The second Certificate of Entitlement (COE) tender of March 2021 saw an increase across all categories, with Category A prices settling at $44,589, the highest across all 6 bids in 2021 with a 2.43% increase, similar to the increase in the first March tender.
COE Bidding Results On 17 March 2021 (Second Tender)
(Related Story: COE Bidding: March 2021 First Tender Analysis)
Category A closed at $44,589, a $2593 increase from the previous round with 1,186 bids received.
Category B closed at $47,001, a $2000 increase from the previous round with 1,222 bids received.
Category C closed at $39,589, a $2076 increase from the previous round with 507 bids received.
Category E closed at $47,806, an $805 increase from the previous round with 430 bids received.
Like in the first March tender, Category A bids had an increase of 2.43%, which saw it surpass the previous high of Cat A prices since the beginning of 2020 and the second bid of January this year, which was $43,501. Fluctuations of Category B prices have remained relatively stagnant, and at $47,001, it is considerably higher than the previous bid, but not as dramatic as the prices of January this year.
Future COE Predictions
Given the recovering economy and the recent increases of COE prices across the board, industry experts are foreseeing a steady rise in the prices of upcoming bids. But the recent popularity of EVs may not dissuade or deter buyers from making a new car purchase.
In line with the budget 2021 speech delivered in mid-February, the incentives for purchasing an EV may significantly lower the cost of vehicle ownership for most buyers.
“Car owners can expect COE prices to be on the ride for the months ahead.” Said Gabriel Chia, Sales Executive at New Age Group Holdings Pte Ltd. “However, with the incoming influx of electric vehicles, the number of new car purchases will see a rise as people start purchasing EVs to go environmentally-friendly and wallet-friendly.”
Max Leong, Sales Executive at New Age Group Holdings Pte Ltd, shares a similar sentiment on electric vehicles. He highlighted the cost savings with the enhanced VES scheme and Electric vehicle Early Adoption Incentive (EEAI).
“Owners who register fully electric cars will receive a rebate of 45% off the Additional Registration Fees (ARF), capped at $20,000. This EEAI will lower the upfront cost of an electric car by an average of 11%, and narrow the upfront cost gap between electric and internal combustion engine (ICE) cars,” he added.
There have been a number of significant announcements in recent weeks with regards to car and road news. The new EV incentivisation schemes, the impending implementation of the new Commercial Emissions Vehicle Scheme (CEVS) on 1st April 2021, the end of diesel vehicle registrations from 2025 onwards, and the gravitation toward cleaner-energy vehicles. With these rapidly changing times, we may expect to see more price fluctuations in the near future, but we are unlikely to see major price hikes for passenger vehicle COE prices.