COE and Car Prices

[Musicwhiz]

Apr 21, 2011
Mixed results in latest COE bidding

CERTIFICATE of entitlement (COE) prices ended mixed in the latest tender as aggressive bids from taxi firms and brisk car sales over the weekend countered worries about production disruptions in Japan.

COE premiums for cars up to 1,600cc ended 1.8 per cent higher at $44,000, with strong last-minute bids from taxi firms. SMRT and Trans-Cab each put in bids of $45,000 to secure 30 and 90 COEs respectively.

COE premiums for cars above 1,600cc rose 3.3 per cent to close at $56,801 on the back of improved car sales.

Dealers selling bigger cars posted better bookings following three consecutive dips in COE prices. But prices for open COEs, which can be used for any vehicle type but are mainly used for bigger cars, slid by 1.9 per cent to finish at $56,001.

Mr Ron Lim, general manager of Nissan agent Tan Chong Motor, said this could mean the market still has a supply of open COEs, with some expiring soon.

Open COEs are transferable but must be used within three months. They are often secured by speculators who resell them at a profit. Open COEs expiring soon include those clinched at $62,000.

The biggest drop yesterday was posted in the commercial vehicle category. Prices dived 15.2 per cent to end at a 14-month low of $23,900.

Motor traders said this could be because some dealers are still facing uncertainty over supply in the coming months. The world's biggest vehicle maker, Toyota Motor, has resumed operations at all its plants in Japan, but they are running at half capacity as there is still a shortage of several components.

Mr Lim noted that there is also an expectation of more commercial vehicle COEs in the next six-monthly quota, starting in August. He said this was due to an unexpected surge in the number of older vans, trucks and lorries being scrapped.

In the first quarter, more than 1,800 such vehicles were deregistered, compared with fewer than 1,300 in the October to December period last year.

Motorcycle premiums ended 0.5 per cent higher at $2,502.

CHRISTOPHER TAN

[Musicwhiz]

Business Times - 06 May 2011

COE premiums stay flat

By SAMUEL EE

COE premiums for the first bidding exercise of May were largely flat, with most distributors saying that demand for cars remains steady.

Yesterday's tender, which closed on a Thursday instead of a Wednesday because of the public holiday on Monday, saw a certificate of entitlement in Category A - for cars below 1,600cc - climb $790 to $44,790.

But Cat B - for cars above 1,600cc - fell $790 to $56,011. Cat E - the open category - rose $489 to $56,490.

Elsewhere, Cat C - for goods vehicles - shed $2,011 to $21,889, while Cat D - for motorcycles - dipped $249 to $2,253.

One senior executive noticed that the number of Cat A bids was particularly strong.

'The bid amounts were also strong and it was not because of the taxi companies, which had a negligible presence,' he said.

He speculated that this was due to the entry of the luxury brands in this so-called small car category. More and more European makes are offering premium models with 1,600cc or lower engines, such as the Mercedes-Benz C180, Volvo V60 and S80, Peugeot RCZ and Audi A1, among others.

To back up his point, he said that the gap between the Cat A and B premiums is now smaller at slightly over $10,000, down from about $20,000 in late February and early March.

'With luxury models coming into Cat A, this category is getting crowded,' he said. 'It is no longer about small cars versus big cars. Maybe we need to re-think the concept of Cat A and Cat B.'

As for the Cat C premium, which has been falling for four straight tenders, he said that it could be because of uncertain supply of Japanese commercial vehicles.

According to him, Continental light commercial vehicles have become more expensive and hence less popular with buyers, so overall, this category is experiencing less demand.

As for election fever resulting in generally lower showroom traffic last weekend, he said: 'I think it was quieter during the May Day long weekend because many people had gone abroad.'

[Musicwhiz]

May 20, 2011
COE prices creep upwards
European makes push Category A premium up despite dip in bids
By Christopher Tan, Senior Correspondent

CERTIFICATE of entitlement (COE) premiums ended mostly higher in the latest tender yesterday, but the increases were relatively modest.

The COE price for cars of up to 1,600cc climbed 4.9 per cent to $46,989 - the highest since last December.

The increase is smaller for cars above 1,600cc, with the premium creeping up by 0.5 per cent to close at $56,300.

The open category COE, which can be used for any vehicle type but ends up mainly for cars, was 0.7 per cent higher at $56,889.

The premium for commercial vehicles posted the biggest increase of 5 per cent to finish at $22,989.

The motorcycle COE was the only one that bucked the trend, with the price dropping by 10.7 per cent to end at $2,013.

Motor traders said the results are within expectations, except for Category A (cars of up to 1,600cc and taxis).

Despite a 19 per cent dip in the number of bids, the premium rose by more than $2,000 to hit a five-month high.

Mr Ron Lim, general manager of Nissan agent Tan Chong Motor, reckons it could be the influx of European makes in the category.

Brands like Citroen, Peugeot, Volkswagen, Audi, Mercedes-Benz and Volvo now have models below 1,600cc, which are proving to be popular.

'The market in general hasn't been that strong. And the taxi companies were absent this round,' Mr Lim noted. 'Only the Continentals have the margin to push the price up by so much.'

In fact, observers said Mercedes' recent focus on its 1.6-litre C180 sedan could be one reason for the relatively flat pricing for Category B COE (cars above 1,600cc). Mercedes and BMW are traditional stalwarts in this category.

Others point to the impending launch of the new Hyundai Elantra. Hyundai agent Komoco started collecting pre-launch bookings last month and has garnered more than 100 orders - despite the relatively high prices.

The price of the 1.6-litre Elantra ranges from $84,999 to $91,999. Its closest rival, the Kia Cerato Forte sedan, is priced between $78,999 and $87,999.

The next tender is three weeks from now, longer than the usual two-week gap.

This could give car dealers more time to collect orders, and more orders would usually translate into higher bids.

christan@sph.com.sg

[Musicwhiz]

Wooo hooo! A simple small car like Latio now costs $100,000! Well done Singapore! Another for the record books - world's most expensive cars!

Jun 9, 2011
Big jump in Category A COE premiums
Mass market cars like Nissan Latio now cross $100,000 mark
By Christopher Tan

CERTIFICATE of entitlement (COE) prices rose sharply at the latest tender yesterday.

Motor traders said the rise was fuelled mainly by improved buying sentiment in recent weeks and concerns over another impending cut in the COE supply from August.

The premium for Category A COEs (cars up to 1,600cc) was $53,390 - a 13.6 per cent increase and just a whisker away from the all-time high of $56,600 in October 1994.

Similarly, COEs for Category B cars (above 1,600cc) rose by 11.9 per cent to reach $63,000, among the highest in the past six months.

The Open Category COEs, however, posted a relatively tame increase, rising by 9 per cent to $62,000. These COEs can be used for any vehicle type, but end up mainly for cars.

Tan Chong Motor general manager Ron Lim attributed the sharp increase in Category A COEs to stronger sales recorded by European premium cars, in particular the Mercedes-Benz C180.

'They are doing well, and they have the profit margin to bid high,' said Mr Lim, whose company sells Nissan vehicles.

With the COE supply down sharply this year, he said, it was only a matter of time that Category A certificates would breach the $50,000 mark.

'But we didn't expect it so soon,' he added. 'It looks like it will now head for the record.'

Mr Jimmy Lim, sales manager at Vantage Automotive, the agent for Ford and Peugeot, said the unusual three-week break between COE tenders and brisk sales at showrooms also contributed to the higher premiums.

Usually, the break is two weeks. A longer break means dealers have more time to collect orders, and more orders mean more aggressive bids.

Mr Lim said industry players are also bracing themselves for another cut in the supply of COEs, which is expected to come on the back of fewer vehicles being deregistered in recent months.

The supply of COEs, which are vehicle ownership entitlements that are auctioned twice monthly, is determined largely by the number of vehicles taken off the road. 'It is going to be another drastic cut, especially for Category A,' he said.

With the spike in COE premiums, prices of mass-market cars such as the Toyota Corolla Altis and Nissan Latio have now crossed the $100,000 mark.

Meanwhile, commercial vehicle and motorcycle premiums also chalked strong double-digit increases.

Commercial vehicle COEs rose by 26.2 per cent to $29,006, while motorcycle COEs rose by 23.7 per cent to $2,491 - both also among the highest in recent months.

christan@sph.com.sg

[Musicwhiz]

Everything's high - car prices, food prices + property prices. Welcome to sunny Singapore!

The Straits Times
Jun 23, 2011
COE prices still high

CERTIFICATES of Entitlement (COE) ended mixed in the latest tender yesterday, but three premiums out of five are now at their second highest this year.

COEs for cars up to 1,600cc and taxis ended 5.9 per cent lower at $50,244, while the premium for cars above 1,600cc rose by 7.5 per cent to $67,700. Those for commercial vehicles were 7.2 per cent higher at $31,089.

These rates are the second highest recorded this year, a sign that demand for vehicles is still healthy despite sky-high prices.

Open COEs, which can be used for any vehicle type but end up mainly for cars, climbed 5.6 per cent to hit $65,490 - the category's third-highest rate this year.

Motorcycle premiums slid by 8.1 per cent to $2,290.

COEs for cars up to 1,600cc and taxis would have fallen further if not for aggressive bids by Premier Taxis. It submitted 20 bids at $56,000 each at the last minute before the tender closed. This surprised many, as taxi operators usually do not bid much more than $40,000 for a COE.

Mr Lim Chong Boo, the cab company's managing director, said: 'I didn't realise we bid $56,000. I must go scold whoever put in those bids.'

Motor industry players were expecting COEs for cars up to 1,600cc to ease because of the category's sharp spike in the previous tender two weeks ago.

Even now, after the dip in COE price, bread-and-butter cars like the Toyota Corolla and Honda Jazz are priced around $100,000.

Meanwhile, the surge in premiums for cars above 1,600cc came as consumers continued turning to bigger and costlier cars on the back of lofty COEs. In the first five months of the year, the best seller was BMW. It registered 1,890 cars, beating runner-up Toyota - which sold 1,708 units - for the first time.

Mr Say Kwee Neng, managing director of BMW agent Performance Motors, said: 'We're coming to the end of the second quarter, and we just wanted to have a strong ending.'

CHRISTOPHER TAN

[WolfT]

Wow.. BMW sell more than toyota.What is e world coming to?
Yes, welcome to singapore!

[Musicwhiz]

Wow.. BMW sell more than toyota.What is e world coming to?
Yes, welcome to singapore!

I've stopped feeling surprised at the above observation for BMWs. These days when I sit in the bus or walk around City Hall area, I see BMWs literally zooming by every other minute!

But it does make me wonder what I need to do to achieve that level of wealth. Oh well, back to the grind and stop daydreaming haha!

[Musicwhiz]

So how much can a standard 1.6L Toyota Corolla cost? I think right now it's past $100,000 including COE. Let's see what kind of inflation will hit the car market.....gosh.

Channel NewsAsia
Car prices set to soar
By Wayne Chan | Posted: 26 June 2011 2159 hrs

SINGAPORE: The continued rise in the premiums for the certificates of entitlement (COE) over the past year has affected the car market, and with the expected tightening of COE quotas in the next quarter, dealers say prices may even go up further.

Car dealers Channel NewsAsia spoke with said several factors are behind the continued rise of COE prices.

Chief among them is a change in the COE quota system last year, where a new formula allows authorities to better manage the growth of the vehicle population, by removing yearly fluctuations in supply.

Under the new methodology, the Land Transport Authority (LTA) recycles the COE quota from the actual vehicle de-registrations in the most recent six-month period back into the system.

LTA said the scheme eliminates the need to make any corrections due to any under- or over-estimation.

Meanwhile, the entry of taxi companies and continental cars to the small car category is likely to drive COE prices higher.

Komoco Motors sales consultant Alvin Lim said: "Quite a lot of the taxi operators... have to come in and get the COE as well in order to put the taxi on the road.

"So for this reason, they actually have to... as high as possible in order to secure the COE."

Dealers said the higher prices are definitely driving customers away, with some turning to second-hand cars.

Singapore Vehicle Traders Association honorary secretary Raymond Tang said: "Singaporeans are considering going to the used car market... because the price (difference is quite big)".

If the rise in COE premiums continues, dealers said smaller distributors who cannot afford to bid high will be driven out of the market.

-CNA/wk

[isaac]

A Corolla Altis in early 2009 cost $50,988. The same model now costs $100,988. That's a 100% increase in just two years.

A Chery QQ in Singapore ($66,000) can buy a Jaguar XF 2.2L Diesel in the UK (£31,000-inclusive of 20% VAT) and still have S$4,000 left over.

[Musicwhiz]

A Chery QQ in Singapore ($66,000) can buy a Jaguar XF 2.2L Diesel in the UK (£31,000-inclusive of 20% VAT) and still have S$4,000 left over.

I don't know why but this statement of yours just tickled me and made me ROFL! If there was a "Like" button I would click it beside this sentence, haha.....