SINGAPORE - The median Open Market Value (OMV) of cars registered in Category A, or the small car category, has decreased a year after the re-categorisation of the Certificate of Entitlements (COE) scheme.
The Land Transport Authority (LTA) in a statement on Friday said there was now a greater proportion of cars with lower OMV in this category.
Before the reclassification, Category A cars only had to have an engine capacity of less than 1,600cc. But this led to complaints that some bigger luxury cars fit that criteria and bidders of those cars were pushing up COE premiums in the small car category. In February last year, cars had to be less than 130bhp in horse power in addition to being 1,600cc and below.
The LTA said that since the reclassification, the median OMV of Cat A cars has remained consistently below $20,000, compared to the median OMV of $26,147 before the change. The percentage of cars with OMV at or below $20,000 jumped from 26 per cent to 70 per cent.
LTA said the COE reclassification was implemented to ensure that Cat A continues to cater to mass-market buyers and to stem the increasing proportion of higher-end cars appearing in that category.