Certificate of entitlement (COE) premiums ended lower for cars and motorcycles at the latest tender on Wednesday (Oct 4) as buyers stayed away after prices rebounded two weeks ago.
The COE price for cars up to 1600cc and 130bhp finished 2.7 percent lower at $41,761. The premium for cars above 1600cc or 130bhp closed 2.2 percent lower at $48,109.
The premium for Open COE, which can be used for any vehicle except motorcycles but which ends up mostly for bigger cars, ended 0.02 percent lower at $49,000.
Motorcycle premium took the biggest plunge, falling by 8.9 percent to finish at $5010.
Commercial vehicle COE price, however, bucked the trend by ending 4.3 percent higher at $48,902.
Motor traders said fresh bookings at car showrooms had slowed considerably after price hikes following a rebound in premiums two weeks ago.
After car COEs plunged to as low as $36,001 in the first tender of September, there was a spike in demand. This caused premiums to bounce back in the previous tender.
Mr Ron Lim, general manager of Nissan agent Tan Chong Motors, said: “The market has softened after the huge jump in prices last month. There were very few new orders.”
He said dealers are still clearing a backlog of bookings made earlier last month. If not for the backlog, yesterday’s correction would have been bigger, especially now that taxi companies and private-hire operators have stopped ordering new vehicles, he added.
The number of bids for car COEs submitted (including Open) yesterday was 5323 – 15 percent fewer than two weeks ago.
Meanwhile, motor dealers are uncertain how a new emission-pegged taxation scheme starting next year will influence COE prices. This is because the exact impact on each model is still unclear.
Related story: Cat A COE premiums rise nearly 20 percent
Related story: Cat A COE premiums drop to seven-year low of $36,001
