Downtrend in COE prices seen continuing

Singapore

WEDNESDAY'S Certificate of Entitlement (COE) bidding exercise is expected to continue with a general downtrend in passenger car premiums, which some dealers believe are unlikely to increase from current levels going into the second half of 2015.

Key to this sentiment is the wait-and-see attitude of prospective buyers, who are holding back on their new car purchases because they feel upcoming COE quotas can only get bigger. Also weighing on purchases is the increase in car prices with next month's tightened Carbon Emissions-based Vehicle Scheme or CEVS .