COE premiums low due to weak consumer sentiment
Certificate of entitlement (COE) premiums for cars ended lower at yesterday's tender compared with last month's, marking the steepest decline in over six months.
The decline is a reflection of weakening consumer sentiment due to the slowing economy and fears surrounding the coronavirus crisis.
The COE price for category A, cars up to 1,600cc and 130bhp, closed at $30,010, down from $35,010 two weeks ago. COE for cars above 1,600cc or 130bhp closed at $30,890, down from $37,705.
For the open COE category, which can be used for any vehicle type except motorcycles, the premium finished at $34,900, down from $37,500. The category is most often used for bigger cars.
The motorcycle premium ended at $4,401, down from $4,610. An exception to the overall decline was in the commercial vehicles category, which closed at $25,013, up slightly from $25,001.
Transport economist Michael Li said while the drop is a reflection of market sentiment, the current coronavirus crisis is unlikely to have a long-term effect on the transport economy. "Things will get back to normal after the crisis," he said. - CHEOW SUE-ANN