Cat A COE falls to five-year low while Cat B price soars

In the second COE bidding exercise in February, premiums for Cat A COEs fell, while Cat B and E prices went up. 

Premiums for Cat A, for cars up to 1,600cc in engine capacity and with an output of no more than 130bhp, went down by $3,651 (7.8 percent) to end the bidding tender at $43,000. 

Premiums for Cat B, larger cars with more than 130bhp or engine displacement larger than 1,600cc, increased by $8,360 (22 percent) and ended at $46,970. 

In Cat E, the open category, prices went up $1,008 (2.3 percent), with premiums closing at $45,009.

Evidently, many buyers were drawn to car showrooms after the extreme drop in Cat B prices in the previous bidding exercise. This is shown by the drastic rise in the number of bids received, over 1,200 more compared to the previous bidding exercise. With the increased demand for Cat B cars, the number of bids received for Cat A dropped ever so slightly. With COE prices reaching close parity, it will be interesting to see how this will affect car buyers in the coming weeks.