Certificate of Entitlement (COE) prices ended higher all round at the latest tender yesterday, fueled by strong replacement demand and possibly fanned by fears that COE numbers will be crimped in future, reported The Straits Times.
The COE price for cars up to 1,600cc and 130bhp ended at $64,700, 5.4 percent higher than at the last exercise two weeks ago. The premium for cars above 1,600cc or 130bhp climbed 4.7 percent to finish at $71,889. The price for the Open COE, which can be used for any vehicle type but ends up mainly for bigger cars, was 2.3 percent higher at $72,100.
Motor companies said buying has been 'very strong' in the last two weeks, prompting some leading dealerships to raise prices twice in the last two weeks in response to the runaway demand.
Toyota distributor Borneo Motors, for instance, increased prices on 5th of March , the day after the previous tender. It then raised prices on 12th of March, a day after the Government said it was likely to adopt a 'zero growth' policy for the car population 'in the future'. The company raised prices again on Tuesday.
Mr. Ron Lim, general manager of Nissan agent Tan Chong Motor, said there seems to be 'panic buying'. "I don't know if people have been reading too much into the recent government statements, like 'zero growth'," he said, adding that some companies have taken bookings up till August. He said the recent announcement of a stricter Carbon Emission-based Vehicle Scheme could also be fanning the buying frenzy. From July, fewer cars will be entitled to carbon rebates, while more will attract surcharges as the Government tightens control of the tailpipe.
Mr. Lim noted that there is now 'a huge backlog' of orders and premiums could remain high if bookings continue to pile up."We really need time to let the backlog clear," he added.
