The first Certificate of Entitlement (COE) tender on 6th January 2021 saw an increase in Category C prices, and very slight changes in prices across the other categories, with Category B and E prices dropping marginally, and a slight increase in Category A prices.
(Related Story: COE Bidding Results: December Analysis (Second Tender))
Category A closed at $40,609, which is a $53 increase over the previous round with 1,280 bids received.
Category B closed at $49,001, which is a decrease of $299 over the previous round with 1,396 bids received.
Category C closed at $35,900, with an increase of $699 over the previous round, with 679 bids received.
Category E closed at $49,489, which is an $11 decrease over the previous round, with a total of 758 bids received.
Despite being the first COE tender of 2021, the current COE prices have remained quite stagnant compared to the surge in prices between the two rounds of bidding exercises in December. Even though the changes for Category A, B and C are marginal, the prices are still past the $40,000 mark. Taking into account the implementation of phase 3, we may see a further increase in prices as the economy is slowly recovering from the impact of COVID-19.
As for Category C, prices have been on the rise, hitting an all time high since bidding exercises resumed after the circuit breaker period back in 2020. This is likely due to the Commercial Vehicle Emissions Scheme (CVES) that will come into effect in April this year.
FUTURE COE PREDICTIONS
We have reached out to multiple dealers to get their opinions on the future of COE prices, and most unanimously agree that we may see a further increase in the upcoming COE tenders.
“Pertaining to this round of COE bids, prices for Category A & Category B are holding strong probably due to the rush before CNY delivery.” said Eugene Yeo, Manager of Car Company Pte Ltd. “As for Category C, it will be going strong as consumers are purchasing commercial vehicles to avoid being impacted by the Commercial Vehicle Emissions Scheme on commercial vehicles by 1st April 2021.”
Mr Eric Law, Car Purchaser of Creative Auto Leasing believes that prices will continue to rise in the coming bids.
“Now is the best time to buy a car as COE prices may continue to surge after undergoing a slight correction due to the year end post-Christmas buying sentiments.” said Mr Law.
CONCLUSION: WHAT WE CAN EXPECT FOR 2021
We are only a few days into 2021 so the future of COE prices is still relatively uncertain. While there is no way to accurately predict the fluctuation of prices in the upcoming bids, we can expect more cars being snapped up now that the world is on the mend. This is especially true for category C vehicles, which will be hit hard by the CEVS scheme come April. So if you are thinking of getting a new or used car, visit our marketplace at UCARS, where we promise you can enjoy the best deals!
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