COE and Car Prices

[Musicwhiz]

From CNA. Wow.

COE prices for cars rise sharply
Updated 04:41 PM Aug 08, 2012

SINGAPORE - Certificate of Entitlement (COE) premiums rose across the board at the end of the latest bidding exercise today.

For Category A (Cars 1,600cc and below), premiums rose 7 per cent, or S$4845, to S$73,501, compared with S$68,656 in the previous bidding exercise.

COEs for Category B (Cars 1,601cc and above) now costs S$94,502 each, a 4 per cent increase, or S$4,001, compared with S$90,501 in the previous bidding exercise.

For Category C (Goods vehicles and buses), the COE is now S$57,001, compared with S$55,805. This is an increase of 2 per cent, or S$1,196.

For Category D (motorcycles), the COE premium is S$2,081, compared with S$1,859. This is an increase of 12 per cent, or S$222.

In Category E (open), premiums closed at S$95,034, compared with S$92,700. This is an increase of 3 per cent, or S$2,334.

CHANNEL NEWSASIA

[Musicwhiz]

Geee. How much is an entry level car going to cost?

*For full article, please refer to the website.

The Straits Times
www.straitstimes.com
Published on Aug 09, 2012
COE prices for smaller cars hit new high of $73,501

By christopher tan Senior Correspondent

THE removal of taxis from certificate of entitlement (COE) bidding has not prevented a price rise in the category they used to vie for.

The premium for Category A - for cars up to 1,600cc - yesterday hit a new high of $73,501, up 7.1 per cent.

That has squashed the hopes of car buyers for a lower premium to bring down the price of budget models that has hovered around $120,000.

Across the board, COE prices also ended higher in the latest tender, largely on the back of a smaller quota.

The COE supply in the 1,600cc category bore the sharpest decline of close to 40 per cent for the August-January period, as far fewer cars were scrapped in the preceding six months.

The supply of COEs - used to control the number of vehicles - is largely tied to the number taken off the road.

Singapore Vehicle Traders Association secretary Raymond Tang said that even if taxis had not been taken out in a move announced two weeks ago, the Category A price would not have changed much.

The main reasons for the spike, he added, are the reduction in supply and the strong presence of premium brands.

"Taxi companies would not have come in at these prices," he said.

He noted that sellers of cars like the popular Mercedes-Benz C180 Kompressor - which is a Category A car - can bid up to $80,000 for a COE. "They have the profit margin."

Meanwhile, the premium for Category B - for cars above 1,600cc - ended 4.4 per cent higher at $94,502, inching closer to the all-time high of $110,000 in 1994.

Open category COEs, which can be used for any vehicle type but ends up mainly for larger cars, rose 2.5 per cent to hit $95,034.
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[CityFarmer]

Geee. How much is an entry level car going to cost?

It should be above S$120k. I remember Nissan entry level car cost $70k when COE is around $15K, so it is reasonable to assume it cost above $120K

$120k capital, with return of 10% annually, compounded in 10 years is $311K. Wow, what a opportunity cost!

[Musicwhiz]

Article was taken from Asiaone website.

http://motoring.asiaone.com/Motoring/New...64419.html

Thu, Aug 09, 2012
The Business Times

Small car COEs rocket to new high of $73,501
Premiums rise across the board into 'unchartered territory'
Nisha Ramchandani

Certificate of Entitlement (COE) premiums ended higher across the board in the latest bidding exercise, with the COE premium for small cars shooting up more than expected to hit a brand new record of $73,501, an increase of $4,845 from the last round of bidding.

Meanwhile, COEs for big cars or cars above 1,600 cc (Category B) hit $94,502, up $4,001 from $90,501, while the COE for goods vehicles and buses came in at $57,001, edging up $1,196 from $55,805.

For Category D (motorcycles), the COE premium registered $2,081, rising $222 from $1,859. In Category E or the open category, premiums climbed $2,334 to $95,034, gaining three per cent.

This is the first round of bidding since the Land Transport Authority announced last month that taxis will be taken out of the COE bidding process from August this year, with taxi operators now only needing to pay the prevailing quota premium (PQP). The COE for taxis will be taken out of Cat E or the open category instead of Cat A. Previously, taxi companies looking to boost their fleet size would bid aggressively for Cat A COEs, often driving up the prices of COE premiums.

While car dealers say the rise in Cat A (cars 1,600cc and below) prices in the latest bidding exercise wasn't a total shock, the further increase from the high registered in the last round of bidding in July did come as a surprise.

This is "unchartered territory", said Ron Lim, general manager of Tan Chong Motor Sales, pointing to the steep cut in Cat A quotas. "The big question is how far (up) the premium will go for Cat A?"

Under the current six-month COE quota - from August 2012 to January 2013 - the number of available Cat A COEs is 36.6 per cent lower compared to the previous six-month period, February to July 2012.

Factors contributing to the steep rise in Cat A premiums at yesterday's close - which comes on the heels of a $9,235 rise to $68,656 in July's second bidding exercise - include the significant decline in quota numbers, the backlog of unsuccessful bids from the previous round as well as the three week long collection period as opposed to two weeks.

There is also a global trend of car manufacturers downsizing engine capacity in the interest of sustainability and fuel consumption so there are increasingly more small cars on the market, highlighted Zeno Kerschbaumer, managing director of Volkswagen Group Singapore.

"It will take some time for the market to adjust (to the cut in Cat A quotas)," said Dr Kerschbaumer, who expects COE premiums to continue rising, though possibly at a slower pace.

"Customers are telling us they will keep their cars until the COE expires," Dr Kerschbaumer added.

Although Cat A is typically used for mass market cars, Mr Lim notes that the dynamics may change as luxury car buyers downgrade to Cat A.

"(But) will we see a strong enough migration to sustain the premium?" he questioned.

And while taxi operators were excluded from this round of bidding, car dealers were not expecting this to have a significant impact on COE prices for Cat A since the quota cut was the main culprit in the price hike.

Still, if taxis had been included in the bidding process, premiums might have emerged even higher, Dr Kerschbaumer reckons.

This article was first published in The Business Times.

[Musicwhiz]

*For the full article, please visit the website.

The Straits Times
www.straitstimes.com
Published on Aug 24, 2012
Car COE prices drop, but premium for goods vehicles hits new high

AFTER a seemingly relentless northward trek in recent months, certificate of entitlement (COE) prices have staged a dramatic correction.

The premiums in all but one category ended lower at the close of the latest tender yesterday.

The lone category which ended higher was that for commercial vehicles, which closed 4.1 per cent higher at $59,334. This is a new high which industry players said was fuelled by infrastructural projects across the island.

Mr Michael Wong, the general manager of Isuzu truck agent Triangle Auto, said concrete mixers are the highest in demand.

Elsewhere, COEs tumbled. The premium for cars up to 1,600cc, which reached a record two weeks ago, took the biggest fall. It ended 9 per cent lower at $66,889.

COEs for cars above 1,600cc finished 6.9 per cent lower at $88,002.

Open COEs, which can be used for any vehicle type but end up being used mainly for cars, slipped by 1.1 per cent to settle at $93,990.

While these prices are lower than those in the previous tender two weeks ago, they remain among the highest since the start of the COE system 22 years ago.

Since 1990, motorists have had to pay for a COE before they can register a new vehicle. Motorcycles are not spared.

Yesterday, the premium for two-wheelers ended 3.3 per cent lower at $2,013.

The price correction was not entirely unexpected, as motor traders said business had slowed to a crawl since last fortnight's record or near-record premiums.
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[Musicwhiz]

Why is a car a necessity? As stated by Mr. Lionel Ng. It seems crowds are back and lapping up the (sky)-high prices, yet again!

*For full article, please visit the website.

The Straits Times
www.straitstimes.com
Published on Aug 27, 2012
Crowds back at car showrooms
Drop in COE premiums helps boost sales over the weekend

By Chia Yan Min

CERTIFICATE of Entitlement (COE) premiums fell for the first time in several months, drawing buyers back to car showrooms.

Car dealers reported that sales last weekend were 5 to 20 per cent higher than on previous weekends this month. Indeed, at least one dealer reported an increase of 50 per cent.

Most declined to be named, citing competition issues. They agreed the increase is encouraging, but said it is too early to tell if sales will stay on an upswing.

COEs are used by the Government to control the annual vehicular growth rate.

Recently, premiums have hit record highs thanks to a sharp fall in the COE quota, causing car sales to moderate. COE supply is tied largely to the number of vehicles taken off the road.

At the close of the latest tender last Thursday, COE premiums in all categories except commercial vehicles ended lower for the first time in months. However, current prices are still among the highest seen since the start of the COE system 22 years ago.

A spokesman for Komoco Motors, the distributor for Hyundai, said that despite the fall in premiums, "there is still some resistance from prospective customers... sales have been hovering at a low level for a long time".

He added: "Though any fall in prices is encouraging to them, people are probably waiting for further drops... many have been waiting for a long time and probably don't mind waiting longer."

At Tan Chong Motor, the distributor for Nissan, Mr Ron Lim, the general manager of sales and marketing, noted: "The decline in COE premiums is significant in absolute terms, but as a percentage of the total, given the high premiums, it's only about 10 per cent - not a very large drop."

When The Straits Times visited a few car showrooms yesterday, buyers were indeed jumping on the lower premiums.

Finance manager Lionel Ng, 58, and his wife Grace Ng, 53, a homemaker, own a multi-purpose vehicle which will be 10 years old in October.

They have been on the hunt for a new car for the past year.

Motor vehicles that are more than 10 years old become "time expired" - they must have their COE renewed or be de-registered and scrapped.

Yesterday, the Ngs took advantage of the lower COEs to purchase a Toyota Altis, which will replace their current car.

Mr Ng said: "The COE is still very expensive but we cannot wait anymore - I feel a car is a necessity in Singapore, but right now, it's priced like a luxury item."

Ms Evelyn Tan, 36, who is self-employed, said the lower COE was one of the factors she considered before deciding to upgrade her vehicle. Yesterday, she traded in her three-year-old Toyota Vios for a Mercedes C-Class.

She said: "With the trade-in and lower COE, I'm getting a very good deal on my new car."
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[Musicwhiz]

COE prices end mostly lower
By Dylan Loh | Posted: 03 October 2012 1623 hrs

Link: http://www.channelnewsasia.com/stories/s...41/1/.html

SINGAPORE: COE premiums closed mostly lower at the close of the bidding exercise on Wednesday.

The COE price for small cars (1,600cc and below) rose S$6,000 to S$69,000.

That of big cars fell S$8,499 to S$80,001.

For goods vehicles and buses, the premium fell S$1,808 to S$56,001.

Motorcycles COE meanwhile rose S$60 to S$1,912.

The premium for the Open Category fell S$3,101 to S$86,889.

Raymond Tang, honorary secretary of the Singapore Vehicle Traders Association, said the rise in small cars COE could be because luxury carmakers are introducing more small car models into the market, driving demand.

- CNA/ir

[Musicwhiz]

http://www.todayonline.com/Singapore/EDC...g-exercise

COE premiums rise in latest bidding exercise
by Sumita Sreedharan

Updated 04:28 PM Oct 17, 2012

SINGAPORE - Certificate of Entitlement (COE) premiums for vehicles rose across the board at the end of the latest bidding exercise today.

The category which registered the largest jump in premiums was Category B for cars that are 1,601cc and above, where the COE premium closed 7.2 per cent higher at S$85,801 compared with S$80,001 in the previous bidding exercise.

The COE premium for small cars (1,600cc and below) rose by 2.9 per cent from S$69,000 to S$71,001.

In the Open category, where COEs can be used for any vehicle type, the premium also rose by 0.13 per cent to S$87,000.

The COE premium for commercial vehicles rose by 3.37 per cent to S$57,889, while the premium for two-wheelers increased by 0.42 per cent to S$1,920.

[Musicwhiz]

The Straits Times
www.straitstimes.com
Published on Nov 08, 2012
COE premium for small cars hits new high

DESPITE motor traders complaining of business slowing to a crawl, certificate of entitlement (COE) prices rose across the board at the latest tender yesterday.

The COE price for cars up to 1,600cc climbed 8.7 per cent to close at a new record of $77,201, taking the industry by surprise. The premium for cars above 1,600cc ended 7.7 per cent higher at $92,400. Open COE premiums rose by 5.9 per cent to $92,100.

The commercial vehicle premium rose 2.1 per cent to $59,111, while the motorcycle premium was 2 per cent higher at $1,959.

Motor traders attributed the higher prices to brisk sales by Mercedes-Benz and BMW, and a longer break between the previous tender and yesterday.

Usually, the gap is two weeks, but because some months are longer, it can sometimes be three weeks. A longer break means motor companies have more time to build up an order bank, and a bigger order bank means more bids.

But Mr Ron Lim, general manager of Nissan agent Tan Chong Motor, noted that the average number of bids per day over the three weeks was smaller.

"On a daily basis, there were 30 per cent fewer bids," he said, adding that that indicated sales had in fact slowed down.

He said, however, that bids were more "aggressive", as agents sought to fulfil their targets as the year draws to an end. Also, some agents are clearing stock before the launch of new models.

With the latest premiums, the price of an entry-level Thai-made Japanese subcompact starts at $130,000 - more than three times the tag just five years ago.

CHRISTOPHER TAN

[Musicwhiz]

Wonder who are the people still able to afford such exorbitant cars?

The Straits Times
www.straitstimes.com
Published on Nov 22, 2012
Two COE prices hit record high
Motor firms rush to meet year-end sales targets, beat shrinking supply

CERTIFICATE of entitlement (COE) prices hit not one but two records yesterday as motor companies rushed to deliver cars to meet year-end sales targets and ahead of yet another foreseeable shrinkage in quota supply.

The COE for cars up to 1,600cc inched upwards by 0.1 per cent to reach a record of $77,291.

The COE for cars above 1,600cc was 0.7 per cent higher, at $93,004.

An open COE, which can be used for any vehicle type but ends up mainly for bigger cars, finished 2.1 per cent higher at $93,990.

The commercial vehicle premium climbed 1.9 per cent higher to hit an all-time high of $60,235.

The motorcycle COE bucked the trend by ending 13.8 per cent lower at $1,689. This premium remained at $1 (undersubscribed) right up to the last minute before bidding ended at 4pm.

Industry watchers said the traditional year-end rush to meet sales targets fuelled bidding.

"The number of bids was actually lower. But bidding was definitely more aggressive," observed Mr Ron Lim, general manager of Nissan agent Tan Chong Motor.

As usual, the premium brands were deemed responsible for the most aggressive bids as they have the fattest profit margins. Buyers of such cars are also more able to absorb price increases.

Thus, luxury brands BMW and Mercedes-Benz are the No. 1 and No. 2 top sellers, respectively.

Mr Lim attributed the rise in the commercial vehicle premium to demand for heavy trucks - fuelled by a slew of infrastructural projects here.

The end of the Green Vehicle Rebate scheme on Dec 31 has also driven sellers to clear their stocks of powerful petrol-electric hybrids. Cars such as the Porsche Panamera Hybrid and Lexus LS600h qualify for a 40 per cent tax cut under the scheme, but will no longer have any breaks under a new carbon-based tax system that comes into effect in January.

CHRISTOPHER TAN