Sales of Category A cars jump after latest COE bidding exercise

SINGAPORE — Sales of Category A cars are up 50 per cent in the past week compared to the previous two weeks, said car dealers, as Certificate of Entitlement (COE) prices for these smaller cars dipped to their lowest levels since March 2011.

Car dealers Channel NewsAsia spoke to said that 80 per cent of new car sales this week fell under Category A, while only 20 per cent were for larger Category B cars.

This is in contrast to the situation before COE prices for larger cars rose in the latest bidding exercise this week, according to Mr Henry Heng, manager at Prime Cars.

“Ever since COE prices for Cat B cars fell by S$12,000 to S$38,000, eight out of 10 car buyers have chosen to purchase the larger cars. (But) after the latest COE bidding, those who come by mostly look at smaller cars because the prices of the Cat B cars have rebounded,” he said.

Meanwhile, sales of second-hand cars rose by 10 per cent in the past week, as prices of newer second-hand cars were slashed by up to 15 per cent to attract buyers. Dealers also said that buyers of second-hand cars are likely to be waiting for COE prices to dip further.

Mr Raymond Tang, Vice-President, Singapore Vehicle Traders Association said: “Some consumers believe that COE prices will continue dipping, and hence some feel they should wait a bit more. That’s why they buy these kinds of cars that are only left with a shelf life of one to two years, then wait for the right opportunity and only buy when the prices are low. CHANNEL NEWSASIA