Not holding back, here we go! We are going into good times for those with COE renewals upcoming! The prices are expected to fall in all categories, from Cat A to C, by four figure sums, with the greatest drop in Cat B. So those whose cars expire in August or later, time to cheer, you are going to save a four figure sum on your COE renewal!
This is our prediction for the three categories for the month of August COE renewal:
PQP Cat A Down, $29,351
Down by $1,161 compared to Cat A PQP of the month of July 2019.
This is the first decline in COE renewal prices for Cat A after four straight months of COE PQP increase from March till July which went from $25,525 up to $30,512 in this current month of July. This decline is significant and will bring the Cat A down by a four figure sum, but would it have been worth to renew in March if your car expires in August 2019? Looks like the answer is yes. Ah, the benefit of perfect hindsight.
Quite a number of our customers benefited from earlier renewals. We were not 100% sure looking into the future when we were back in March, but we told them “looks likely to rise” and they went for the renewal then, to their benefit.
PQP Cat B Down, $38,918
Down by $3,967 compared to Cat B PQP of the month of July 2019.
There was a sharper rising streak for Cat B, which had gone upwards from January $31,335 to June $43,007, but the trend broke in July with a small decrease of $122. However, this month we continue the decline by a whopping projected $3,967! This comes courtesy of the April second COE bid price of $48,000 falling out of the averaging calculation for the month of August PQP . For those who are wondering, the PQP is made up of the average of only the past three months COE bids.
Owners of large cars, keep your fingers crossed that our prediction comes true!
PQP Cat C Down, $26,156
$1,604 down compared to Cat C PQP of the month of July 2019.
We had advised last month that for those who have expiry for commercial vehicles that come after the month of June could wait for July and August results and we continue to say that, even into the month of September, this should remain on the down trend, but slight, not a big drop like we expect to see for Cat B in the month of August.
What Else Should We Look Out For To Know Where COE Renewal Price Trend Is Going?
With the seasonal low spell for car sales coming up – the seventh month Hungry Ghost period – whether you believe in ghosts or not, that usually spells low sales for those who would rather avoid making major purchases like house or car at this time. This yearly phenomena will probably have an effect on the PQP COE renewal prices from September onward, for all categories of vehicles, but more so for Cat A and Cat B.
So while the lower COEs may have resulted in more showroom visitors, they may still hold their purchases till later, hoping for a car at lower COE. With reports of a technical recession coming this period till December and the uncertainties for jobs in certain industries, the prudent buyer would wait. There would still be buyers who buy immediately out of need or much love for that new model, so we are not expecting a really sharp fall.
The other significant event to look out for is the COE quota announcement by LTA for the quarter August to October 2019 – its not out yet as of this writing, so still up in the air. After a rush of COE renewals in March and April 2019, which, you know, lessen the number of available COE up for bidding in the following quarter, renewals in May and June seem to have slowed a little. This feel of the trend is from our experience and we do not have overall figures at this time (only LTA does) and we wait to see what those numbers are and the effect of this will be on the COE quota for the August to October quarter when the news is released.
How Can We Help With Your COE Renewal?
When you sign on with us for COE renewal loan, we help to monitor your car renewal for an advantageous time to renew. Now, we are not fortune tellers, but we do look at the available data more often than most, and our record of helping car owners save has been firmly on the “Helpful” side. Unlike others who would process your loan and just renew immediately for you (they deny you the best chance for savings) we do this monitoring to help all our customers who renew through us.
To find out more, call 92782880 during office hours or if you are browsing this with you phone, click the WhatsApp button to reach us. We are always happy to help, the more you save the happier we are!