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COE car prices skyrocket
By Ewen Boey – December 8th, 2010
High demand for vehicles before the COE quota cut in February 2011 causes
prices to skyrocket (AFP)
COE premiums have skyrocketed in the latest round of bidding, with a
staggering jump of S$14,612 for cars over 1,600cc.
This brings the total premium for that category to S$62, 502.
Prices for the Open Category was up S$15,010 to S$64,900.
For smaller cars 1,600cc and below, the price rose S$8,604 to S$47,604.
These latest prices are the highest since 2000.
Goods vehicles and buses saw COE premiums increase S$799 to S$32,001, while motorcycle premiums rose S$200 to S$1,701.
The surge in COE prices may be attributed to the current high demand for vehicles before the upcoming COE quota cut, which will commence from February 2011.
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Business Times - 08 Dec 2010
Scramble for COEs likely in today's bidding exercise
Premiums expected to shoot up even further
By SAMUEL EE
(SINGAPORE) Distributors are expected to 'scramble' for COEs in today's bidding exercise - the second last one for the year - as some rush to secure certificates of entitlement before what they believe will be a further reduction in the quota.
'I don't think it will be a frenzy but there should be a scramble from now on because there are only three more tenders left before the new COE quota comes into effect,' said the managing director of a small mass-market dealership. 'If you don't go in now, it will get worse later.'
The announcement of the next COE quota - from February to July 2011 - is due next month and most car dealers are expecting it to shrink further because of the low number of deregistrations.
Deregistration numbers for Category A (below 1,600cc) and Cat B (above 1,600cc) cars have been on the general downtrend since March this year, after COE premiums began rising sharply.
The amount of new COEs released is determined largely by the number of vehicles deregistered in the preceding six-month period. With deregistrations sliding, there is pessimism over the size of the upcoming quota starting in February 2011.
'Looking at the numbers, I believe the whole of 2011 will get an allocation of no more than 25,000 passenger car COEs, which means a total of about 28,000 to 30,000 new car registrations next year (because of the spillover from this year's COE quota),' said the managing director.
The new car market in 2010 is already headed for a massive contraction, with total registrations of only slightly more than 41,000 passenger cars, or down almost 40 per cent from the 68,862 units in 2009.
As for today's COE premiums for Cat A, B and E (the open category), just about everyone is prepared for a spike. The jump during the last round three weeks ago to 10-year highs had left both customers and dealers 'shell-shocked', said the sales manager of a Japanese dealership. Cat A shot $4,999 to $39,000, while Cat B climbed $2,389 to $47,890 and Cat E rose $3,889 to $49,890.
'I hope premiums won't go up but it looks they all will because it is also the year-end and companies are closing their accounts,' said a sales manager, referring to how some firms try to use up their budgets before the start of a new financial year.
Then there are the 'healthy orders coming in because of the good bonuses'.
The sales manager added: 'And since it is a three-week interval between tenders, this means more orders than usual have been collected.'
The boss of one of the biggest dealerships in town expects Cat A and B premiums to rise by another $1,500 to $2,500 today.
'I hope it won't be another big jump of $5,000. That will kill the market,' he said.
Yet, a COE scenario that is composed of a small quota and high premiums may not lead to a shake-up of the car industry, according to the dealership boss.
'I am not sure it will happen,' he said. 'I thought some of the smaller brands would disappear but they are still around this year. And even more amazing is that there are new makes like the Holden HSV entering the market.'
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
.
COE car prices skyrocket
By Ewen Boey – December 8th, 2010
High demand for vehicles before the COE quota cut in February 2011 causes
prices to skyrocket (AFP)
COE premiums have skyrocketed in the latest round of bidding, with a
staggering jump of S$14,612 for cars over 1,600cc.
This brings the total premium for that category to S$62, 502.
Prices for the Open Category was up S$15,010 to S$64,900.
For smaller cars 1,600cc and below, the price rose S$8,604 to S$47,604.
These latest prices are the highest since 2000.
Goods vehicles and buses saw COE premiums increase S$799 to S$32,001, while motorcycle premiums rose S$200 to S$1,701.
The surge in COE prices may be attributed to the current high demand for vehicles before the upcoming COE quota cut, which will commence from February 2011.
.
Business Times - 08 Dec 2010
Scramble for COEs likely in today's bidding exercise
Premiums expected to shoot up even further
By SAMUEL EE
(SINGAPORE) Distributors are expected to 'scramble' for COEs in today's bidding exercise - the second last one for the year - as some rush to secure certificates of entitlement before what they believe will be a further reduction in the quota.
'I don't think it will be a frenzy but there should be a scramble from now on because there are only three more tenders left before the new COE quota comes into effect,' said the managing director of a small mass-market dealership. 'If you don't go in now, it will get worse later.'
The announcement of the next COE quota - from February to July 2011 - is due next month and most car dealers are expecting it to shrink further because of the low number of deregistrations.
Deregistration numbers for Category A (below 1,600cc) and Cat B (above 1,600cc) cars have been on the general downtrend since March this year, after COE premiums began rising sharply.
The amount of new COEs released is determined largely by the number of vehicles deregistered in the preceding six-month period. With deregistrations sliding, there is pessimism over the size of the upcoming quota starting in February 2011.
'Looking at the numbers, I believe the whole of 2011 will get an allocation of no more than 25,000 passenger car COEs, which means a total of about 28,000 to 30,000 new car registrations next year (because of the spillover from this year's COE quota),' said the managing director.
The new car market in 2010 is already headed for a massive contraction, with total registrations of only slightly more than 41,000 passenger cars, or down almost 40 per cent from the 68,862 units in 2009.
As for today's COE premiums for Cat A, B and E (the open category), just about everyone is prepared for a spike. The jump during the last round three weeks ago to 10-year highs had left both customers and dealers 'shell-shocked', said the sales manager of a Japanese dealership. Cat A shot $4,999 to $39,000, while Cat B climbed $2,389 to $47,890 and Cat E rose $3,889 to $49,890.
'I hope premiums won't go up but it looks they all will because it is also the year-end and companies are closing their accounts,' said a sales manager, referring to how some firms try to use up their budgets before the start of a new financial year.
Then there are the 'healthy orders coming in because of the good bonuses'.
The sales manager added: 'And since it is a three-week interval between tenders, this means more orders than usual have been collected.'
The boss of one of the biggest dealerships in town expects Cat A and B premiums to rise by another $1,500 to $2,500 today.
'I hope it won't be another big jump of $5,000. That will kill the market,' he said.
Yet, a COE scenario that is composed of a small quota and high premiums may not lead to a shake-up of the car industry, according to the dealership boss.
'I am not sure it will happen,' he said. 'I thought some of the smaller brands would disappear but they are still around this year. And even more amazing is that there are new makes like the Holden HSV entering the market.'
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
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