<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>Oct 8, 2008
</TR><!-- headline one : start --><TR>COE premiums up <!--10 min-->
</TR><!-- headline one : end --><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Christopher Tan
</TD></TR><!-- show image if available --></TBODY></TABLE>
<!-- START OF : div id="storytext"-->CERTIFICATES of entitlement ended on modest increases on Wednesday, though there were fewer up for grabs in the first tender of a reduced supply of COEs.
Coupled with the fact that the exercise was after a three-week break - longer than the usual two-week intervals - the modest increase in premiums showed that the market for cars is weak, said traders.
A longer gap between tenders usually means significantly higher premiums, as traders have a bigger backlog of orders.
Mr Gavin Yeo, commercial director of Toyota agent Borneo Motors, one of the largest COE bidders here, said that under normal circumstances, COEs would have risen higher.
'It's just so many bad news, which has caused people to be more prudent,' Mr Yeo said, referring to the crises which have rocked global money markets in the last few weeks.
COEs for cars up to 1,600cc even ended 2.1 per cent lower at $13,801 - even though demand was boosted by 700 unsuccessful bids carried over from the previous tender.
The COE for cars above 1,600cc rose by 8.3 per cent to $14,400, while the Open COE, traditionally used mainly for cars, crept up by 1.1 per cent to $15,058.
Mr Neo Nam Heng, president of the Singapore Vehicle Traders Association, said the strong Japanese yen, which impacts the majority of vehicle importers here, helped to dampen the results.
The yen has gained over 10 per cent in the last month, to trade below 70 yen per $1 now. This has raised the cost price of cars by $3,000-$4,500, Mr Neo noted.
Still, premiums for bigger cars rose because their better profit margins allows sellers to bid more aggressively for certificates, he said.
On the other hand, sellers of commercial vehicles had to bid more aggressively too, but for a different reason. They had 30 per cent fewer COEs, as their quota bore the brunt of the cut in COE supply.
This sent premium for buses, trucks, vans and lorries up by 6.8 per cent to a six-month high of $15,899, making it now the priciest COE. Read the full story in Thursday's edition of The Straits Times.
</TR><!-- headline one : start --><TR>COE premiums up <!--10 min-->
</TR><!-- headline one : end --><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Christopher Tan
</TD></TR><!-- show image if available --></TBODY></TABLE>
<!-- START OF : div id="storytext"-->CERTIFICATES of entitlement ended on modest increases on Wednesday, though there were fewer up for grabs in the first tender of a reduced supply of COEs.
Coupled with the fact that the exercise was after a three-week break - longer than the usual two-week intervals - the modest increase in premiums showed that the market for cars is weak, said traders.
A longer gap between tenders usually means significantly higher premiums, as traders have a bigger backlog of orders.
Mr Gavin Yeo, commercial director of Toyota agent Borneo Motors, one of the largest COE bidders here, said that under normal circumstances, COEs would have risen higher.
'It's just so many bad news, which has caused people to be more prudent,' Mr Yeo said, referring to the crises which have rocked global money markets in the last few weeks.
COEs for cars up to 1,600cc even ended 2.1 per cent lower at $13,801 - even though demand was boosted by 700 unsuccessful bids carried over from the previous tender.
The COE for cars above 1,600cc rose by 8.3 per cent to $14,400, while the Open COE, traditionally used mainly for cars, crept up by 1.1 per cent to $15,058.
Mr Neo Nam Heng, president of the Singapore Vehicle Traders Association, said the strong Japanese yen, which impacts the majority of vehicle importers here, helped to dampen the results.
The yen has gained over 10 per cent in the last month, to trade below 70 yen per $1 now. This has raised the cost price of cars by $3,000-$4,500, Mr Neo noted.
Still, premiums for bigger cars rose because their better profit margins allows sellers to bid more aggressively for certificates, he said.
On the other hand, sellers of commercial vehicles had to bid more aggressively too, but for a different reason. They had 30 per cent fewer COEs, as their quota bore the brunt of the cut in COE supply.
This sent premium for buses, trucks, vans and lorries up by 6.8 per cent to a six-month high of $15,899, making it now the priciest COE. Read the full story in Thursday's edition of The Straits Times.
