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.
ANALYSIS
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.
We understand that owning a car is a big financial commitment. Our marketplace is dedicated to help you get the best deals, make the right decision and save money! Browse our finest collection of quality cars at your fingertips or schedule a live video call session at the comfort of your own home on UCARS.
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