COE premiums hit new highs as old car extensions put brakes on new supply

LARGE numbers of Singapore car owners over the past five years have chosen to keep their decade-old vehicles instead of scrapping them, delaying the availability of new certificates of ownership (COEs) and supporting high premiums, according to an analysis by The Business Times.

On Wednesday (Nov 9), the first round of bidding for November 2022 closed with premiums up in all vehicle categories and record highs for larger cars and motorcycles.

For cars with engines above 1,600 cc or 130 bhp and electric vehicles (EVs) above 110 kW of power, the COE premium increased S$5,388, or 4.9 per cent, to S$115,388, an all-time high. The open category COEs – which can be used for any vehicle except motorcyles but is mostly used for cars – rose S$8,574 or 7.9 per cent to S$116,577, also a record.