Car COE prices drop despite more bids
CERTIFICATE of entitlement (COE) prices for cars slid, while premiums for motorcycles and trucks inched up in the latest tender yesterday.
COEs for cars up to 1,600cc and 130bhp ended 3.8 per cent lower at $63,190, compared with the previous bidding exercise two weeks ago.
COEs for cars above 1,600cc or 130bhp finished 1.2 per cent lower at $67,304.
COEs for the Open Category, which can be used for any vehicle type but ends up being used mainly for cars, remained relatively flat at $67,334.
Commercial vehicle COEs rose by 5.2 per cent to close at $43,001, while motorcycle COEs crept up 2.1 per cent to $4,089.
The Land Transport Authority (LTA) received 1,847 bids for the two car categories, 9 per cent more than in the previous tender.
Singapore Vehicle Traders Association secretary Raymond Tang said the fact that COE premiums for cars remained stable despite more bids showed most of them were for an order backlog.
If fresh orders had been aplenty, premiums would have risen in the latest tender and not fallen, he said.
Most dealers raised prices after the last exercise, which saw COE premiums rise sharply, he added. "I believe they (premiums) will stay at around $60,000-plus in the coming months," he said.
Industry players also noted that several new car models were awaiting approval by the LTA before they could be put on sale.
The approval process is now taking two to three months - up from two to three weeks previously. Some cars have been with the LTA for more than five months now.
This, dealers said, may have also contributed to more subdued bidding for the certificates.
Mr Tang said his association has written three letters to the LTA on the matter, but has yet to receive a response.
"Consumers are chasing us for their cars," he said.