COE prices end mostly lower
Certificates of entitlement (COE) premiums ended mostly lower at the latest tender yesterday, as the coronavirus crisis dampened but did not extinguish demand for cars.
The COE price for cars up to 1,600cc and 130bhp ended 4.6 per cent lower at $31,210.
The premium for cars above 1,600cc or 130bhp closed at a 10-year low of $30,012 after an 8.5 per cent drop.
The price for the Open COE category, which can be used for any vehicle type except motorcycles but ends up mostly for bigger cars, was unchanged at $32,500.
While the falls were expected, motor traders were predicting a bigger correction.
Mr Neo Nam Heng, chairman of diversified motor group Prime, said: "The market was expecting a drop of $3,000 to $5,000, not $1,500 to $3,000."
The commercial vehicle COE premium fell by 9.1 per cent to close at $22,002 - its lowest in almost nine years.
Besides the worsening business sentiment, traders said fleet owners may be holding back for a new scheme that encourages buyers to switch to greener models.
The incentives for this kick in next year.
The motorcycle premium was the only one to buck the trend by ending 4.2 per cent higher at $4,489.
Industry watchers expect COE prices to remain soft in the coming tenders as Singapore and the world brace for more uncertainty. - THE STRAITS TIMES