Longer bidding interval pushes up COE premiums; Cat A at all-time high
Categories A and B are oversubscribed by 43%, notes an industry observer
[SINGAPORE] Certificate of Entitlement (COE) premiums rose across the board for all categories of vehicles in the latest round of bidding on Wednesday (Sep 9), which automotive industry observers attributed primarily to the longer interval between tenders.
Particularly, Category A achieved a record high of S$133,009 in September’s first bidding exercise, up 3.5 per cent or S$4,508 for the group applicable to mainstream cars. This came after the category’s last record of S$129,000 in July.
Meanwhile, Category B, for larger or more powerful cars, rose 3.1 per cent or S$4,000 to S$135,001, and Category E, the open category, was up 2.1 per cent at S$137,890.
As Category E certificates can be used to register any vehicle type except motorcycles and transferable, they are mostly used for bigger cars and motor traders often secure them for the flexibility to register cars without waiting for the next tender exercise.
Adelene Tan, managing director of BYD distributor and dealer Vantage Automotive, said the three-week interval from the last tender – instead of the usual two weeks – would generally push up premiums.
She also noted that Categories A and B had more orders.
Raymond Ng, managing director for MG and IM distributor Eurokars EV, said both categories were 43 per cent oversubscribed.
Lee Hoe Lone, managing director of Premium Automobiles, said the premium increases were expected owing to the three-week break, and premiums will likely rise further with the impending reduction of electric-vehicle rebates to S$20,000 starting Jan 1, 2027, from S$30,000 now.
Vincent Ng, transformation consultant at EV Business Group, forecast that COE premiums will not ease until November as dealers are expected to push for sales ahead of the S$10,000 reduction – due to both the expiry of the EV early adoption incentive in 2027 and the lowering of the Vehicular Emissions Scheme rebate.
Both rebates are given when a new car is registered, offsetting the price for the consumer.
Eurokars’ Ng also commented that dealers often need to chase after COE to meet their year-end targets, clear their ageing stocks, and refresh their demonstrator cars.
Additionally, the Land Transport Authority’s (LTA) review of the COE re-categorisation might have nudged consumers to make certain decisions.
“On the demand side, approximately one in five cars are within 24 months of the end of their 10-year COE,” he said.
Premium for the commercial vehicle category, or Category C, was 3.4 per cent higher at S$93,101, in spite of incentives for electric heavy vehicles with a maximum laden weight of 3,500 to 7,000 kg having been reduced to S$15,000 from S$40,000 after the last bidding.
The Category D COE premium, for motorcycles, leapt 11.1 per cent or S$1,255 to S$12,556.
An LTA spokesperson said: “We urge buyers and dealers to be prudent in bidding for COEs.”
