- POSTED: 08 Jan 2014 16:16
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Prices for Certificates of Entitlement (COE) ended mostly higher in the latest bidding exercise on Wednesday.
SINGAPORE: Prices for Certificates of Entitlement (COE) in the first bidding exercise of this year ended mostly higher.
There were no significant movements in all categories ahead of the re-categorisation of COEs which take effect in February.
Car dealers are touting discounts of up to S$30,000 in a final push to clear cars which are affected by the changes to COE rules, which tighten the criteria for small cars.
Stocks of such models are running low.
From February, cars up to 1,600cc must not have engine power exceeding 130bhp.
Victor Kwan, managing director at Wearnes Automotive, said: "Being so close to the actual date itself, we don't have a lot of stocks left, but last weekend, and this coming weekend, we are doing a final push to just clear up whatever last few units we have. By this week I think most of it should be gone."
In the latest COE bidding exercise, the premium for small cars closed lower at S$72,369 - down S$1,633.
Big cars registered an increase of close to 4 per cent, closing at S$78,700.
The premium for commercial vehicles went up by S$888 to hit S$48,889.
COE prices in the open category, which can be used for any vehicle type, ended at S$79,000 - S$1,499 more than the last exercise.
Premiums for motorcycles inched up by S$177 to S$1,989.
Industry players expect prices to be more volatile beginning next month.
Mr Kwan said: "In the very first bidding of February, you have the Chinese New Year period where the showrooms will be closed, at the same time you have reclassification kicking in, at the same time COE quota could be reduced."
Weiye Wang, accounts manager at AutoConsign, said: "I think very critically, we do not know what's going to happen in the next Budget. The industry has been looking very closely at what's going to happen in February. So, what happens on Budget Day will have a significant impact on the industry too at the same time."
Car dealers expect COE supply to increase this year as more cars reaching 10 years of age are scrapped or deregistered. This can happen during the second half of this year. With more COE supply, there is a chance premiums will fall.
Raymond Tang, honorary secretary at Singapore Vehicle Traders Association, said: "I think what everybody is looking at is stable COE prices. If a bit more COEs are allocated, then the COE prices will be more stable. Everybody wants stable COE prices - they don't like to see prices going up and down."
Another change facing the auto industry this year is the need for new diesel vehicles to comply with the Euro 5 emissions standard from January.