Last updated on February 9th, 2019 at 11:24 pm
Like many, my wife and I have had to adjust to a new schedule this year which involves sending her early to the MRT (hmm can they build an LRT for my neighbourhood too?) and dropping baby Isaac off at my mum’s place. I had just driven back home and I read that COE prices have dropped!
My car’s COE is due for renewal in 2 years time and I dread to calculate how much is needed when the time comes. While it is true that car is a “liability”, it has saved my family travelling time. With the car, my family and I travel out frequently and make road trips to Malaysia.
So how much has COE premiums fallen?
Priced at $45,000 for small cars, COE value is now officially at half its peak value! COE premiums for large cars have correctly less though.
This chart below, from http://coe.sgcharts.com, gives a view of prices all the way back to yr2002. For long periods of time, COE prices were actually quite comfortably under the $20,000 mark for small cars as shown in the yellow graph. The chart also shows the impending availability of COEs coming in the next 2 years as it moves in a 10year cycle. What I can conclude is that 2016-2018 should have a healthy supply of yearly COE quota coming onto the market.
No wonder prices are expected to depress further! Even Mr Koh Ching Hong, the managing director of Champion Motors, believes COE prices will stabilize at a lower level in the next few years. As quoted “I believe very strongly that COEs will stabilise at a lower (price) level,” he says. The main reason is that the COE supply is on an expansion path.” You may check full comment here. If may be a good idea to hold off a little while to get even lower COE prices!