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Car COE premiums higher after easing of loan curbs

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THE first bidding exercise for certificates of entitlement (COEs) after car loan curbs were eased yielded higher premiums for passenger cars.

THE first bidding exercise for certificates of entitlement (COEs) after car loan curbs were eased yielded higher premiums for passenger cars.

These premiums on Wednesday saw increments of more than S$5,000 in the car categories, nudging them past the S$50,000 mark, last seen in January this year.

Category A - for cars below 1,600 cc or 130 hp - was up by S$6,674 to S$53,694.

For cars above 1,600 cc and 130 hp, Cat B premiums were S$6,844 higher at S$56,000.

Cat E - the open category which currently tracks Cat B - climbed S$5,400 to S$55,100.

COEs for goods vehicles, which fall into Cat C, saw premiums rise by S$3,432 to reach S$46,434.

Only Cat D - for motorcycles - saw lower premiums, but this was just S$1 lower at S$6,302.

The Monetary Authority of Singapore (MAS) relaxed the more than three-year-old vehicle financing restrictions for car buyers on May 27.

Now, buyers can borrow up to 70 per cent of the car price and pay it back over up to seven years instead of five years.

The adjustments follow sustained moderation in COE premiums.

Analyse historical COE data with the Business Times interactive tool