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COE prices for small cars down to $25,000 in latest round of bidding
[SINGAPORE] Certificate of entitlement (COE) premiums closed mostly lower on Wednesday (Nov 21), in November's second round of bidding.
The largest drop was for cars up to 1,600cc and 130bhp, with COE prices falling 11.3 per cent from $28,199 to $25,000. The price for the category last hit $25,000 - its lowest since 2010 - in August.
The next largest fall was for commercial vehicles, where COE prices dropped 6.8 per cent, from $29,501 to $27,509.
The premium for COEs for cars above 1,600cc or 130bhp closed at $31,101, down from $32,302 previously.
In the open category, which can be used for any vehicle type except motorcycles, but is mostly used for bigger cars, the price closed at $30,959. This is a 3.3 per cent drop from $32,000 during the last round of bidding .
Only COE prices for motorcycles saw an uptick, closing higher at $2,989. This is up from $2,509 previously, reversing the downward trend seen in recent months.
Observers point to a number of factors behind the downward trend for car COEs. "The economic outlook is poor and interest rates are going up," said Mr Neo Nam Heng, chairman of diversified motor group Prime, adding these have dampened demand for cars.
The higher quota of COEs for smaller cars compared to the previous quarter has also helped drive the price for the category down, said Mr Nicholas Wong, general manager of Honda agent Kah Motor.
Also playing an "important role" in dampening demand is the new vehicular emissions scheme (VES) introduced in July, said Mr Neo. The VES hands out tax rebates or surcharges based on a vehicle's emissions. The Straits Times reported in September that only about 15 per cent of new cars registered qualified for rebates under the new scheme.
"Popular cars that got a $10,000 rebate under the previous scheme now have a $10,000 surcharge," said Mr Neo.
THE STRAITS TIMES