COE premiums fall in all categories except motorcycles
TODAY file photo
SINGAPORE – Premiums for Certificates of Entitlement (COE) fell in all categories except for motorcycles in today’s bidding exercise — the first after the revised Carbon Emissions-Based Vehicle Scheme (CEVS) kicked in this month.
Big cars in Category B (above 1,600cc or 97kW) took the biggest hit with premiums falling 8.40 per cent from S$71,509 to close at S$65,501.
COE prices for the Open Category — which can be used for any category, but are typically used for big cars — saw the next largest decline, closing 7.38 per cent lower from the previous exercise at S$69,001.
Premiums for small cars in Category A (up to 1,600cc and 97kW) closed at S$58,700, down by 3.77 per cent. Commercial vehicles saw a marginal decrease from S$50,502 to S$50,001.
Motorcycle premiums, on the other hand, climbed to S$6,508, an increase of 1.67 per cent.
Traders had expected COE prices to fall as many consumers had rushed to buy cars before the higher penalties came into effect on July 1 under the revised CEVS scheme, which is aimed at encouraging the purchase of more environmentally friendly vehicles.
With the revision, greener cars are offered more rebates, while surcharges will be increased for vehicles with higher carbon emissions, which are typically larger cars.
Mr Raymond Tang, first vice-president of the Singapore Vehicle Traders Association, said consumers were probably holding back in this round to see how the revised CEVS would affect COE prices.
RTMT Motor director Ricky Tay attributed the substantial fall in Category B premiums to softer demand for luxury cars that would face higher surcharges. Under the revised CEVS, car models such as the Toyota Estima, which previously did not have a surcharge, will now have a S$10,000 surcharge. On the other hand, smaller cars will see their rebates drop from S$15,000 to S$10,000, for example.
Going forward, COE prices are expected to soften as COE supply increases with more cars deregistering in the next months. “For Cat B, it’s not likely to fall below S$60,000 and for Cat A, it will hover around S$50,000,” said CarTimes’ managing director Eddie Loo.
However, Mr Tang said price levels would depend on consumers’ reaction to the latest results. “If consumers rush in thinking COE will drop further and if everyone rushes in at one shot, COE will either be maintained at this price or go up by a few thousand dollars. Even if it drops, I don’t think it will be very drastic,” he added.
