COE prices for cars fall by over 20% at start of 2024

Premium movements in future will depend on COE numbers for Feb-April, say dealers

- Lee Nian Tjoe

Certificate premiums of entitlement (COE) for the two car categories fell by more than 20 per cent at the first tender exercise of 2024 that closed on the afternoon of Jan 4.

The premium for Category A, which is meant for less powerful cars and electric vehicles (EVS), posted the bigger drop. At $65,010, it is 23.5 per cent lower than the $85,000 posted two weeks ago.

This puts it close to the levels seen in the first two months of 2022, when the premium was between $57,599 and $63,000.

Category B COEs, which are for more powerful cars and EVS, dropped by 22.7 per cent to $85,010 from $110,001 at the previous tender the first time the premium for this category of COES fell below the $100,000 mark since October 2022.

The price of Open category COES finished at $106,388, down 10.1 per cent from $118,388. This was slightly below the $107,889 posted at the first tender exercise in 2023, before premiums soared in subsequent exercises until the record high of $158,004 set in October.

Although such COES can be used to register any type of vehicle other than motorcycles, they are almost always used for bigger and more powerful cars.

Open category COEs are also transferable and motor traders typically secure them ahead of big events like the Singapore Motorshow, opening on Jan 11, so that cars sold at the event can be registered without having to wait for the next tender exercise.