In the second COE bidding exercise for December, COE premiums see a drop in all categories, with the biggest drops seen in Cat B and E.
Premiums for Cat B, larger cars with more than 130bhp or engine displacements larger than 1,600cc, went down by $6,709 (12.5 percent) and ended at $47,002.
In Cat E, the open category, prices also fell by $6,323 (11.6 percent), with premiums closing at $48,011.
The fall in COE premiums can be attributed to a fall in demand, evidenced by the fewer bids in both Cat A and B. This is likely a result of diminished car-buying sentiment, brought about by impending impact of the new Vehicular Emissions Scheme (VES) driving up most car prices. In anticipation of the upcoming VES changes, many companies have already adjusted their prices upwards accordingly.
Whilst the number of bids in Cat E rose, the 11.6 percent drop in premiums indicate that bidders (likely car dealers) recognise the diminished car buying sentiment and are looking to lock up these open category COEs in preparation for 2018.
