COE prices for cars up sharply

SINGAPORE: Certificate of Entitlement (COE) premiums rose across the board at the end of the latest bidding exercise on Wednesday.

The sharpest increase was in Category A (cars 1,600cc and below and taxis). Here, the premium rose 15.5 per cent or S$9,235 to S$68,656.

This was followed by Category B (cars above 1,600cc), where the premium rose nearly 10 per cent or S$8,212 to S$90,501.

In the Open Category, where the COEs can be used for any vehicle type but which are used mostly for cars, the premium rose nearly 7 per cent or S$5,701 to hit S$92,700.

The COE prices for both commercial vehicles and motorcycles also moved up. The premium for commercial vehicles went up S$249 to S$55,805 while the premium for motorcycles increased S$99 to S$1,859.

This latest round of bidding will be the final exercise before the new quota numbers for the next six months (August to January 2013) take effect.

The Land Transport Authority announced on July 12 that there will be 3,226 COEs available per month in the next six months, which are 12.7 per cent fewer than the number for the last six months.

Motor dealers said the tightening of quota is likely to lead to higher car prices in the near term.

Ron Lim, GM, Tan Chong Motor Sales, said: "Take Category A for example. At S$68,000, this is a historical high... I suppose a lot of distributors would have to factor higher COE prices in their new pricing."

— CNA/cc