Certificate of Entitlement (COE) premiums for big cars plummeted, with Category B and open category premiums seeing a 37.3 per cent and 29.3 per cent drop respectively in premiums at the end of the latest bidding exercise today. This is the first bidding exercise since curbs on car loans were imposed by the Monetary Authority of Singapore and the main road tax was also raised.
The COE premium for big cars (1,601cc and above) dropped by 37.3 per cent from S$92,667 in the earlier bidding exercise to S$58,090.
In the Open category, where COEs can be used for any vehicle type, but are usually used for big cars, the premium dropped by 29.3 per cent to S$65,001 from S$91,910 last month
The premium for cars 1,600 cc and below (Category A) finished at S$74,686, down for the previous price of S$78, 301 which was recorded at the last bidding exercise.
Premium for motorcycles increased by 25.3 per cent to S$1,895 while the premiums for commercial vehicles also saw a 0.7 per cent increase to finish at S$53,900.
SOURCE
What can I say!! It's definitely a knee jerk reaction, and from today onwards, hordes of car buyers will rush in on Cat B cars until the next bidding exercise two weeks later. It will bounce back on the next exercise for sure.
What's the best car to buy now are those above 1600cc with their OMV below S$25,000. Such cars will have massive savings considering the excess amount from the OMV will not translate to much increase on the ARF. If this was a few years back, the Subaru WRX will be the best value for money car to get considering it's 2L and its OMV is just a wee bit below S$20,000 and will be have any added ARF. This will translate to at least $30,000 savings, almost equivalent to the amount of COE dropped for Cat B.
Are you heading to the car showroom soon?
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