COE prices for cars increase as market anticipates a smaller quota

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Singapore Vehicle Traders Association president Michael Lim said dealers are likely rushing to bid for COEs now, as they anticipate a smaller supply in the quarter of May to July, compared with the current February-April period.

SINGAPORE - Certificate of Entitlement prices finished mostly higher in the latest tender, as the market anticipates a smaller supply of COEs in the upcoming quarter starting May .

COE prices for cars above 1,600cc or 130bhp ended at $39,401, a 6.6 per cent rise from $36,961 two weeks ago. The COE quota is revised on a quarterly basis and is determined largely by the number of vehicles deregistered in the preceding three months.Data from the Land Transport Authority , for example, show that there were around 4,690 cars above 1,600cc or 130bhp which were deregistered in January and February . In the same period a year ago , more than 5,480 of these cars were taken off the road.

Motor traders also say there is a higher demand for cars above 1,600cc or 130bhp , compared with those of smaller capacities and lower horsepower.

 

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