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COE prices for cars hit fresh highs
By Lin Jiamei | Posted: 07 April 2010 1628 hrs
A long line of vehicles wait for the green light at a traffic junction in Singapore.
SINGAPORE: One car dealer calls it a tsunami, another describes it as the point of no return.
These best sum up sentiments, after COE prices hit fresh highs on Wednesday in the first bidding tender since a reduction in COE supply kicked in.
The biggest increase was in the big-car category, where the premium jumped S$9,412 to S$45,501. The COE for small cars meanwhile rose S$5,612 to S$34,001.
The premiums for both categories hit fresh highs that were last seen some eight to 10 years ago.
To put the figures in perspective, the COE for small cars was about S$5,000 about one year ago. Now, it is seven times more. For big cars, the COE is now nine times more than what it was a year ago.
In the Open Category, where the COEs can be used for any vehicle type but end up usually for cars, the premium climbed S$6,999 to S$49,000 on Wednesday.
Meanwhile, the COEs for commercial vehicles rose S$3,621 to S$36,511.
For motorcycles, the new premium was S$21 higher - at S$1,221.
Though dealers and buyers were braced for the prices to head north, they were still shocked and concerned.
Teo Hock Seng, managing director of Komoco Motors, said: "I think it is like a tsunami....an announcement (about COE supply cut) was made and everyone started to rush....we are all scuttling for the COEs. The reduction in the COEs has really put everyone in a big fight."
Raymond Tang from the Singapore Vehicle Traders Association said: "This is a signal for the market - that there is no return for low COEs anymore. So, if they are thinking about buying a car, this is definitely the time or else the COEs will be higher the next round."
By Lin Jiamei | Posted: 07 April 2010 1628 hrs
A long line of vehicles wait for the green light at a traffic junction in Singapore.
SINGAPORE: One car dealer calls it a tsunami, another describes it as the point of no return.
These best sum up sentiments, after COE prices hit fresh highs on Wednesday in the first bidding tender since a reduction in COE supply kicked in.
The biggest increase was in the big-car category, where the premium jumped S$9,412 to S$45,501. The COE for small cars meanwhile rose S$5,612 to S$34,001.
The premiums for both categories hit fresh highs that were last seen some eight to 10 years ago.
To put the figures in perspective, the COE for small cars was about S$5,000 about one year ago. Now, it is seven times more. For big cars, the COE is now nine times more than what it was a year ago.
In the Open Category, where the COEs can be used for any vehicle type but end up usually for cars, the premium climbed S$6,999 to S$49,000 on Wednesday.
Meanwhile, the COEs for commercial vehicles rose S$3,621 to S$36,511.
For motorcycles, the new premium was S$21 higher - at S$1,221.
Though dealers and buyers were braced for the prices to head north, they were still shocked and concerned.
Teo Hock Seng, managing director of Komoco Motors, said: "I think it is like a tsunami....an announcement (about COE supply cut) was made and everyone started to rush....we are all scuttling for the COEs. The reduction in the COEs has really put everyone in a big fight."
Raymond Tang from the Singapore Vehicle Traders Association said: "This is a signal for the market - that there is no return for low COEs anymore. So, if they are thinking about buying a car, this is definitely the time or else the COEs will be higher the next round."
