Bigger (Cars) Not Always Better; Car COEs Down in July

3 Jul, 2019 • 3 min read
Bigger (Cars) Not Always Better; Car COEs Down in July


COE Premiums Fell Slightly in First Tender Exercise of July

Certificate of Entitlement (COE) premiums for cars (Cat A, B and E) fell 1.9% versus the last tender exercise.

Premiums for cars below 1,600cc or 130bhp (Cat A) rose 5.9% to $28,589.

Premiums for cars above 1,600cc or 130bhp (Cat B) fell 5.3% to $34,000.

For the “Open” Category (Cat E), which is typically used for bigger cars, premiums fell 6.3% to $36,901.

Bigger Not Better in COE Downcycles

In past COE downcycles, big car COEs tend to correct faster than small car COEs.

This has happened this bidding round, and we expect to see big car COEs fall faster than small car COEs.

COE Demand Near 4 Year Lows

The Quota for COEs (Cat A, B and E) this exercise was 2,951, similar to the last bidding exercise.

Meanwhile, bids received or demand (for the same categories), at 3,708 was also similar to the last exercise, near a 4 year low.

One explanation is car owners choosing to extend their COEs instead of buying a new car.

Aging cars = Higher maintenance costs

As cars age (especially due to COE renewals), maintenance becomes more important and more expensive.

With Steer, you can book car servicing and repairs at quality workshops - simple, hassle-free, and you can do it on the go.

Our newly introduced pick-up and drop-off service takes away the need for you to go to the workshop yourself. Click here to find out more.


Share this article



Book your next (and every) workshop appointment on Steer.

Find the best workshops near you, 24/7, online. The best part? Enjoy priority service and exclusive discounts.

Search Steer Search Steer



Popular

workshops around Singapore

Show more »