COE prices fall across all categories in latest bidding exercise

Certificate of Entitlement (COE) premiums fell across the board at the close of November's first bidding exercise on Wednesday.

This is the second consecutive tender where COE prices have fallen in all categories.

The biggest drop in COE price - at 18.3 per cent - is for commercial vehicles. It ended at S$55,503.

Dealers have been rushing to clear old stock of Euro 4 vehicles before new regulations kick in next year.

In January, new diesel vehicles have to meet the more stringent Euro 5 emission standard.

Commercial vehicle traders have written in to the National Environment Agency about two weeks ago to appeal for a delay in the requirement for the Euro 5 emission standard. At this point in time, they are still waiting for the results of that appeal.

The COE price for small cars fell by 5.6 per cent to S$72,609.

For big cars, the premium went down by 3.8 per cent to S$84,578.

Weiye Wang, procurement manager at Supercars Concept, said: "Generally there is no new launch of exciting new models and coming to year end, people's expenditure patterns will be geared towards other consumer goods, especially when leveraging ability is severely curbed."

Car dealers also expect COE premiums to inch up again in the next few bidding exercises.

Mr Wang said: "There will be certain corrections. The probability of it going up definitely exists, because as the festive season goes over, the consumer will be looking at more pertinent needs of their mobility solution, and that is when the demand will go higher."

The open category COE price dipped about 3.6 per cent to close at S$89,001.

COE premium for motorcycles slid 5.2 per cent to S$1,710.

SOURCE

A slip across the board for the second consecutive time. What are the chances of a third slip in three biddings? Suddenly the 100k mark seems so far. The good thing is the commercial category slipping the most as they're the direct cause of inflation to business costs, which will be passed to consumers.

Camry sedan and Lexus SUV Ang Mo Kio road rage

Another case of two vehicles not giving way to each other and ended up with some sort of a road rage. That stunt by the black SUV looks like one from the movies; pushing the tail and making the car lose traction.

Cyclist breaks all traffic rules, stops traffic near Vivocity

Too bad the volume is mute, I believe the driver must have sounded the horn at the cyclist to sort of "infuriate" him. However, the cyclist is moving to closely with the vehicles around, leaving himself vulnerable to contacts which will result in an accident.

Certificate of Entitlement (COE) premiums for vehicles continued to surge across the board at the end of the latest bidding exercise which ended today, with the bigger car and open categories crossing the S$90,000-mark.

This is the second bidding exercise since the Land Transport Authority announced engine power caps for the small car category last month.

COE premiums for small cars (1,600cc and below) increase to close 1.49 per cent higher at S$85,000, compared with S$83,751 in the previous bidding exercise.

Premiums for big cars (1,601cc and above) increased by 8.42 per cent to cross the from S$86,239 to S$93,500.

In the Open category, where COEs can be used for any vehicle type but end up mainly for cars, the premium increased by 7.92 per cent to S$93,889 from S$87,001.

The COE premium for commercial vehicles continued to break past records, inching up 0.41 per cent to S$76,310 from S$76,001, while the premium for two-wheelers increased by 15.15 per cent to S$1,961.

SOURCE

Very sharp increase for both Cat B and Open Cat. The rocket towards the $100k seems relentless.

Worry over soaring COE cost

Sky-high certificate of entitlement (COE) prices for commercial vehicles have become a worry for businesses, motor traders and the authorities.

Premiums for vans, trucks and buses have been setting record after record in recent months.

Now at $76,001, it has more than doubled its price since 2011 - chalking the biggest rise among all COE categories in the two years.

The motor industry attributes the climb to three factors.

First, there has been a construction boom that is driving demand for heavy vehicles such as concrete carriers and dump trucks.

According to Mr Ron Lim, general manager of Nissan agent Tan Chong Motor, heavy vehicles now make up more than 50 per cent of commercial vehicle sales - up from the usual 20 per cent.

Second, motor dealers are clearing existing stock ahead of a new emission standard that kicks in on Jan 1. Third, speculators may be hoarding COEs in the hope of turning a profit by reselling them to motor dealers stuck with stock as the new year draws nearer.

Said Mr Lim: "If there is speculation, the Government should step in quickly to address the situation. Or consider a three- to six-month extension to the emission deadline. This should quell all speculative activities."

The Land Transport Authority (LTA) said it is hard to detect speculative activities. But it added that there are deterrents in place, such as a shorter three-month validity period for commercial COEs, half that of car certificates.

Still, an LTA spokesman said it is looking at ways to improve the system, including putting light and heavy commercial vehicles in separate categories. Buyers of the latter are better able to tolerate high COE prices since heavy vehicles are far costlier.

Transport Minister Lui Tuck Yew told Parliament in March that the Government "will study carefully" if buyers of "light goods vehicles should pay the same COE premium as heavy and very heavy goods vehicles".

Small and medium-sized businesses hope something will be done soon. Association of Small and Medium Enterprises president Chan Chong Beng said that the issue of high vehicle costs has overtaken labour shortage as the top concern raised by members. "For many small businesses, a vehicle is a must... And because of the new emission standard, prices will continue to rise next year, and that's very, very scary."

Vehicle cost will account for a bigger cost component for businesses, Mr Chan added. "Many, like hawkers, will find it hard to pass it on to consumers."

He said having separate COE categories for light and heavy vehicles would be "a good solution".

Ms Ivy Tao, 54, who runs a fleet of buses ferrying workers, said she has no choice but to delay replacing her older vehicles. "COEs are high, fuel prices are high. We don't feel secure any more."

LTA said businesses can consider extending their expiring COEs - by paying a prevailing quota premium - by five years, which they can do twice now since a restriction was lifted in February.

Previously, these COEs could either be extended by five or 10 years. Owners who chose the former had to scrap their vehicles at the end of their extension. Since the policy change, LTA said about 96 per cent of commercial COE renewals have been for five years, up from 57.

SOURCE

Segregating the different types of commercial vehicles is a good idea, putting less stress on small businesses like hawker stall owners. The boom in construction comes with a price, quite literally.

Sales of smaller Cat A cars slow after changes to COE announced

Some mass market car dealers said sales for smaller Category A cars has slowed since changes to the Certificate of Entitlement (COE) system were announced earlier this month.

Starting next February, the changes will include a new criteria for Category A cars to limit engine power to not more than 130 brake horsepower.

The changes will kick in next February.

Potential buyers MediaCorp spoke with are unsure where COE prices would head.

Some dealers have already introduced new deals to try and woo buyers of smaller cars.

Tan Chong Motors said under its new package, it's offering a S$20,000 discount.

It expects COE prices to fall by that amount in the next six months.

It is also offering buyers 12 rounds of COE bidding over a six-month period with a budget of S$60,000.

If COE prices are above S$60,000, buyers can choose to not purchase the car.

The COE price for Category A cars in the last bidding exercise was S$83,751.

Ron Lim, general manager of Tan Chong Motors, said: "If the continental mix or the luxury mix are clearing models at such a fast rate as what they have mentioned, they could've cleared the stock much earlier than next February. Given that, there could be a window period where COE might correct more aggressively and earlier than expected February or March."

SOURCE

With so much time left till we're at February, don't expect the continental mix to simply stop importing their Cat A cars once current stocks have been cleared, thus the drop in COE won't probably happen so soon. Car buyers should sit back and watch how the prices will unfold until February arrives.

COE prices rise across the board

Certificate of Entitlement premiums increased across the board in the second bidding exercise for September.

This was the first bidding exercise since the government recently tweaked the COE system, introducing a new criterion for Category A cars. From February next year, cars in that category must not have an engine power of more than 130bhp.

At the end of the tender on Wednesday, the COE price for small cars closed at S$83,751 - an increase of S$6,447.

The premium for big cars ended at S$86,239 - up by S$9,139, the biggest rise in the tender.

Open Category COEs, which can be used for any vehicle type but end up mainly for cars, rose S$7,001 to close at S$87,001.

For commercial vehicles, the COE prices inched up by S$2,002 to close at S$76,001.

COEs for motorcycles ended at S$1,703, an increase of S$43.

Industry watchers had expected COE prices to go up after the government tweaked the system last week.

However, what surprised them was the extent of the increase.

COE premiums for bigger cars surged by nearly 12 per cent.

Raymond Tang, honorary secretary of the Singapore Vehicle Traders Association, said: "After February, Cat B will have a big group of cars going in there... from Cat A. So, most of the people are worried that will cause the COE of Cat B to be overcrowded."

COE prices for smaller cars went up by more than 8 per cent.

Car dealers noted that these prices are inching closer to record highs seen earlier this year.

Ron Lim, general manager of Tan Chong Motor, said: "A lot of people are buying into the story that the COE will go up with this tweak. In a way, it is a self-fulfilling prophecy.

“People are rushing in, but with today's rise, hopefully consumers will take a step back and try to digest the situation and ask themselves whether it is a rational thing to do, to rush in like that.

“We are all trending near record high numbers, does it actually make sense or not is a good question."

Industry experts said that whether or not COE prices will continue to soar depends on the amount of car stock left from car dealers affected by the changes. It also depends on how much consumers can digest such price increases.

Car traders still expect car showrooms to continue to be packed in the months ahead.

However, they cautioned that if COE prices are being driven up so high now, a more drastic correction will be needed later.

SOURCE

Like clockwork, COE rocketed after the latest bidding since revealing the new ruling. The rush for the cars definitely inflicted this balloon, and the higher it will go if the rush doesn't subside. It will come to a point where consumers are finally finding it hard to swallow the inflation and start to back out, but that is unlikely.

With the CNY coming in less than 4-months' time, the hot period for car purchase is just round the corner. This will further add fuel to the fire and dealers are already expecting COE to hit above S$100k before February.

High traffic at car showrooms after COE tweaks

Some car showrooms were packed with potential buyers on Saturday, following the changes to the Certificate of Entitlement (COE) system announced earlier this week.

Some carmakers even cut prices ahead of the changes, which will come into effect next year.

Swedish carmaker Volvo said traffic at their showroom doubled, as they dangled discounts ranging between S$20,000 and S$30,000.

The luxury car maker has five models with an engine capacity of below 1,600cc.

But these models also have a high engine horsepower of more than 130 brake horsepower.

From February next year, these will be transferred from the current category A to category B, competing with other premium brands.

Carmakers seem to be benefiting, at least for now.

Chow Yi Ling, marketing manager for Volvo Wearnes Automotive, said: "Since the announcement of the COE re-categorisation, we have seen a surge in showroom traffic. Customers are even coming in on weekdays. In fact, we even saw sales increase mainly in Cat A cars.

"Although there is a demand for Cat A cars, there are also people looking for Cat B cars at the moment, because they don't know what is going to happen after the policy sets in when all the current Cat A models are moved to Cat B, so people who are keen or ready to buy are going to buy now as well."

Customers said they are likely to buy now, as the cars they are eyeing could cost more once the new rules kick in.

The changes were made after several months of public consultation to better ensure elements of social equity in car ownership.

SOURCE

And just as expected, the car showrooms are packed with the rich buyers looking to loot a Cat A luxurious car one last time before they get shifted into the Cat B COE. With Volvo models going for discounts between 20-30k, I admit that it is quite a draw. However, take a step back and think.

If the demand rises, the COE bidding price will follow suit, and that will mean a rocketing Cat A COE, which somehow defeats any purpose of a discount isn't it? If a Cat A COE is 90k whereas a Cat B COE is 70k, the discounts will be all wiped out. Does it means these >130BHP cars will be cheaper now as compared to after they're shifted to Cat B? Not exactly so.

Luxury car dealers look for ways to clear stock

Some luxury car dealers are gearing up to lure buyers to their showrooms, beginning this weekend, in a bid to clear stocks of vehicles that will be reclassified as premium models from next February.

The move follows changes in the certificate of entitlement (COE) system, announced on Monday, in which a car's engine power will be included as a new criterion. Cars with over 130bhp or an engine exceeding 1,600cc will fall into Category B.

Dealers planning to go on a sales drive include Volvo agent Wearnes Automotive, which is looking to sell models like the S60 and S80. These currently belong to Category A - which caps engine displacement at 1,600cc - but will be re-classified under Category B next year.

Mr Victor Kwan, managing director at Wearnes Automotive, said the dealership will start clearing its 1.6-litre engine cars with "aggressive pricing".

SOURCE

Are you heading for the Volvo showroom this weekend? The S60 and S80 both sport a 1.6L engine but have a humongous 180bhp under the hood. In any case, with aggressive pricing comes the demand. Expect the Cat A COE to spiral upwards.

Top supplier of car parts concerned over new COE criterion for Cat A

In a rare move, one of the world’s leading suppliers of automotive components, Robert Bosch (South East Asia), has voiced its concerns about the Land Transport Authority’s (LTA) move to layer on engine power capacity in the classification of small cars for the Certificate of Entitlement system.

Asking the LTA to “reconsider” the new criterion for Category A cars, the company outlined two “unfavourable outcomes” from the tweak, which was announced on Monday and will be implemented in February.

First, manufacturers and dealers will bring into the market cars with “outdated technologies”, which are less fuel-efficient and will emit more carbon dioxide.

“This is a regressive step towards meeting the Singapore Government’s target of lowering overall carbon emissions by 11 per cent (potentially 16 per cent) by 2020,” Bosch said in a statement.

Second, it argued, manufacturers may try to meet the new 97 kilowatts criterion for cars with engine capacities of 1,600cc by curbing engine power output to pass pre-registration inspection tests. This could be done by encoding a limiter within the engine control unit of the vehicle.

Said Bosch: “This limitation can be easily removed after the vehicle leaves the showroom and is not easily detected during mandatory vehicular checks.”

It added: “Introduction of engine power into the COE system favours old technologies and is detrimental to the quality of life for Singaporeans, as it does not achieve a reduction in emission levels.”

Speaking to TODAY, Mr Klaus Landhaeusser, Bosch’s Regional Head, External Affairs and Governmental Relations (South-east Asia), added that the new regulations may lead to more car owners choosing to illegally modify their cars by leveraging on technology to circumvent the limiter placed in the vehicles.

While there are already laws in place against such illegal modifications, Mr Landhaeusser said tracking the horsepower of a car requires a chassis dynamometer, which regular vehicle inspection companies do not have as engine power inspections are not required in regular vehicle checks.

He said: “This is a very expensive machine and … it is only available in workshops which do the tuning themselves.” Bringing in the chassis dynamo systems will add costs to inspection companies, he added.

When asked why Bosch is concerned about the criterion, Mr Landhaeusser said: “We are developing systems for all car manufacturers, whether it is new or old technologies. We also have a very strong lead when it comes to saving the environment.”

In response, the LTA reiterated that it will be implementing “pre-registration safeguards through its vehicle type approval process”. The authority said it will not approve car models which have maximum power output specification that is lower than the same models approved previously, or what has been declared in other markets.

“This will serve as a deterrent against anyone who tries to tune down the maximum power output of his car to qualify for Cat A,” it added.

TODAY understands that the LTA has also brought in chassis dynamometers for the inspection of vehicle engine power.

On car manufacturers bringing in models which are less environmentally-friendly, the LTA said carbon emissions are already accounted for under the Carbon Emissions-based Vehicle Scheme.

“Carbon emissions and fuel efficiency are not good proxies for the value of a car, and could end up penalising mass-market models,” said an LTA spokesperson. The authority also emphasised that it will “review the criteria every few years and consider if adjustments are necessary”.

Dealers TODAY spoke to felt that most owners will not choose to illegally modify their cars.

Singapore Vehicle Traders Association Honorary Secretary Raymond Tang said: “Most car buyers usually go for luxury or continental cars just for the brand name and the status that comes with it. They are usually not so concerned about engine power.”

Motor Traders Association President Glenn Tan also pointed to liability problems of illegally modifying cars. “If they do that, they void the entire warranty of the vehicle because they are forcing it to work outside the operating perimeters of the vehicle,” he said.

“Also, there is an insurance and product liability problem. If you tune it outside of what is promulgated, the insurance can choose not to cover your vehicle. If you kill somebody, there is criminal liability.

“Whoever tunes it illegally, be it the dealers or the consumers, they will have some hand in criminal liability and they have to bear this in mind as well,” Mr Tan added.

SOURCE

So, the loopholes are covered by LTA. Cars with a different power rating as opposed to the official specs release will not be granted access to Singapore's market. Therefore, the prospect of down tuning car engines will not happen nor help the case.

Demand for used cars set to rise after changes to COE

The demand for used cars is expected to go up following changes to the Certificate of Entitlement (COE) announced on Monday.

The Singapore Vehicle Traders Association believes car buyers will consider buying used cars until the market stabilises.

Car dealers expect premiums in Category A and B to remain high -- at least until the changes in Category A kick-in in February next year.

Cars belonging to Category A must not have more than 130bhp of engine power. This is on top of the existing one that caps engine capacity at 1,600cc.

Dealers expect to see good demand for newer used-cars because these will still be more affordable than brand new ones. Used-cars that have a few more years left in their COE could also be popular.

Raymond Tang, honorary secretary of the Singapore Vehicle Traders Association, said: "Because of the changes, most consumers will be unsure what to do, what should they buy.

"I think the best way is to go in and buy a more stable car, aged, left with two years, three years, or four years and see what will be the situation in the market. And these range of cars they are very near to the paper value, and I think there is no risk for the consumer."

Before the changes take effect, industry players expect car agents to quickly clear some of their high powered-cars that are currently in Cat A. At the same time, consumers may also rush to buy a luxury Cat A car.

The used-car market took a hit in 2013 when the Monetary Authority of Singapore imposed loan curbs.

Under current rules that took effect in late February, used-car buyers can borrow only up to 60 per cent of the car's purchase price. The maximum period of the loan is also capped at five years.

Industry players said the re-categorisation of COE may prompt the entry of different car models to suit the new requirements. However, they doubt if more premium brand diesel models that typically have lower horsepower, may be introduced.

Mike Wee, owner of Mayfair Motoring, said: "Diesel cars at this moment is not that popular, because (in the past), you have to pay a road tax (which is several times higher).

"People are concerned next time if (the government) were to remove this benefit and the road tax may become five to six times higher. So, I think it's difficult for them to sell their cars."

An estimated 332 diesel cars were registered in Singapore last year. This is a relatively small percentage when compared with total new car registrations of nearly 28,000 in 2012.

SOURCE

Highly doubt diesel powered cars will pick up in Singapore, but for bystanders waiting to get a car, I guess mostly will wait till Feb'14 to make their decisions. As for second hand cars getting more attention, most likely it is only the older ones which will be snapped up as they're relatively much cheaper.

Come Feb'14, the best selling Cat A car will probably be VW Jetta 1.4 TSI. With its 1.4L engine, it's able to produce 122BHP of power and an impressive 200Nm of torque. Higher OMV and having a better premium feel, it's a winner.

Changes to COE: Government includes car engine power to categorisation

As announced today by the Minister for Transport, Mr Lui Tuck Yew, the Land Transport Authority (LTA) has completed the public consultation on possible refinements to the Certificate of Entitlement (COE) system to better ensure some element of social equity in car ownership.

After careful consideration, LTA said it will retain the existing criterion for Category (Cat) A that the engine capacity of the car should not exceed 1,600 cylinder capacity (cc), and add a new criterion that the engine power of the car should not exceed 97 kilowatts (kW) (equivalent to about 130 brake horsepower (bhp).

LTA said it will not implement a surcharge on multiple car ownership, in view of concerns over its effectiveness and possible impact on larger households.

SOURCE

The C180K and 116i will be facing a massive drop in sales coming Feb'14 going by this new rule. However, it is also possible for car makers to detune their cars to 130BHP or below. After all the hassle and discussion, more is expected from LTA. This change is probably not going to do much to the sky high COE prices. We shall see next Feb. For now, enjoy the rush of buyers going for the models listed above, creating a rocketing Cat A COE premium.

High COE prices seen driving small bus operators out of business

With the Certificate of Entitlement (COE) premiums for commercial vehicles reaching a new high on Wednesday, industry players say this is driving some small bus operators out of business.

And this may lead to a significant drop in the supply of school buses in the next few years.

In the latest COE bidding exercise, the premiums for commercial vehicles rose above S$71,000.

According to the Singapore School Transport Association, the COEs for some 1,000 school buses would be expiring in 2017.

That is because many school bus operators bought new fleets of vehicles or renewed their COEs when premiums plunged to as low as S$87 in 2007.

The association says if premiums continue to rise, it may be difficult for "single school bus operators" to cope, as they already face expensive oil prices and high insurance costs.

And with the Education Ministry's plans to make all primary schools single-session in 2016, this would mean the number of school buses would have to increase by 50 per cent by then -- causing a further strain on operators.

Wong Ann Lin, the chairman of the Singapore School Transport Association, thus suggests pulling school buses out of the commercial vehicles category in the COE bidding system.

SOURCE

Record high for the commercial vehicle category COE is definitely not doing any good for the business owners. Such costs will either be pushed to the consumers resulting in inflation, or the business will simply go bust, especially with small transport operators in this case. Removing the need to bid for COE is not exactly a solution either as can be seen with what was done with the taxis in Cat A.

It is a great headache for everyone.

Loan curbs for used cars to stay for now: MAS

 It seems like the loan curbs for used cars are here to stay -- at least for awhile.

Despite representations from used car dealers, the Monetary Authority of Singapore (MAS) said on Wednesday that the financing restrictions remain relevant as it encourages financial prudence among consumers and exerts a moderating influence on COE prices.

Under current rules that took effect in late February, used-car buyers can borrow only up to 60 per cent of the car's purchase price, with the maximum period of the loan capped at five years.

The Singapore Vehicle Traders Association met MAS on Tuesday to call for a review of the curbs.

The association said many dealers are suffering, with business dropping by at least 50 per cent.

It is proposing that buyers be allowed to borrow up to 80 per cent of the purchase price, and for the loan to be serviced for up to eight years.

MAS said in a statement on Wednesday that it appreciates the feedback, emphasising that the financing restrictions are not permanent.

It also added that it will continue to monitor the situation and review the calibration of the restrictions in line with market conditions.

SOURCE

Second hand car dealers will have to rough it out under the loan curb conditions, but the severity of the situation seems to be exaggerated as we all know how these dealers work. It will be good that the rogues close down for good.

Racing on AYE

Amazing stuff, when such a big group of highly tuned cars taking the expressway like a racing track. The red Honda Civic has got great balls and skills to have made that lane cutting maneuver.

HOWEVER, this is illegal. No matter how skillful you are, the rules of the road have to be obeyed at all times. By racing illegally on public roads, you're endangering yourself and every other road users' lives. Such actions must be condemn and the traffic police have to clamp down these racers.

How sending a "Brian O'Conner" as an undercover?

COE prices end higher across all categories

The gap in prices narrowed between big and small car Certificates of Entitlement (COEs) on Wednesday in the latest bidding exercise, as premiums rose across the board.

Wednesday's bidding is the first since an 8-per cent increase in COE quotas for the coming six months kicked in.

Premium for small cars went up by S$1,567 to S$75,556.

The COE price for big cars rose by S$1,211 to close at S$77,600.

The open category premium also increased S$1,187 to hit S$77,989.

The COE price for commercial vehicles saw the biggest jump of S$3,215 to reach S$68,251.

Motorcycle COE price went up by S$80 to end at S$1,792.

Car dealers Channel NewsAsia spoke with were not surprised by the price increases, and expect premiums to hover around this level in the months ahead.

Raymond Tang, honorary secretary of Singapore Vehicle Traders Association, said: "It's expected that (the prices in) all categories should be up, because the thing is that 8 per cent increase for the next six months is not enough to supply. COE of all categories have been suddenly moving up tremendously because of the demand for the new cars and that's why I think that it will still be going up."

SOURCE

The demand for new cars is not letting down. It makes one wonder where did all these people come from huh? Having to afford a 40% downpayment in cash at least and financing the loan within 5 years.

Racing in KPE tunnel - Hyundai & Merc

What a close shave, looking like a scene out of the Hollywood movies. Great recovery by the Hyundai by the way. Good job in capturing these actions, the traffic police can better nab these reckless drivers with such an evidence.

More COEs to be made available from August 2013 to January 2014

More Certificates of Entitlement (COEs) will be available during the six-month period from August this year to January 2014.

The Land Transport Authority (LTA) said that it has set the quota at 20,825.

This is 1,562 more than the 19,263 made available from February to July this year.

For small cars, 728 COEs will be made available every month, up from 667 in the previous six-month period.

For big cars, the quota is 746 per month, up from 605.

The open category will have a monthly quota of 522, up from 476 in the previous six-month period.

For goods, vehicles and buses, 514 COEs will be available, up from 451.

The only category that will have fewer COEs is motorcycles. There will be 961, down from 1,012 in the previous six-month period.

On a monthly basis for all categories, 3,471 will be made available, compared with the previous quota of 3,211.

Bidding under the new quota will start with the August 2013 First Open Bidding Exercise.

The COE quota consists of several components:

• 0.5 per cent vehicle growth based on the vehicle population as at 31 December 2012
• Replacement COEs for vehicles de-registered between January and June 2013
• Adjustments for change in taxi population, expired COEs and over-projections of vehicle de-registrations in 2008/2009

SOURCE

A pretty small increase for the next 6months. I reckon this will not make much of a difference in the coming COE bidding prices. Demand for cars is still very high.

Hit & Run Lexus SGD5233H

It is a very serious offence to hit & run from an accident in Singapore. This accident further emphasize the importance and a need to install a in-car DVR to prevent the culprit from running away. Hopefully the driver of the video poster is alright and will get justice served.

Certificate of Entitlement (COE) prices rose across the board for all categories.

In the latest bidding exercise, the COE price for the open category experienced the biggest jump -- rising by S$7,001 to hit S$83,001.

The next biggest jump was in the big cars category, with premiums going up by S$6,751 to S$81,751.

The premium for small cars went up S$2,602 to S$69,903.

COE prices for commercial vehicles rose S$1,012 to hit S$59,001.

As for motorcycles, the COE price went up by S$11 to reach S$1,712.

From next month, the government will start imposing registration surcharges on cars with high carbon emissions under the new Carbon Emissions-Based Vehicle Scheme (CEVS).

Buyers of such cars will have to cough up between S$5,000 and S$20,000.

Motor traders said car buyers who wish to avoid the penalties are driving up COE prices in the latest bidding round.

Neo Tiam Ting, president of the Singapore Vehicle Traders Association, said: "The CEVS come in not only for Category B vehicles but for all vehicles, but Cat B vehicles will be affected more. Those in Cat B, those with high-capacity cars will be affected more, that's why the COE goes up more than A."

Motor traders said higher prices for big cars are also due to the perception that authorities will be fine-tuning the categorisation of COEs to further segregate higher-end models from cheaper ones.

Eddie Loo, managing director of CarTimes Automobile, said: "After the re-categorisation, I think it will put much more pressure on Cat B. So I think for the luxury cars, premiums will still be going up. Before they reach S$100,000, I think it is better to go into the market first."

The public has until July 7 to give their suggestions on ways to refine the COE system.

SOURCE

New rulings are forcing everyone to jump into the market now causing a relatively huge jump in premiums across the board. The Cat B buyers will be experiencing very high premiums until the rulings are finally in place. For now, let the figures rise.