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COE prices for large cars fall below S$100,000 mark for first time in nearly 5 months

SINGAPORE — Certificate of Entitlement (COE) prices for large cars fell on Wednesday (Oct 5) to S$95,856, the first time in nearly five months that Category B premiums went below six figures.

COE prices for large cars fall below S$100,000 mark for first time in nearly 5 months
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SINGAPORE — Certificate of Entitlement (COE) prices for large cars fell on Wednesday (Oct 5) to S$95,856, the first time in nearly five months that Category B premiums went below six figures.

Premiums in the category — which includes cars above 1,600cc or 97kW, or fully electric cars with output over 110kW — have stayed above the S$100,000 mark since May 19, when the COE was S$95,889.

Premiums for small cars (up to 1,600cc & 97kW) or fully electric cars with output of up to 110kW also fell, going down by 4.17 per cent to S$80,501.

Motorcycle premiums went up to S$11,751, reaching a record high for the second time in a row.

For goods vehicles and buses, COE prices dipped by 1.51 per cent to S$65,991.

And in the open category, which can be used for any type of vehicles except motorcycles, premiums went down by 2.05 per cent to S$105,001.

WHY COE PRICES WENT DOWN

Car dealers and transport experts contacted by TODAY said that the current economic uncertainty and the increase in interest rates for car loans may have resulted in fewer bidders for big cars in Category B.

Motor trader Neo Nam Heng, who is adviser to the Automobile Importer & Exporter Association, said that the economic situation with its signs of inflation has made people more cautious about spending, likely resulting in not as many people bidding for a COE.

The COE is needed to own and drive a vehicle in Singapore and it is usually factored into the price of the vehicle being sold.

COE prices for all categories fell on Wednesday, except for the one for motorbikes.

This week, several banks have raised interest rates for car loans to 2.78 per cent. This is an increase of 0.5 percentage point from the 2.28 per cent interest rate reported in May.

“It is very discouraging to car buyers who (want to) apply for seven-year or eight-year loans. They think that the interest is too high,” Mr Neo said.

Agreeing, Mr Steven Lim, a full-time broker in the car industry, said that the dip in COE prices reflected consumer threshold, adding that there are probably fewer bidders for the larger and more powerful cars after the rapid increase in COE premiums for Category B in the past few months.

Assistant Professor Terence Fan, a transport researcher from the Singapore Management University, said that the COE numbers should be monitored to see if there is sustained decline in demand or if it is a one-off thing.

NUMBERS AT A GLANCE

Cat A (Cars up to 1,600cc & 97kW or fully electric cars with output of up to 110kW): S$80,501 (down from S$84,000)

Cat B (Cars above 1,600cc or 97kW or fully electric cars with output over 110kW): S$95,856 (down from S$108,051)

Cat C (Goods vehicles and buses): S$65,991 (down from S$67,001)

Cat D (Motorcycles): S$11,751 (up from S$11,589)

Cat E (Open category): S$105,001 (down from S$107,201)

Related topics

COE car vehicle COE price transport motorcycle

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