COE price for small cars jumps by more than S$6,000 as premiums rise across the board

SINGAPORE — Certificate of Entitlement (COE) prices rose across all categories at the end of the latest bidding exercise on Wednesday (Aug 7).

Premiums for small cars (up to 1,600cc & 97kW) went up by 22.72 per cent, or S$6,058, to S$32,725.

Large cars (above 1,600cc or 97kW) saw premiums go up from S$39,406 in the previous bidding exercise to S$40,001.

Meanwhile, goods vehicles and buses saw COE prices go up by 13.01 per cent to S$27,800.

In the motorcycle category, premiums went up to S$4,400, compared to S$3,554 in the previous bidding exercise.

Finally, in the open category, which can be used for any type of vehicles, premiums went up by 1.58 per cent to S$40,521.

NUMBERS AT A GLANCE:

Cat A (Cars up to 1,600cc & 97kW): S$32,725 (up from S$26,667)

Cat B (Cars above 1,600cc or 97kW): S$40,001 (up from S$39,406)

Cat C (Goods vehicles and buses): S$27,800 (up from S$24,599)

Cat D (Motorcycles): S$4,400 (up from S$3,554)

Cat E (Open category): S$40,512 (up from S$39,889)

PENT UP DEMAND FOR SMALL CARS

Car dealers noted the sharp 22.7 per cent increase in COE prices for small cars, which they said was due to the big cut in quotas for such vehicles. 

The quota for small cars for August to October was reduced by 25.8 per cent to 2,112 a month, the Land Transport Authority said last month. 

The COE prices for motorcycles also rose sharply, by 23.8 per cent, as the quota for August to October was slashed by 17.7 per cent.

Thong Lee Trading sales manager Kelvin Lee said that many who wanted to buy small cars were unsuccessful in previous rounds of bidding, which led to the pent up demand this time.

“Some of the car models were also previously out of stock and a lot more units arrived in time for this round, which is why the COE price rose so much,” he added.

The managing partner of Mayfair Motoring, Mr Mike Lee, said that the longer bidding interval this round also had a role to play. Bidders had three weeks to place their bids this round, instead of the usual two weeks.