SINGAPORE — Cars with a Certificate of Entitlement (COE) at the tail-end of their 10-year period are becoming more popular, according to used car dealers.

In recent months, more cars have been de-registered and this has impacted COE prices somewhat. Nevertheless, premiums for Category A and B have been hovering between the S$40,000 and S$50,000 mark for the past two rounds of bidding exercises.

Dealers said many customers are still taking a wait-and-see approach before purchasing a new car. They said that many motorists are opting to purchase six- to nine-year-old cars to tide them over, as they hope for COE prices to fall, in anticipation of higher de-registrations.

Mr Don Tan, director of Don Motoring, said that those with only a two-year lifespan left were the most popular.

“I think (cars with two years left are) the most popular car for most consumers who are wanting to buy,” said Mr Tan. “So meanwhile, they can try to anticipate the COE and to observe if it’s the right time to move in to buy a brand new one maybe in about one to two years’ time.”

Another dealer said customers also see used cars as a “better deal”.

Said Hamilton Autohub’s director S K Rai: “This is because for the cost that we buy, and the cost that we sell, the depreciation factor has already been calculated. And financing wise, in terms of outlay, it is much lesser than new cars. So, it’s an option for consumers.”

Latest statistics on used cars published by the Land Transport Authority also show an increasing trend. January saw 9,281 used cars sold, compared to 7,003 in the same period last year.

Dealers say they are not surprised by these figures, as many customers are also holding back on big-ticket items in view of the slow economic outlook. Mr Raymond Tang, first vice-president of the Singapore Vehicle Traders Association, said buyers are also waiting to see what measures may be introduced in Budget 2016 later this month. CHANNEL NEWSASIA