COE prices for big and small cars plunge over 50%

Certificate of Entitlement (COE) prices for cars in the A and B categories have fallen over 50 percent for the month of February. COEs for cars less than 1600 cc (Category A) dropped by S$6,289 to S$5,200, while those for cars more than 1600 cc (Category B) now cost S$6,002, down by S$6,150.

Some car dealers attributed the drop in COE prices to the upcoming Lunar New Year. They said the new-year rush for new cars is over, and those who had planned on a new set of wheels have already secured them before the bidding exercise. Car dealers expect COE prices to stabilise or even rise after the Lunar New Year.

- Big news in Singapore that many people, including my colleagues, have been talking about. Actual car prices didn't go down that much. The car sellers probably expect a rebound.

The COE renewal price did not move much though, it's still somewhat north of $10K. That's because it's an average of COE prices over the past 3 months. Stock traders might call it a 90dma (90-day moving-average).

A colleague asked me why. I said that either gov.sg has printed a lot more COE's, or the economy is going to crash. Or, there could be policy changes in the next Budget that make car ownership cheaper while making operating them more expensive - like raising road taxes, or ERP rates, or petrol taxes. Shrug.

(2007-02-14 20:02:34 SGT) [Biz] Permalink

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