COE Results December 2016, 2nd Tender
December 2016, 2nd Tender
|
||||||||||||||||
|
||||||||||||||||
|
||||||||||||||||
|
Renew or not to renew your COE before 2017?
More motorists are definitely looking to renew their COEs instead of purchasing a new car in 2017 due to the economic uncertainty. This will result in COE prices to rise due to decline in a number of motorists deregistering their cars.
Total number of COE Renewals (2015 & 2016)
The above chart clearly shows more are renewing their COEs now. In 2016, one in four chose to renew their expiring COEs, this is more than double compared to previous year. The trend will most probably continue in 2017 even though vehicles in Singapore are much older in age compared to previous years. In 2015, the number of cars that are 7 to 10 years old made up of more than 50% of total car population (309,074 out of 602,311). Some might be waiting for COE premiums to fall below $40,000 but we think this is highly impossible in the short term.
The Monetary Authority of Singapore (MAS) might has eased car loan guidelines earlier this year but the down payment required for a new car is still fairly high for many people and renewing their COEs is their only choice. A good number of drivers have the choice to drive part-time for Uber and Grab which helps to lessen their financial burden to owning a car. Speed Credit offers very competitive loan interest rates for car owners looking to renew their COEs. Find out more where you should Buy new, used, or just renew.
COE Premiums (QP)
In the latest tender, there is a 17% increase of bids received compared to the 1st bidding exercise earlier this month. Certificates of entitlement (COE) ended higher at the latest tender today, with the exception of Cat C (Goods Vehicle & Bus).
Cat A (1600cc and below) premiums rise close to 4% to $49,751, Cat B (1600cc and above) premiums rise the most among all categories at 10% to $51,109. Cat E (open) premiums also increased, closed at $50,389. Cat C (Goods Vehicle & Bus) ended lower at $49,500, from $51,209.
Many potential car buyers are waiting till early next year to purchase a new car when they have more disposable income from their year-end bonuses. If you are considering to purchase a new car instead or renewing COE, visit Cars & Stars and find out more about our current car promotions (Honda Vezel for only $98,888 and many others).
Prevailing Quota Premiums (PQP)
What does the rising COE Premiums tell us about whether to renew COE? Prevailing Quota Premiums (PQP) is the moving average of the COE prices in the last 3 months. PQP in latest bidding remain stable despite the rising COE premiums in latest bidding exercise mostly due to low COE premiums in previous months.
If you have less than 3 months before your COE expires, consider to renew your COE with January PQP results. There is a room for PQP to fall a little, so for those whose COE is expiring later, please stay tuned to our website and find out what is the best option for you. We encourage current car owners with expiring COEs to visit www.speedcredit.com.sg/coe-renewal-loan/ and renew their COEs with us today.