Wednesday, October 23, 2013

COE bidding prices dropped

COE bidding prices dropped. COE new bidding outcome is welcomed by drivers because the prices are decreasing this time. COE means Certificate of Entitlement. If you want to own a car, then you have to pay COE prices. This is the measure to control the numbers of cars in Singapore. You have to pay extra money COE prices. 
The COE price for small cars (1600cc and below) is now $76,889, which is over $8,000 lower than the previous price  on 9 October.  For big cars (1600cc) is $87,910, which is over $5,590 lower than the previous result. Purchasers of goods vehicles and buses have to pay $68,002, which is over $8,000 lesser than the previous price. It is $92,289 for vehicles in the open category, which is also lower than the previous result of $93,889. COE for motorcycles is $1,804, lower than the previous bidding result of $1,961. A total of 2,392 bids were received but only 1,769 were successful. This is lower than the previous 2,629 bids received in the previous exercise, where 1,760 were successful.Following sharp rises in the last few bidding exercises, Certificate of Entitlement (COE) premiums fell across the board at the end of the latest exercise yesterday, catching industry players by surprise.
Premiums for Category B and E had crossed the S$90,000-mark in the previous bidding exercise, following the Land Transport Authority’s (LTA) move last month to implement engine power caps on top of the current restrictions on engine capacities for smaller cars starting next February.
 However, bidding appeared to be conducted more cautiously in yesterday’s exercise, with prices starting to rise only after 3.30pm. Premiums in Category A (1,600cc and below) and B (1,601cc and above) hovered in the S$60,000 range before jumping steeply in the minutes before the exercise closed at 4pm.
COE bidding prices dropped means drives have money on hand. They are laughing of course.
Transport Minister Lui Tuck Yew had said that the Government has no plans to introduce additional cooling measures on COE prices “in the foreseeable future”, noting that despite recent increases, premiums “generally stayed below their peak level prior to the introduction of the restrictions” by the Monetary Authority of Singapore in February.
Motor traders attributed yesterday’s dive in premiums to lacklustre sales in the past two weeks, as well as uncertainty in the economy brought on by the partial US government shutdown.
Singapore Vehicle Traders Association’s Honorary Secretary Raymond Tang said the premiums for commercial vehicles likely tempered as “buyers may have found that a S$76,000 COE is too overpriced”.
Mr Ron Lim, General Manager of Nissan Agent Tan Chong Motor, had been expecting premiums to fall but was surprised by the “swiftness and magnitude of the correction”.
Managing Director of Car Times Automobile Eddie Loo said customers were probably “put off by the S$90,000 COE premiums”. However, he felt that the slump could be a “one-off knee-jerk reaction” and customers, lured by lower prices, would likely return. “Also, the competition among distributors will start in December, when everyone will be fighting to meet their sales quotas,” he added.
Both dealers also noted that premiums for big cars could increase in the coming exercises, with luxury car distributors launching new models such as the new Mercedes S-Class.
Said Mr Lim: “For buyers in that segment, money is not a problem. They probably just want the car fast before Chinese New Year, so if dealers can secure the COE premiums fast, they can fulfil their deliveries.” COE bidding prices dropped the good news for drivers indeed.

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