COE prices see large increases in car categories in latest bidding exercise

In the second Certificate of Entitlement (COE) bidding exercise for September 2024, premiums went up significantly for all car categories, with the largest increase coming in Category E. 

Cat A COEs, which are used for cars with internal combustion engines (ICEs) of up to 1,600cc in capacity and have a power output of less than 130hp, as well as electric cars with a power output of up to 110kW, saw prices going up by $2,034 to end the bidding exercise at $98,524.

Cat B COEs, which are used for ICE cars that exceed 1,600cc in capacity or have more than 130hp, and electric cars with over 110kW, saw premiums go up by $3,701 to end at $110,001.

Cat C, which are for goods vehicles and buses, was the only one that saw a decrease, with its premium going down by just $1 to end the bidding exercise at $74,000.

Cat D, which are reserved for motorcycles, went up by $99 to close at $9,900.

Finally, Cat E, which is open to all vehicles except motorcycles, saw the largest increase in this round, with premiums going up by $6,203 to finish the exercise at $113,104.

Sabrina Sng, a managing director who oversees insurance and car brands Lotus and Polestar at dealership group Wearnes Automotive, said that the increases are "not surprising at all". She elaborated, "There's a three-week interval between now and the next bidding exercise, plus we have The Car Expo coming (on Oct 5 and 6), so dealers would be stocking up on COEs to register cars in the upcoming period."

Sng says that the large-scale car sales event is expected to generate strong car buying interest from the public, further exerting upward pressure on COE premiums. She adds, "Everyone in the industry is expecting COE prices to head further upwards in the next round, and I won't be surprised if Cat A crosses the $100,000 mark then."

Here's a summary of the second COE bidding exercise for September 2024:

*PQP, or Prevailing Quota Premium, is the moving average of COE prices in the last 3 months, and denotes the amount payable in order to renew a car's COE at the end of its tenure.

benjamin.chia@asiaone.com

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