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Coffeeshop Chit Chat - COE prices soar - now nearly $20K liao!</TD><TD id=msgunetc noWrap align=right>
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</NOBR> </TD><TD class=msgDate width="30%" noWrap align=right>Sep-9 8:32 pm </TD></TR><TR class=msghead><TD class=msgT height=20 width="1%" noWrap align=right>To: </TD><TD class=msgTname width="68%" noWrap>ALL <NOBR></NOBR></TD><TD class=msgNum noWrap align=right> (1 of 5) </TD></TR></TBODY></TABLE></TD></TR><TR><TD class=msgleft rowSpan=4 width="1%"> </TD><TD class=wintiny noWrap align=right>20715.1 </TD></TR><TR><TD height=8></TD></TR><TR><TD class=msgtxt><TABLE border=0 cellSpacing=0 cellPadding=0 width="100%"><TBODY><TR><TD>COE prices soar, with car premiums close to $20,000
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<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->AFTER a tentative pause last month, Certificate of Entitlement (COE) prices resumed their year-long surge yesterday.
At the close of the latest tender at 4pm, car premiums ended close to the $20,000 mark, and the motorbike premium crossed the $1,000 level as buyers ignored the supposedly inauspicious Hungry Ghost month.
COEs for cars up to 1,600cc saw the biggest rise, ending 20 per cent up at $18,020 - the highest in over four years.
COEs for cars above 1,600cc rose 18.4 per cent to hit an 18-month-high of $19,289.
The Open COE, which can be used for any vehicle type but which ends up mainly for cars, climbed 10.8 per cent to $19,830, the highest since 2005.
The motorcycle COE finished 19.2 per cent higher at $1,051, while the commercial vehicle COE bucked the trend to close 8.6 per cent lower at $16,001 - although this is still close to the highest level reached in over two years.
The latest outcome does not bode well for buyers, who have seen showroom prices rise by more than $10,000 since the end of last year. Car dealers are expected to raise prices again, and substantially.
Nissan agent Tan Chong said it is likely to up prices by $3,000. And Mitsubishi agent Cycle & Carriage said its rates will go up by 'at least $3,000'.
Mr Ron Lim, general manager of Nissan agent Tan Chong, said: 'Most companies will adjust aggressively this round. They won't want to take the chance of missing out on getting their COE before the quota cut next month.'
COE supply for the period from next month to March is widely expected to be trimmed.
Motor Traders Association president Ms Tan Kheng Hwee said: 'The industry is rather nervous about the upcoming quota revision as all data points to a much lower COE quota, perhaps as much as 30 per cent fewer COEs by next month.'
As a result, she expects premiums to reach '$30,000 to $40,000 in six months' time if the economic recovery remains on track'.
Traders attributed yesterday's results to two other reasons: A three-week gap between yesterday and the previous tender; and recent new car launches.
The usual gap between tenders is two weeks. With a three-week break, dealers have more time to collect orders, resulting in higher pent-up demand for COEs. In recent weeks, new car launches have included the popular Mercedes-Benz E-class and the Chevrolet Cruz.
CHRISTOPHER TAN
[email protected]
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<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->AFTER a tentative pause last month, Certificate of Entitlement (COE) prices resumed their year-long surge yesterday.
At the close of the latest tender at 4pm, car premiums ended close to the $20,000 mark, and the motorbike premium crossed the $1,000 level as buyers ignored the supposedly inauspicious Hungry Ghost month.
COEs for cars up to 1,600cc saw the biggest rise, ending 20 per cent up at $18,020 - the highest in over four years.
COEs for cars above 1,600cc rose 18.4 per cent to hit an 18-month-high of $19,289.
The Open COE, which can be used for any vehicle type but which ends up mainly for cars, climbed 10.8 per cent to $19,830, the highest since 2005.
The motorcycle COE finished 19.2 per cent higher at $1,051, while the commercial vehicle COE bucked the trend to close 8.6 per cent lower at $16,001 - although this is still close to the highest level reached in over two years.
The latest outcome does not bode well for buyers, who have seen showroom prices rise by more than $10,000 since the end of last year. Car dealers are expected to raise prices again, and substantially.
Nissan agent Tan Chong said it is likely to up prices by $3,000. And Mitsubishi agent Cycle & Carriage said its rates will go up by 'at least $3,000'.
Mr Ron Lim, general manager of Nissan agent Tan Chong, said: 'Most companies will adjust aggressively this round. They won't want to take the chance of missing out on getting their COE before the quota cut next month.'
COE supply for the period from next month to March is widely expected to be trimmed.
Motor Traders Association president Ms Tan Kheng Hwee said: 'The industry is rather nervous about the upcoming quota revision as all data points to a much lower COE quota, perhaps as much as 30 per cent fewer COEs by next month.'
As a result, she expects premiums to reach '$30,000 to $40,000 in six months' time if the economic recovery remains on track'.
Traders attributed yesterday's results to two other reasons: A three-week gap between yesterday and the previous tender; and recent new car launches.
The usual gap between tenders is two weeks. With a three-week break, dealers have more time to collect orders, resulting in higher pent-up demand for COEs. In recent weeks, new car launches have included the popular Mercedes-Benz E-class and the Chevrolet Cruz.
CHRISTOPHER TAN
[email protected]
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