COE premiums fall across the board
CERTIFICATE of entitlement (COE) prices for bigger cars fell for the fifth consecutive tender to close at a 13-month low in the latest exercise which saw lower premiums across the board.
By the time bidding ended at 4pm yesterday, COEs for cars up to 1,600cc and 130bhp ended at $61,899, or 2 per cent lower than its last price two weeks ago.
COEs for cars above 1,600 or 130bhp fell by 2.4 per cent to close at $65,700. The last time it was lower than this was in May last year.
Open COEs, which can be used for any vehicle type but end up being used mainly for bigger cars, finished 3 per cent lower at $65,301.
On average, car COEs have fallen by more than 20 per cent since April.
Nicholas Wong, general manager of Honda dealer Kah Motor, said: "The market has slowed down quite a bit. People are expecting prices to drop further, so they're staying on the sidelines."
However, prices are unlikely to dip next month. This is because motor traders expect brisk sales at the Car-nival event, and also because the next tender is three weeks away.
A three-week gap - as opposed to the usual two-week interval - allows dealers more time to collect orders. More orders usually leads to more bids and higher prices.
Elsewhere, commercial vehicle COE fell by 2.3 per cent to close at $42,001, while the motorbike premium ended 4.9 per cent lower at $3,890.
It was the first time the motorbike COE fell below the $4,000-level in seven tenders.
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