COE is  Only  wOrth  S$1.00

SINGAPORE

Premiums for small and big cars fell by some $4,000 and $5,500 respectively, while the open category — whose COEs are often used for cars — saw a drop of nearly $6,000.

This was the biggest drop in premiums for most categories in about a year.

Motorcycles, however, saw a small premium increase of $32.

The turnaround did not surprise dealers like Kia Motors senior manager Chin Kee Min, who told MediaCorp: “We expected the market to correct itself because we thought that the last two bids were a little of an overreaction (to the cut in COE quotas).”

“In terms of sales, there was a huge drop, and that definitely affected the bids — most customers stayed away. Some are expecting a softening of the COE as well.”

Despite this correction, dealers do not expect customers to start rushing back to showrooms just yet — not until they are convinced that the higher premiums are here to stay.

Said Mr Chin: “Although premiums have dropped to a more rational level, some consumers are saying it is still $10,000 more than what it was in January.”

Prospective buyer Kelvin Wee said: “More than anything, people will have to get used to the idea of the new levels. We won’t go and buy a car just because it is $5,000 cheaper now.”

Motor traders expect COE prices to continue to fluctuate by a few thousand dollars over the next few rounds of bidding, and to eventually hover in the range of $30,000 to $40,000.