COE Renewal Price Cat A, B & C | April 2021 PQP Results
There are those who, while doing their COE renewal with SG Cash N Cars, lament that they thought the Covid-19 and all the resulting chaos and restrictions to business and work would bring the COE crashing down.
Or at least not go up like it has done in the past half a year since COE started bidding again after CB. (COE bids restarted in July of 2020 after a three month pause). We now know that the anticipated crash… didn’t happen. In fact, quite the opposite.
A few customers who signed up early with us have benefitted by thousands in savings from the advice we gave them on COE direction. (It’s rare, but we now have three customers who signed up one year before COE expiry for our COE renewal loan service, and some others eight months and six months before. But most sign up one or two months before expiry)
It’s always good to come back to our website to catch up on the latest COE Renewal Price news, because we will constantly update twice each month. And if your COE renewal is coming up, it’s never a bad idea to contact us for more info on what you can or should do.
So how did the COE bidding at the end of March 2021 go? Here are the latest COE bid prices for the four wheeled categories.
COE Bidding Result 2nd Bid of March 2021
Cat A $44,589
The COE for Cat A has gone up, again. Last bid it rose by $995 or +2.43%. This latest bid it is up by $2,593 or +6.17%. Looks like the trend for Cat A is positive.
We wrote on the possible reasons for Cat A strength in our previous article where we asked if COE has turned a corner? This support for Cat A looks set to continue and provide support over a longer term.
Cat B $47,001
Cat B was previously down by $1001, but in this latest bid, it is up $2,000 or 4.44%, which is more than it had eased downwards in the previous bid.
We had mentioned some support for Cat B at this level, and this bounce back seems to indicate the support is still there.
Cat C $39,589
Cat C is up by $2,076 or +5.53% for this bid, after falling by $3,377 previously. We were saying this Cat is where the action is and after two bids where the price went down by a total of $7,488, it is moving up again.
Our next bid guess is another increase for Cat C. Why? Read on…
Latest COE Bids Are All Up Again. And Moving Forward?
To all of the people who are expecting a break in the uptrend, surely this all up pricing is disappointing. You must have noticed that Cat E (Open) and motorcycles are also up this latest COE bid.
And, we have mentioned before, Open Cat can be read as where the people in the car trade think COE is headed in the short term. (Note: Cat E is only valid for three months after successfully bidded for).
It’s all red.
Mid To Longer Term Factors Positive For COE Rise
Many of the previously mentioned factors in our earlier reports have outlined mid to longer term reasons that continue to buoy COE prices, including more commercial companies bidding in Cat A (for private hire vehicles) due to change in Grab driving rules, and, a fall in the COE quota as we head into the coming two years.
Do not underestimate the Grab rule change, this may bring about a lot of demand as the number of PHV (private hire vehicles) on the roads have already outnumbered taxis for some time. And a significant percentage of these PHV were the ones that are older than 10 years. The rationale is simple – as a working vehicle for earning income, it made most sense for Grab drivers to go for cheapest fuel (when they had the Malaysia option), lowest car servicing prices and of course lowest car cost (i.e.: COE cars past 10 years old). And these older cars are the ones Grab will phase out of their service with their new regulations.
As an indication of the scale that this one rule change at Grab will have on COE bidding, take a look at the numbers below:
Comparing the above PHV numbers to this, our monthly COE quota at the moment for the quarter of February to April 2021:
You can see that this is going to have some impact on COE pricing.
Even considering that not all PHV are old cars, or even that all of them are full time drivers earning a living from driving, going by our best guess, the number of PHV needing to change from old to new cars should still be in the five figures.
Those PHV waiting waiting for their turn to switch to newer vehicles could, on their own, take up all the full COE quota for quite a few months. They have been given some time to do the switch, so the demand is more spread out. But it’s there.
Those who had expected the fall in prices due to Covid-19 probably looked only at that one factor of economic performance without looking for other factors. But even the economy that was beat up by Circuit Breaker is on the up, with most sectors showing good signs of recovering, leaving behind hospitality and travel services sector still not doing too well.
Short Term COE Factors
Some months down the road, we are also expecting COE quota supply to be lower. This is across all Categories but happens at slightly differing times. That we have mentioned before.
But also, shorter term COE factors also seem to be pointing up.
The next immediate factor is the three week break between bids. COE bids are usually twice a month and two weeks apart. But the next bid is 7th April and three weeks from the last bid of March 2021. This gives car showrooms more time to collect sales and with more orders in hand; this tends to push prices up.
This is why we predict a rise in the next bid, and especially for Cat C, which is already short on quota since the last announcement for the February to April quarter.
One major commercial vehicle distributor mentioned they are out of COE for deliveries in April and that buying old Cat C vehicles for ETS at this time is costly. This, coupled with the recently obtained CVES rebates (valid from 1st April) obtained for certain popular commercial models, mean lower new vehicle prices could drive more sales and up the Cat C prices some more.
So what if COE prices rise but new vehicles are cheaper to buy due to higher CVES rebates? Because, poor COE renewal people will need to pay more when the PQP goes up due to high bid prices.
Results for COE Renewal Price April 2021
These are the COE renewal rates are like for next month, April 2021.
Prices shown below are for 10-year COE renewal prices for April 2021. You pay half the amount rounded up to the next dollar if there are any cents after divided by two, for 5 year renewals. However, should you consider a 5 year COE renewal?
And here’s a tip on how to save on renewal! Click here.
But let’s get to the prices for April 2021 renewal!
Cat A $42,283
Up by $886 (+2.14%) compared to March 2021 COE renewal price. This is the eight straight increase for Cat A COE renewal prices. The first increase was since September of 2020 till now! How many more in a row can this go on for?
This is the effect on COE that we are seeing from Grab regulation change.
Cat B $47,316
Down by $385 (-0.81%) compared to the renewal price of March 2021. This is the first decrease in Cat B COE renewal prices after seven straight price increases.
But the decrease is only small. Will we see more decreases in the coming months? Yes, we might, as Cat B does not have as much support from PHV registrations, these being the higher cost cars that are not usually registered under company schemes for Grab driving.
Cat C $39,982
Up by $1,502 compared to the PQP of March 2021. This is another big four digit increase after the $4,009 increase in March compared to February.
Unlike Cat B where we feel it is going to ease off, Cat C looks like it is going up some more.
Contact us to get more info on how to make the renewal make sense for your commercial vehicle. Or any other vehicle (except motorcycles). Why? Because…
We Achieved COE Renewal With Savings For Many
If you are looking at COE renewal coming up, you will be glad to know we have helped hundreds and we will also help you also to secure an advantageous loan with the best terms and conditions avoiding the common pitfalls, and also to know when to renew if you register early with us for PQP monitoring as our customer.
That’s not all we help with – you also get to choose from all available banks and finance houses for your COE renewal loan, and we explain the benefits of each one to you if you’d like to know, before you pick the one that is most helpful in your situation.
Did you know? Sometimes a lower interest rate loan can cost more than a loan with slightly higher interest! But we will be here to assist, so don’t worry!
We sincerely hope that you pay a lower COE renewal price and get a loan with good terms and conditions, and to that, all our past customers can attest!
Click to WhatsApp if you have any queries or call 92782880 (during office hours). Or simply use the contact form on this page and we will call you back to assist.