The Certificate of Entitlement (COE) tender on 23rd September 2020 saw prices rising all across the board for all vehicle categories except Category B.
(Related Story: COE Bidding Results: September Analysis (First Tender))
Category A closed at $ 38,504, which is a $738 increase over the previous round with 1,540 bids received.
Category B closed at $40,989, which is a decrease of $521 over the previous round with 1,497 bids received.
Category C closed at $28,589, with an increase of $1,945 over the previous round, with 591 bids received.
Category E closed at $41,001, which is $211 higher than the previous round, with a total of 671 bids received.
Across the three bidding exercises prior to this latest bid, the COE prices have increased quite substantially. However the latest round of bidding saw only a slight increase in Category A and Category E bids. However, Category C prices have risen by 7% much to the surprise of some automotive industry analysts and experts alike. Traders speculated that the marginal increase in Category E prices was due to a lowered number of backlogs. Additionally, the number of bids received for Categories A and B have reduced as well, while Cat E bids have been rather stagnant.
FUTURE COE PREDICTIONS
“The COE was rather unexpected as there wasn’t much of a difference from the previous bidding exercise. As the previous bidding exercise hit the highest amount for the year, and with the zero quota increase till the end of December, I think it’ll increase even more and reach its peak soon.” said Khoo Yi Liang, Manager of Jia Yi Cars.
“Category A’s increase is primarily due to orders of lower CC luxury cars as of late, so I foresee that Cat A prices will hover around this current price point. Backlog for cars in Category B have mostly been cleared so the price drop is reasonable. But the increase in Category C prices are largely due to the Euro 6 emission regulations, so dealers have to bid aggressively to clear their stocks before the regulations are implemented. I predict prices for Cat C will increase further, and maybe cross the $30,000 mark. And I expect prices for Category E to drop a little in the next tender. Overall, I expect Category A, B and E prices to drop, and for Category C prices to increase further.” said Steve Pang, Founder of Pang’s Motor Trading.
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