COE prices end mostly lower due to Uber’s car sales, Latest Singapore News - The New Paper

COE prices end mostly lower due to Uber’s car sales

This article is more than 12 months old

Certificates of entitlement (COEs) ended mostly lower yesterday, as news of Uber selling its cars dampened demand for new cars.

COEs for cars up to 1,600cc and 130bhp fell by 2.4 per cent to close at $38,001. COEs for cars above 1,600cc or 130bhp slipped 1.3 per cent to finish at $37,989.

Open COEs, which can be used for any vehicle type except motorcycles, bucked the trend, inching 0.3 per cent upwards to close at $38,700.

Commercial vehicle COEs tumbled 9.9 per cent to finish at $29,901 - its lowest in a year.

Dealers said this was because of a bigger supply of certificates, as well as unused COEs in recent tenders being ploughed back into the system.

Mr Raymond Tang, managing director of used-car dealer Yong Lee Seng Motor, said he expects commercial vehicle COEs to rebound.

Motorcycle premiums dipped 1.9 per cent to $7,115.

Motor traders said demand continued to be weak despite promotions to clear the stock of vehicles that will incur higher taxes from July, when a new emission ruling is expected to push up prices of several models by as much as $20,000.

Mr Neo Nam Heng, chairman of diversified motor group Prime, said Uber-owned Lion City Rentals selling off hundreds of its cars could have reduced demand for new cars.

Last week, The Straits Times reported that Uber was selling as many as 400 cars that it has failed to rent out to drivers for as long as a year.

"These cars have flooded the market. And it is causing dealers to be a bit nervous," Mr Neo said, explaining that these cars, most of which are still under warranty, had diverted demand away from new cars.