wednesday (Dec 9), as the market cooled with the year-end school holidays.

COE for cars up to 1,600cc and 130bhp slid 3.7 per cent to end at $56,989. COE for cars above 1,600cc or 130bhp dipped by 1.8 per cent to finish at $60,001.

Open COE, which can be used for any vehicle type but ends up mostly for bigger cars, fell by 3.3 per cent to close at $60,003. 

This was despite a three-week gap from the previous tender. Usually the gap is two weeks; a longer break gives car dealers more time to collect orders. More orders usually translate to more aggressive bids, and higher premiums.

Mr Ron Lim, general manager of Nissan agent Tan Chong Motors, said: “The car market is still pretty weak. Partly, it’s the school holidays – people are away, or are in no mood to buy. 

“Dealers are also less aggressive. Those who were rushing to meet sales targets had already gone all out in the last round.”

An imminent surge in COE supply may also have tempered bidding on Wednesday.

“The next COE quota (starting February) could see supply go up by as much as 50 per cent,” Mr Lim said. 

According to the Land Transport Authority, the number of cars deregistered – the main determinant of future COE supply – rose noticeably in October. Some 7,025 cars were taken off the road, 16 per cent more than in September.

Meanwhile, commercial vehicle COE climbed 4.8 per cent to end at a four-month high of $48,101. 

Mr Michael Wong, general manager of Isuzu agent Triangle Auto, said this was because of more light commercial vehicles expiring. 

“The owners have no choice but to get a new one,” Mr Wong said. Unlike cars, commercial vehicles can only be extended by 10 years.

Motorcycle premium was flat, ending merely $1 lower at $6,501.

Latest COE results:

Category Current COE premium ($) Previous COE premium ($)
A - Car (1600cc & below)  56,989 59,200
B - Car (above 1600cc)   60,001 61,103
C - Goods vehicle & bus  48,101 45,890
D - Motorcycle  6,501 6,502
E - Open  60,003 62,019

Source: Land Transport Authority