COE price for smaller cars hits six-year high of $57,010

This article is more than 12 months old

Dec 09, 2021 06:00 am

Those shopping for affordable cars have hit a cost bump, with the certificate of entitlement (COE) price for smaller cars hitting a six-year high yesterday in the latest tender. The premium for cars up to 1,600cc and 130bhp ended at $57,010, up 3.7 per cent from the last tender on Nov 17.

This is the highest amount in that category since November 2015, when it was $59,200.

The premium for larger cars above 1,600cc or 130bhp is also up, at $80,401, compared with $79,601 in the previous tender, while that for goods vehicles and buses finished 3.4 per cent higher at $45,000. The motorcycle COE price rose to $9,401, from $9,381.

The premium for Open COE, which can be used for any vehicle type but ends up mostly for bigger cars, was the only one to fall, closing 1.2 per cent lower at $85,000. A total of 2,569 bids were received for 1,791 COEs. Motor traders said the premium for smaller cars is likely to keep creeping upwards as the supply of COEs keeps shrinking.

Mr Neo Nam Heng, chairman of diversified motor group Prime, said: "If not for the bad sentiment because of Covid-19, Cat A (for cars up to 1,600cc and 130bhp) would have crossed the $60,000 mark." - THE STRAITS TIMES