Premium for small-car COE rebounds by $6,000
CERTIFICATE of entitlement (COE) premium for small cars yesterday ended higher than the big-car one in a tender characterised by relatively subdued bidding despite a sales surge.
In the latest exercise, the COE for cars up to 1,600cc and 130bhp closed at $51,301 - 14 per cent higher than the price ($45,002) two weeks ago.
The COE for cars above 1,600cc or 130bhp fell by 8.8 per cent to close at $50,089 - its lowest since November 2010. It is also one of the rare times that this premium is below that for smaller cars.
The premium for the Open COE, which can be used for any vehicle type but ends up mostly for bigger cars, fell by 7.4 per cent to end at $51,000.
The commercial vehicle COE premium finished 10.6 per cent higher at $46,502.
The motorcycle premium closed at $6,512, 5.5 per cent down from its previous price, which was an all-time high of $6,889.
Motor traders said the previous drop of almost $10,000 in small-car premium had whipped up interest in the segment while a weakening stock market had dampened appetite for bigger cars.
The number of bids for the small-car COE rose by more than 40 per cent from the previous tender but the price rebounded by only 14 per cent.
Singapore Motor Traders Association vice-president Eric Chan said: "After the last drop in Cat A (small-car COE), the market was really hot for Cat A cars."
But he added that dealers had priced their cars in anticipation of a COE supply bonanza starting from next month and that could have led to a more measured rebound.
As for the big-car COE, Singapore Vehicle Traders Association president Michael Lim said a weakened stock market was partly to blame, as buyers in this segment tend to be more inclined towards investments.
"People who buy these cars are usually in business or are executives," he noted.