Insurance Agency Singapore | Commercial Insurance and Personal Insurance

Another piece of good news for motor drivers! LTA has announced there will be an increase in the no. of COE quota for the months of May June July, which is 41% more than the Feb-March-April period. During the first quarter we have seen price fluctuates, where prices drop during the introduction of the increment, only to rise back up after the government announced changes to the revised CEVS rebate that will kick start in 1 July 2015.  

Looking at the chart from Straits times papers dated  16/04/15, the monthly quota for the CAT A & B for the May-June-July period are 2853 and 1856, up from period of 1973 and 1444 respectively. Looks like its time to head down to the  motor show room again to enquire more on the pricing. Most car owners will aim to get one before 1 July, taking advantage of the CEVS rebate before it change.

Lets not miss out this window opportunity again.   

*Source and data from LTA & The Straits Times

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.  

 

Data from OneMotoring, LTA

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