COE premiums finally slip across the board

Certificate of Entitlement (COE) premiums have finally slipped across the board in the second round of bidding for April, following months of steady rises.

Recent high petrol prices, coupled with the announcement that COE supply is set to increase for Cat A and E come May 2022 might have encouraged new-car shoppers to delay their purchases in the past weeks.

Get data on past COE bidding exercises at our COE bidding results page.

Cat A COE – a fall of $4,297 this session

Premiums for Cat A, for cars up to 1,600cc in engine capacity and with an output of no more than 130bhp, finally fell this session by $4,297 (5.9 per cent), bringing an end to a 12-session long consecutive climb, and ending at $68,699 this session.

Premiums for the category now stand at 27.7 per cent above the 12-month trailing average, and are now at the 88th percentile of the premiums from the last 12 months.

The number of unsuccessful bids this round exceeded the available quota by 40 per cent, lower than the 12-month average of 45 per cent for the category.

Cat B COE – a sizable $8,387 slip this session

Premiums for Cat B, for larger cars with more than 130bhp or engine displacements larger than 1,600cc, also took a hit this session, building on the slip from the last bidding session by falling by $8,387 (8.5 per cent) this session to reach $90,002.

This slip in premiums for the category has brought the current price to 22.4 per cent above the 12-month trailing average. Premiums for the category now rest at the 82nd percentile of the 12-month average.

This total number of unsuccessful bids this round exceeded the quota available by 23 per cent. The 12-month average figure for this category is currently 42 per cent.

READ ALSO: COE supply to be increased: No $100k COEs after all?

Cat C COE – also finally taking a dive

Premiums for Cat C, for goods vehicles and buses, have slipped for the first time in 2022, dropping by $2,899 this session (5.3 per cent), to close at $52,002.

The number of unsuccessful bids this round exceeded the available quota by 138 per cent, far higher than the 12-month average for this category of 95 per cent.

Cat E COE – straying away from that $100,000 mark

Cat E, the open category, also saw a slip this session, dropping by $4,198 (4.2 per cent) this session, bringing the premium to $95,801.

This fall means current premiums for the category are now at 25.8 per cent above the 12-month trailing average, and at the 86th percentile of prices over the last 12 months.

The number of unsuccessful bids this round exceeded the available quota by 60 per cent. The 12-month average for this figure for the category is 66 per cent.

Prevailing Quota Premium

The Prevailing Quota Premium is the amount to be paid for COE renewal and is computed from the moving average of the previous three months of COE prices.

Those looking to renew the COE on their cars will thus have to pay the following prices for the respective months.

This article was first published in sgCarMart.