COE: Reduced quota of goods vehicles and buses pushes Cat C COE up

By COE SG charts

COE bidding 2nd oct

There were slight changes in COE prices in most other categories: Premiums for small cars (up to 1,600cc and 97kW) went up from S$63,880 to S$63,990, while premiums for the Open Category — which can be used for any vehicle type but end up being used mainly for big cars — inched up to S$72,201, from S$$72,003.

COE prices for big cars (above 1,600cc and 97kW) dipped from S$72,180 to S$72,002.

There was a significant drop in motorcycle premiums, which had risen for seven consecutive bidding exercises since July. In the latest exercise, they fell 8.1 per cent to S$4,412.

Premiums for Category C (goods vehicles and buses) rose 6.3 per cent to S$61,000, from S$57,389 at the last bidding exercise two weeks ago. Seeing its the largest jump to $61,000. This is largely due to Land Transport Authority’s plans to cut Category C quota for the next three months.

Category C price hit a record-high of $76,310 in October 2013, so there might be room for Category C prices to increase further. High Category C prices may see businesses transferring the costs to consumers, and place a strain on Small – Medium Enterprises (SMEs), such as school bus operators.

The price difference between Category B luxury cars and Category C have narrowed. Thursday’s results showed that the price difference is now a mere $11,002, Category C being 84% of the price of Category B. At the time of the Category C record high last year on 9 Oct 2013, the price difference was $17,190,  Category C being 81% of the price of Category B.
Business owners are currently under a lot of pressure as they require the vehicles for business operations. Eventually, they may pass on the costs to consumers, resulting in inflation.

Business owners should not be paying for LTA’s decision to give generous quotas for Category B luxury cars, while keeping the quota for Category C low.