CAT A COE premiums expected to increase only slightly
21 May 2014|4,376 views
Motor distributors may have enjoyed strong orders over the past two weeks but any increase in Certificate of Entitlement (COE) premiums today will likely be tempered by the relatively low list prices of the cars booked, reported The Business Times.
Two weeks ago, the premiums for passenger car COEs slumped significantly with an increase in supply. As a result, crowds immediately converged on showrooms, especially those of popular Cat A brands such as Toyota, Mazda, Volkswagen and Nissan.
With weaker demand for Cat B cars, some expect a marginal increase in premium. But for Cat A, others expect it to rise by $3,000 to $5,000 by the close of today's COE bidding exercise.
"It can't be more because although there were strong orders, they were collected at low prices," said the sales manager of a popular Cat A brand. "With smaller margins, this means you can't bid high for a COE. So it is unlikely Cat A will increase by $10,000," he added.
Others expect a smaller increase in the Cat A premium. The sales director of a rival dealership said he is looking at "$2,000 to $3,000".
"Although the showrooms were crowded, not everyone was buying even though they were going on test drives. They believe COE premiums will fall further," he said.
Motor distributors may have enjoyed strong orders over the past two weeks but any increase in Certificate of Entitlement (COE) premiums today will likely be tempered by the relatively low list prices of the cars booked, reported The Business Times.
Two weeks ago, the premiums for passenger car COEs slumped significantly with an increase in supply. As a result, crowds immediately converged on showrooms, especially those of popular Cat A brands such as Toyota, Mazda, Volkswagen and Nissan.
With weaker demand for Cat B cars, some expect a marginal increase in premium. But for Cat A, others expect it to rise by $3,000 to $5,000 by the close of today's COE bidding exercise.
"It can't be more because although there were strong orders, they were collected at low prices," said the sales manager of a popular Cat A brand. "With smaller margins, this means you can't bid high for a COE. So it is unlikely Cat A will increase by $10,000," he added.
Others expect a smaller increase in the Cat A premium. The sales director of a rival dealership said he is looking at "$2,000 to $3,000".
"Although the showrooms were crowded, not everyone was buying even though they were going on test drives. They believe COE premiums will fall further," he said.
Latest COE Prices
February 2025 | 1st BIDDING
NEXT TENDER: 19 Feb 2025
CAT A$85,000
CAT B$111,104
CAT C$62,506
CAT E$110,000
View Full Results Thank You For Your Subscription.