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PR Newswire
04-11-2010, 07:20 AM
Nov 4, 2010
Sales race pushes COE prices up
Traders say rush to meet annual targets, fears of another cut in quota fuel bidding
FOUR out of five certificate of entitlement (COE) premiums ended higher at the latest tender yesterday, as motor traders rushed to meet annual sales targets in the last two months of the year.
The COE price for cars up to 1,600cc climbed 4.9 per cent to end at $34,001. Observers said the category jumped by $2,000 in the last five minutes on the back of strong bids from a taxi company.
The COE premium for cars above 1,600cc hit a seven-month high of $45,501, up 2 per cent from two weeks ago.
The price for the open category COE, which can be used for any vehicle type but which is mainly used for cars, was 2.5 per cent higher at $46,001, another seven-month high.
The COE price for commercial vehicles ended at $31,006, up 1.6 per cent. The premium for motorcycles was an exception. It closed at $1,452, 14 per cent lower than its last price a fortnight ago.
Motor traders said the traditional year-end spurt to meet sales targets had fuelled bidding.
A number of new car launches in recent weeks had an effect as well.
Mr Chan Kee Min, senior manager at Cycle & Carriage Kia, said: 'Come the year end, there'll be the usual rush for numbers.'
There is also widespread anxiety over another imminent reduction in COE supply from February. Car dealers think the cut will be sharp.
Mr Ron Lim, general manager at Nissan agent Tan Chong Motors, noted that premiums 'usually peak one to two months before an actual cut'.
'As the year end draws nearer, the expectation of a quota cut in February becomes starker,' he added.
COE supply is fixed every six months; and supply is determined by the number of vehicles taken off the road - either scrapped or re-exported - in the immediate preceding six-month period.
This deregistration number has been falling noticeably in recent months. In September, total deregistrations dipped below 3,000 for the first time in almost a decade.
Looking ahead, motor traders expect COE premiums to continue trending upwards in the coming months, followed by car prices.
CHRISTOPHER TAN
Sales race pushes COE prices up
Traders say rush to meet annual targets, fears of another cut in quota fuel bidding
FOUR out of five certificate of entitlement (COE) premiums ended higher at the latest tender yesterday, as motor traders rushed to meet annual sales targets in the last two months of the year.
The COE price for cars up to 1,600cc climbed 4.9 per cent to end at $34,001. Observers said the category jumped by $2,000 in the last five minutes on the back of strong bids from a taxi company.
The COE premium for cars above 1,600cc hit a seven-month high of $45,501, up 2 per cent from two weeks ago.
The price for the open category COE, which can be used for any vehicle type but which is mainly used for cars, was 2.5 per cent higher at $46,001, another seven-month high.
The COE price for commercial vehicles ended at $31,006, up 1.6 per cent. The premium for motorcycles was an exception. It closed at $1,452, 14 per cent lower than its last price a fortnight ago.
Motor traders said the traditional year-end spurt to meet sales targets had fuelled bidding.
A number of new car launches in recent weeks had an effect as well.
Mr Chan Kee Min, senior manager at Cycle & Carriage Kia, said: 'Come the year end, there'll be the usual rush for numbers.'
There is also widespread anxiety over another imminent reduction in COE supply from February. Car dealers think the cut will be sharp.
Mr Ron Lim, general manager at Nissan agent Tan Chong Motors, noted that premiums 'usually peak one to two months before an actual cut'.
'As the year end draws nearer, the expectation of a quota cut in February becomes starker,' he added.
COE supply is fixed every six months; and supply is determined by the number of vehicles taken off the road - either scrapped or re-exported - in the immediate preceding six-month period.
This deregistration number has been falling noticeably in recent months. In September, total deregistrations dipped below 3,000 for the first time in almost a decade.
Looking ahead, motor traders expect COE premiums to continue trending upwards in the coming months, followed by car prices.
CHRISTOPHER TAN
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