If you have been following the COE bids for the last two sessions in the month of April and are hoping you will be able to renew at a lower COE renewal price for the month of May 2019, abandon all hope (for month of May)! The results are out and with significant four-figure increase in Cat A, it looks set to continue the upward march into the month of June PQP. And yes, our prediction for COE renewal prices are out (published 14th May) for June 2019 PQP, click to find out!
And (drum-roll) the result in Cat B is close to four times worse than Cat A, with and increase of over $4k above the PQP for this current month of April.
Sadly, these results are not happy ones for car owners looking to renew. And we hate to say “We told you”, but we did. Look here for our prediction of May 2019’s PQP.
We are not going to make predictions now at this time for June, but broadly speaking, the upward trend is now entrenched and set to continue, except for Cat C commercial vehicles COE.
These are the results for the month of May 2019 PQP:
PQP Cat A Up, $27,886
Up by $1711 compared to Cat A PQP of the month of April 2019. Our prediction missed the mark in our prediction by an unprecedented $733 margin!
This magnitude of increase in Cat A was really unexpected, with the first bid of April going up significantly, we had expected a slower second bid after a sharp rise, as we don’t see the car buying fervour that should lead to such an increase. However, the rate of increase in the second bid is even steeper than the increase seen in the first bid of April!
PQP Cat B Up, $39,563
Up by $4,152 (yikes!) compared to Cat B PQP of the month of April 2019. Our prediction missed the mark and are lower by $667 compared to the actual PQP figure.
This is a sudden and sharp increase and no doubt many Cat B car owners will be looking to renew using the month of April PQP to avoid the additional cost!
PQP Cat C Up, $27,819
$1059 upward difference compared to Cat C PQP of the month of April 2019. Again, our prediction missed the actual PQP by a wide margin of $773! That speaks of how unexpected the COE bids have gone in the month of April 2019!
This is a large increase in the commercial vehicles category for the April to May PQP.
So, What Happened?
Are we seeing an increase in economic sentiment and are businesses investing in new (Cat C) assets to fulfill demand? Is there some sudden interest in car purchases in Cat A, a category where there hasn’t been too many new models and for which the quota in April is the same as that for the months of March and February just before April?
Our view is that public sentiment has changed, buyers are expecting an uptrend and some may be rushing in to book their cars as a result – so as not to lose out – our national mentality (kiasu-ism). And dealers and distributors are also quietly aware of the cut in COE quota for the coming month, some maybe before (just our speculation) the announcement was made today – one day after the COE bidding exercise yesterday. What’s in the quota? Yes you guessed it, an expected reduction on both Cat A and Cat B, with a 13.9% reduction for Cat A and 5.1% reduction in Cat B compared to the previous quarter and a surprise 28.1% increase in Cat C! This may explain the frenzied bidding for COE, if the dealers had known the cut in quota. See below for the tabulated figures.
If the above is too tiny to see on your phone, click here.
We are not saying they had insider information, but the number of COE renewals increasing does result in lower quota for the following quarter as the cars that were supposed to expire and have their COEs recycled into the bidding quota are now renewed and still remain on the road – which means overall less COEs left for bidding. So, those who work with vehicle sales may already have had a feel of this happening. And their intuition led them to bid more aggressively in April before the COE quota was announced for the May to July period.
What Should I Do If My Renewal Is Coming Up?
Contact us real soon if your COE renewal is coming up in May, June or July of 2019! We want to help you but we have a limited window period!
In the month of March we had recommended car owners who early renewed through us and now we are getting text messages that say “Heng ah, renewed already!” They are so glad they followed our advice! Call us (during office hours) or WhatsApp us now at 92782880 to let us help you save thousands!
We are here to help you!