Tag Archives: COE

Car COE prices hit 14-year high

CERTIFICATES of entitlement prices continued to trek northwards in the latest tender, the first after last Friday’s announcement of quota numbers for the August-January period.
COE for cars up to 1,600cc and taxis inched up by 0.02 per cent to end at $56,002. Those for cars above 1,600cc ended 5.8 per cent higher at $72,501.
Both premiums are now at their highest in 14 years.
Open category COE, which can be used for any vehicle type but ends up mainly for cars, chalked the biggest rise yesterday. It rose by 8.3 per cent to finish at a six-month high of $74,490.
Commercial vehicle COE was 5.9 per cent higher at $34,502, while the motorcycle premium slipped by 14.7 per cent to close at $2,012.
Motor traders said the latest results reflected changes to the COE supply. The two premiums which rose the most yesterday – those for cars above 1,600cc and commercial vehicles – will also have the biggest quota reductions in the next six months.
And even though cars up to 1,600cc will actually have more certificates available, dealers said contractions in the other categories will drive companies to focus more on sales of their smaller models now. This is especially so for premium brands such as Mercedes-Benz, Volvo and Audi, which now have models below 1,600cc. BMW is expected to join the fray soon.
Premier Taxis contributed to yesterday’s price rise. It secured 20 COEs at $56,002 apiece, among the costliest certificates paid for by a taxi company.
Industry players said COEs are unlikely to soften any time soon.
‘Premiums can only go up,’ said Mr Alvyn Ang, director of operations of multi-brand agent Cycle Carriage.
Mr Ron Lim, general manager at Nissan agent Tan Chong, said: ‘Indications are that they will continue to point upwards.’
He added that the trade’s biggest worry now is whether the Government will lower the 1.5 per cent annual allowable growth rate in Singapore’s vehicle population – a determinant of COE supply.
‘The 1.5 per cent now accounts for 30 to 40 per cent of COE supply in each category. If it is brought down to zero, all hell will break loose,’ he said.

CHRISTOPHER TAN (The Straits Times)

COE supply till January remains flat

THOSE shopping for a small car or a motorcycle in the next six months can breathe a bit easier – certificate of entitlement (COE) supplies for the two vehicle categories are bigger for the August-January period.

But those in the market for bigger cars or commercial vehicles should brace themselves for higher prices on the back of an even tighter COE supply.

Car buyers on the whole, however, will see a 2.5 per cent dip in the quota, from 2,526 certificates a month to 2,463.

The number includes Open COEs, used predominantly for bigger cars.

Overall, COE supply for the next six months – announced by the Land Transport Authority yesterday – remains flat at 22,324, from 22,368 for February-July, as the slide in supply for bigger cars and commercial vehicles is offset by bigger quotas elsewhere.

COEs – meant to limit car ownership and hence the number of vehicles on the road – are put up for bidding twice a month.

Because of a shrinking supply, prices have risen to near-record levels.

Premium for cars up to 1,600cc is $55,989 now and that for cars above 1,600cc is $68,501 – more than four times their respective levels just three years ago.

Motor traders are not surprised by the new COE quotas.

‘We have never been bullish about supply in the next half,’ said Mr Say Kwee Neng, managing director of BMW agent Performance Motors.

‘This means competition among the big boys will intensify on all fronts.’

Asked where COE premiums are likely to head in the second half, he said much depends on how the economy performs.

But he expects premiums for Category B (cars above 1,600cc) to breach $70,000 ‘if demand for cars holds’.
Mr Vincent Ng, product manager at Honda agent Kah Motor, said Category B premiums can head only ‘northwards’.

Noting that ‘$70,000 is a done deal’, he added: ‘The question is whether it will go higher.’

Others reckon the upward pressure on bigger- car premiums could spill over to those for Category A (up to 1,600cc).

Mr Philip Lu, general manager of Mazda Singapore, said: ‘What could possibly happen is that the premium brands will now try to sell more Category A cars to make up for the sizeable cut in the Category B quota.
‘I see higher premiums across all the car categories.’

The outlook ahead remains bleak.

Kah Motor’s Mr Ng said the COE quota is likely to shrink even further, citing a slowdown in the number of cars taken off the road – a major determinant of COE supply.

‘Next year’s supply also depends very much on how the Government adjusts the 1.5 per cent growth rate,’ he added, referring to the vehicle- population cap – the other determinant of COE supply – that is under review now.

The rate was halved from 3 per cent two years ago as the Government sought to put a brake on Singapore’s car population.

It had grown by more than 50 per cent to 595,185 from 2000 to 2010.

Traders are keeping their fingers crossed that the allowable growth rate will not be trimmed further.
They point out that in a tight supply situation, the growth rate component is a sizeable influence on the number of COEs available.

The LTA said a new growth rate will be announced ‘once the review has been completed’.

As it is, car sales look likely to dip below 30,000 units this year – a record low. It was 42,000 last year and close to 69,000 in 2009.

In the five years prior to that, the annual average exceeded 105,000.

COE prices fall across the board

Channel NewsAsia

COE prices for vehicles fell sharply across the board in the latest bidding exercise.

The Certificate of Entitlement (COE) for big cars (over 1,600cc) saw the biggest fall. It tumbled S$6,811 to S$7,589, its lowest level since February 2007.

Open Category COEs, which are used mainly for cars, dived S$3,057 to S$12,001.

For small cars of 1,600cc and below, the COE price fell S$2,812 to S$10,989.

Meanwhile, the premium for commercial vehicles dropped S$4,396 to S$11,503.

For motorcycles, the new COE price is S$1,609 – down S$280 from the previous tender exercise.


Dealers not expecting rush of owners to give up cars for cash

Dominique Loh
Channel NewsAsia

SINGAPORE: As of Monday afternoon, Singapore’s Land Transport Authority (LTA) has received some 960 applications to get cash rebates from their Certificates of Entitlement (COE) and the Preferential Additional Registration Fee (PARF).

But car dealers have said that they are not expecting a rush of owners to give up their cars for cash.

Jackson Lee, managing director of Jia Leong Trading, said: “Some of them might give up because of petrol… inflation… some of them want to be more economical (and) give up the car, but I think (the number is small).”

“For the first kind of people, whose vehicle is fully paid (up), this would serve as an advantage to them because they can exchange their PARF paper for full cash with LTA,” said Jerry Ong, Manager of Auto Inn.

“But for people with outstanding loans, it won’t make much of a difference because dealers like us, we’ve got to come up with the money to fully settle their cars for them.”

In Singapore, a car’s PARF value is the amount credited to motorists who scrap their cars before its 10th year.

A COE is the pre-requisite before anyone can buy a car, awarded through a bidding system.

As of Monday, car owners have the option to exchange their COE and PARF rebates for cash.

The move, announced in March, is aimed at reducing the car population and have Singaporeans turn to public transport.

Dealers have said it is still too early to say what car owners will do, as opinions differ among individuals.

Phoebe Lim, a car owner, said: “I feel very handicapped without a car, (therefore) whether with or without the rebate, I will still drive. Since I got my licence five years back I’ve never taken public transport, so no (I wouldn’t exchange my car for cash).”

“If the public transport is good enough, yes I think I would,” said another car owner, Andrew Ong. “I balance the two together, I value the cash rebate, I can have a saving, I can have money in my pocket, so why not?”

But whether more people will give up their cars for cash in the days ahead remains to be seen.

– CNA/yb


COE prices for all categories fall in latest bidding exercise

Channel NewsAsia

COE prices for all categories of vehicles fell in the latest 3-day bidding exercise which ended on Wednesday.

The biggest drop was seen in the COE price for bigger cars of more than 1,600cc – down S$1,266 to S$14,235.

The COE premium for cars 1,600cc and below fell S$584 to S$14,101, while those in the Open Category – where the certificates are usually used to buy cars – went down by S$803 to S$14,858.

In the Goods Vehicles and Bus Category, the COE price fell S$300 to S$12,659.

The motorcycle COE was down S$62 to S$1,489. – CNA /ls