Increased COE quota not expected to affect used car sales
SINGAPORE — The increase in the Certificate of Entitlement (COE) quota for cars is unlikely to affect sales of used cars, as the price difference between new and used cars is still substantial, said motor traders.
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SINGAPORE — The increase in the Certificate of Entitlement (COE) quota for cars is unlikely to affect sales of used cars, as the price difference between new and used cars is still substantial, said motor traders.
Mr Raymond Tang, honorary secretary of Singapore Vehicle Traders Association, said: “If it is a five-year-old car, it costs about 30 to 40 per cent of a new car. So the impact on the used car market will not be that great.”
Dealers said that they do not expect the prices of new cars to drop by more than 5 per cent as a result of the increase in COE supply. Therefore, this is unlikely to affect the used car market.
The Land Transport Authority raised the COE quota for cars during the May to July period by 42 per cent on Friday. CHANNEL NEWSASIA
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