The latest COE prices have been released today and here we take a look at it:
4th March 2015 17th Feb 2015
Cat A $ 61,410 $57,199
Cat B $68,668 $66,751
Cat C $56,501 $53,202
Cat D $5,501 $5,800
Cat E $70,500 $67,901
COE prices are on the rise again. There are several factors that resulted in the increase. Firstly, the last two COE bidding we have seen that prices have been dropping and fundamentals of economics will show that potential car buyers have started to take advantage of price drop by entering the market during this window.
Secondly, the recent SG budget has announced that the revised carbon emission-based vehicle schemes(CEVS) will kick-in in July 2015, and has urged many buyers to buy now rather than later (see straits times). CEVS scheme is meant to encourage buyers to purchase low carbon emission models and the new revised scheme is such that only cars with 135g or lower carbon emissions per km will be entitled to rebates ($5k-$30k), while those above 185g will have to incur a surcharge. This is compared to the previous 160g for rebates and 210g for surcharges. I am not sure which models qualify for rebates or surcharge before the change in scheme, but we can probably guess certain popular car models might end up incurring surcharge than rebates.
My previous analysis was based on simple understanding of economics, but there will be factors that will play a part in influencing the price. Maybe if you consider getting a hybrid car, or an electric one (not sure if there is such a model? but i do see car parks having certain lots for electric cars) you won’t be too bothered by the scheme. But no doubt this change has urged buyers to take action now, and that maybe my ideal wait for $50k and below COE price (CAT A) might not come true eventually. I have heard from a friend that his recent purchased of Toyota Estima (parallel import) cost around $150k, which was a drop compared to 2014 prices. Prices may not drop significantly now but they sure are a bit lower than before.
Time to head to the showroom and enquire more.