COE bonuses for large cars and drop in the Open category

SINGAPORE – Certificate of Eligibility (COE) premiums for large cars and the Open category ended lower in the latest bidding exercise which closed on Wednesday (August 3).

For cars with engines over 1,600cc or 130hp and all-electric vehicles (EVs) over 110 kilowatts of power, the COE price is $107,001, down 2.7% from $110,003.

Open class COEs, which can be used to register any type of vehicle other than motorcycles, ended at $113,000, down 0.9% from the record high of $114,001.

Bounties for the other three types of COE have increased.

Premium for cars with engines up to 1,600cc and 130hp and electric vehicles with power up to 110kW increased from $78,899 to $80,000, an increase of 1.4% .

For commercial vehicles, the COE premium increased by 2.2%, from $54,889 to $56,089.

Motorcycle COE premium increased by $90 from $10,910 to $11,000.

This is the first bidding exercise under a revised counting methodology for COEs aimed at reducing supply fluctuations from quarter to quarter.

The new method is based on 50% of the number of vehicles taken off the road in the previous six months instead of the full three-month figure.

COE’s supply for the current three-month period, which applies from August to October, is 11.5% lower than the previous three-month period under the new method. The reduction would have been more severe, at 21.4%, under the old method, according to the Land Transport Authority.

A car dealership of a mainstream car brand said showrooms were empty, with few customers entering.

He attributed the high premiums and demand for COEs to commercial buyers like leasing companies expanding their fleets.

There were fewer bids received in the car categories than in the two previous tenders in July, with 1,301 this round compared to 1,536 and 1,595 last month, supporting the dealer’s point about lackluster sales.