The latest Certificate of Entitlement (COE) tender on Wednesday (9 Sept) saw prices rising significantly across all categories. This is the 5th round of COE bids since bidding exercises resumed earlier in July, and it seems prices may continue to rise in the upcoming bids.
(Related Story: COE Bidding Results: August 2020 Analysis (Second Tender))
Category A closed at $37,766, which is a $2,056 increase over the previous round with 1,737 bids received.
Category B closed at $41,510, with an increase of $2,708 over the previous round with 1,715 bids received.
Category C closed at $26,644, with an increase of $1,638 over the previous round, with 525 bids received.
Category E closed at $40,790, which is $2,680 higher than the previous round, with a total of 672 bids received.
As with the trend since bidding exercises resumed, prices for all categories have consistently risen. With prices for category A, B, C and E hitting an all time high in 2020 despite the lower number of bids received. The number of available quotas have also dipped slightly, which may be another cause of the huge price uptake.
FUTURE COE PREDICTIONS
“While the overall economic situation remains uncertain, consumer demand for cars seems to have defied gravity. There are several theories that supports this statement: With pent-up demand and some of the realities of COVID-19 putting most Singaporeans in a purchasing mood, car sales may be poised for a significant rebound. In addition, there are fewer quotas available in the coming months and reduced options for people to spend their money on since traveling is still out of the question.” explained Hong Chun Mun, Co-founder of UCARS.
(Related Story: Buying A Car: What Influences A Buyer’s Decision?)
Much like how the past is hardly representative of the future, Mr Hong added that it is anyone’s guess on how the subsequent COE will move in the second tender exercise for the month of September.
“My guess is that the demand for larger engine capacity cars (usually refers to luxury cars) will hold steady, and that demand for small engine capacity cars (mass market models) will abate. Therefore, my money is on Cat A moving downwards slightly and Cat B holding steady.” he said.
“Truth is, the bidding results were mind-boggling as I didn’t expect the prices to increase that dramatically, what I predicted initially were entirely wrong.” added Jason Wong, Sales Consultant for Drivezz.
CONCLUSION: HOW HIGH ARE THE STAKES?
The chance to buy a car cheaply is the result of tough economic times that could persist. Who knows how long and deep the upcoming recession will be? Anyone who feels that job security is in question or that a pay cut is coming should think carefully about making a big financial commitment of any kind. On the flip side, making a large purchase is also one way to play a part in keeping the economy going.
Uncertain times may loom ahead, but it can also create the chance to snag a bargain. Purchase a car at the comfort of your own home on UCARS – We bring the best deals to you!