The Certificate of Entitlement (COE) tender on 7th October 2020 saw prices dropping all across the board for all vehicle categories except Category C, which saw a sharp increase in prices.
(Related Story: COE Bidding Results: September Analysis (Second Tender))
Category A closed at $36,534, which is a $1,970 decrease over the previous round with 1,272 bids received.
Category B closed at $40,690, which is a decrease of $299 over the previous round with 1218 bids received.
Category C closed at $33,089, with an increase of $4,500 over the previous round, with 587 bids received.
Category E closed at $40,301, which is a $700 decrease over the previous round, with a total of 688 bids received.
For the first time since bidding exercises resumed, prices for Category A B and E have dropped. But Category C prices have risen dramatically to $33,089, which is $4,500 more than the previous round of bidding, despite the slightly lower number of bids received. It is also the highest Category C price in the last 12 months.
Meanwhile, prices for Category B have been declining since the first round of September bids. Open Category (CAT E) prices dipped marginally but at $40,301, it is still one of the highest prices in 2020.
FUTURE COE PREDICTIONS
As per our previous COE bidding predictions, the prices for Category C vehicles have indeed increased. But with the slightly lowered prices of Category A and B, some dealers are uncertain about the future of Category C prices in upcoming bids.
“During the Circuit Breaker period, the suspension of COE bidding exercises resulted in an accumulation of 19,490 unused Category C quotas. These quotas were to be released gradually over 12 months starting from July.
However in the last two months, my fellow dealers and I noticed a three month trend happening, with a total of 6,494 quotas being released, a third of these accumulated quotas.
My take is, the COE prices for Category C will continue to increase, and we will not see a huge decrease in prices in the following months.” Said Ong Kheng Kwang, Director of Bell Auto.
However, some dealers remain optimistic about the outcome of Category A and B prices.
“I foresee that Category A and B’s COE prices will continue to drop a little, due to the increase in COE quotas available.” Added Alex Ang, Manager at Hua Yang Credit Pte Ltd.
CONCLUSION: HOW MUCH HIGHER WILL CAT C PRICES GO?
With the new Euro 6 emission regulations, we may see a further increase in Category C prices. Despite the uncertainty of COE prices, Category A, B and E prices seem to be relatively holding steady, so buyers may want to take this chance to snag a good deal before prices potentially rise even further. With UCARS, you can always browse our listings from the comfort of home.
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