COE prices end mixed but premiums remain high

COE prices finished mixed in the round of bidding that ended on Nov 22, 2017.
COE prices finished mixed in the round of bidding that ended on Nov 22, 2017.PHOTO: ST FILE

SINGAPORE - Certificate of entitlement (COE) prices finished mixed in the latest tender on Wednesday (Nov 22), although premiums remained at among their highest in recent years.

COE prices for cars up to 1,600cc and 130bhp ended 0.7 per cent lower at $46,791. The premium for cars above 1,600cc or 130bhp closed 0.04 per cent lower at $57,390.

The Open COE, which can be used for any vehicle type except motorcycles, finished at $57,501, or 0.9 per cent higher than previously.

The COE premium for commercial vehicles closed 0.6 per cent lower at $57,701. Motorcycle premiums shot up by 8.9 per cent to hit a four-month high of $5,992.

Motor firms, especially those representing Continental brands, have been fanning demand with a “buy now, not later” message, telling consumers that prices will rise when the new Vehicle Emissions Scheme (VES) kicks in in January.

Most cars will either lose their current tax rebates or even see tax surcharges with the new scheme. But motor traders are divided on whether that will lead to higher car prices because some cars which are currently in the neutral band (qualifying for neither rebate nor surcharge) will remain in the same band come January.

Mr Ron Lim, general manager of Nissan agent Tan Chong Motor, said: “It’s very uncertain at this juncture... the last thing we want is for everybody to rush to register cars by year end, and then end up with no inventory for January.”

Mr Lim reckons dealers will cut back on models which will be adversely affected by the VES. And they will introduce or ramp up on those which will not be. 

Besides the VES though, Mr Lim said premiums might inch upwards over the long term.

 “We know for certain the quota size will continue to shrink. If the economy picks up, that will give support to premiums.”

Latest COE results:

Category Current COE premium ($) Previous COE premium ($)
A - Car (1600cc & below) 46,791 47,112
B - Car (above 1600cc)  57,390 57,414
C - Goods vehicle & bus 57,701 58,036
D - Motorcycle 5,992 5,502
E - Open 57,501 57,000

Source: Land Transport Authority