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<TABLE border=0 cellSpacing=0 cellPadding=0 width=452><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published October 22, 2009
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Big and small car COE premiums rise
By SAMUEL EE
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COE premiums for big and small cars rose yesterday as a sharply reduced quota outweighed what some distributors say is a generally quiet market.
But the premium for commercial vehicles fell significantly, after soaring previously.
Yesterday's tender exercise for certificates of entitlement was the second since the mid-quota year review lopped 15.7 per cent from the next six months' supply of COEs.
Category A for cars below 1,600cc rose $2,698 to $18,899, while Cat B for cars above 1,600cc climbed $1,401 to $19,510.
But Cat E, the open category, dived $1,400 to $19,901. And so did Cat C for commercial vehicles, which plunged $3,582 to $18,110.
But Cat D for motorcycles edged up $29 to $931.
According to the senior manager of a large dealership, the drop in Cat C reflects the soft market.
'Two weeks ago, many distributors were panic bidding and pushed up the Cat C premium,' he said, referring to the goods vehicle category's near 45 per cent jump in the preceding tender. 'That was a knee-jerk reaction to an unexpectedly sharp cut in Cat C COEs. But in general, Cat C sales are not that strong.'
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</TD></TR></TBODY></TABLE>The manager said that he suspects, in fact, that some distributors may be stuck with stocks of Cat C and Cat E COEs. Both are transferrable and in recent months, the latter has been used for the former.
On the other hand, the premiums for Cat A and B increased yesterday, because of aggressive promotions.
'Since the market isn't that strong, some distributors are offering aggressive discounts and over-trades in order to drum up sales,' the manager said.
Still, prospective car buyers appear to be more circumspect about their purchases, and that is why only some brands such as Kia and Toyota are still selling well, he said.
'Today's customers are looking for value for money. It's not like in the past, when a cut in the quota would see people rushing to the nearest showroom.'
</TD></TR></TBODY></TABLE>
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Big and small car COE premiums rise
By SAMUEL EE
<TABLE class=storyLinks border=0 cellSpacing=4 cellPadding=1 width=136 align=right><TBODY><TR class=font10><TD width=20 align=right>
</TD><TD>Email this article</TD></TR><TR class=font10><TD width=20 align=right></TD><TD>Print article </TD></TR><TR class=font10><TD width=20 align=right></TD><TD>Feedback</TD></TR></TBODY></TABLE>COE premiums for big and small cars rose yesterday as a sharply reduced quota outweighed what some distributors say is a generally quiet market.
But the premium for commercial vehicles fell significantly, after soaring previously.
Yesterday's tender exercise for certificates of entitlement was the second since the mid-quota year review lopped 15.7 per cent from the next six months' supply of COEs.
Category A for cars below 1,600cc rose $2,698 to $18,899, while Cat B for cars above 1,600cc climbed $1,401 to $19,510.
But Cat E, the open category, dived $1,400 to $19,901. And so did Cat C for commercial vehicles, which plunged $3,582 to $18,110.
But Cat D for motorcycles edged up $29 to $931.
According to the senior manager of a large dealership, the drop in Cat C reflects the soft market.
'Two weeks ago, many distributors were panic bidding and pushed up the Cat C premium,' he said, referring to the goods vehicle category's near 45 per cent jump in the preceding tender. 'That was a knee-jerk reaction to an unexpectedly sharp cut in Cat C COEs. But in general, Cat C sales are not that strong.'
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On the other hand, the premiums for Cat A and B increased yesterday, because of aggressive promotions.
'Since the market isn't that strong, some distributors are offering aggressive discounts and over-trades in order to drum up sales,' the manager said.
Still, prospective car buyers appear to be more circumspect about their purchases, and that is why only some brands such as Kia and Toyota are still selling well, he said.
'Today's customers are looking for value for money. It's not like in the past, when a cut in the quota would see people rushing to the nearest showroom.'
</TD></TR></TBODY></TABLE>
