COE Renewal Price Cat A, B & C | December 2020 PQP Results
What did most people expect of the COE for the latest bid of November 2020, coming on the back of the announcement in the news of increased COE quota for the November 2020 to January 2021 quarter? (Available COE quantity is announced every three months, for the coming three months)
Our guess is that most people expected some softening of the prices for car COE and with the first bid of November slightly lower that seemed to be the case.
And yet, we now see in the latest and second bid of November 2020, a rise in COE prices for Cat A and B, to above the price of before the announcement, of extra COE quantity! Only vans and other commercial vehicles are lower than before the announcement.
And this was despite significant increase in quantity for Cat B – click here to view percentage change of each COE category in our previous article.
We expected that even with the expected increase in confidence as our economy opens up again that there would be some easing of COE prices, especially with the increase in Cat B quantity, but here are your latest bid results:
COE Bidding Result 2nd Bid November 2020
Cat A $37,690
Up by $1,700 (+4.72%) in the latest bid. This latest Cat A is up by more than the previous decrease in the first bid of November 2020.
Cat B $41,101
Is up by (+5.39%) or $2,101 compared to the last bid. Cat B is showing strong buying support despite the larger number of COE available in this current quarter, of which November 2020 is the first month.
Cat C $30,334
Down by $1,168 (-3.70%) compared to the first bid of November. This is on the back of 9.05% increase in Cat C COE. We do not see large falls moving forward, as logistics and delivery services continue to thrive in the current environment, which should lend much support for Cat C.
COE Prices And Current Situation
Very visible are shopping malls filling up with crowds again and traffic building on roads.
All car categories and the commercial categories seem to be buoyed by the more positive outlook of the economy, as signs that we are alive and still, mostly, well, have returned, and we see businesses open up and are allowed to operate again.
The stimulus made available because of Covid-19 to businesses – such as the easier availability of (SME) loans to companies – have also had their positive effect.
Those who would have lost their jobs would mostly have lost them by now, with fewer losing jobs moving forward, and this would give confidence to those who still have their jobs as the rate of retrenchment falls.
These factors may have brought about more confidence for those looking to purchase cars and this has shown in the price rises in Cat A and B and the well supported Cat C with a small 3+% decrease in prices, compared to its 9+% increase in COE quota.
Looking Ahead Into December And Early 2021 – Tightening COE Quota Foreseen
Support for car COE is seemingly firm due to above factors, plus the recent announcement of Grab private hire drivers soon not being allowed to use vehicles more than 10 years old, demand side of the equation is steady and may even increase.
Also, remember, the current COE quota returned to market situation (COE quota not bid during the Circuit Breaker are being returned to bidding) is not going to last. This return of unbid COE was to be spread over a one year period and that means it will end in the month of June 2021 which is when the last of these unused COE will be put to bid. Which means from July 2021, we will likely see a sudden dip in COE quota quantity.
The other factor we mentioned before is the “drought years”, as less cars come due for scrapping during this period, this also means the number of COE put back to bidding taken from scrapped cars is reduced.
So where do you think the COE prices are heading with these confluence of factors? Up? Because that is our guess too, unless some strong mitigating factor we have not foreseen comes into the picture.
Which brings us back to our headline topic, the COE renewal rates for next month. If new car COE is headed up, should you renew your old car?
Results for COE Renewal Price December 2020
The below are the 10-year COE renewal prices for December 2020 for cars coming to the end of their 10 year COE.
Cat A $37,303
Up by $828 (+2.27%) for December 2020 renewal, compared to November COE renewal price.
Cat B $40,714
Up by $700 (+1.75%) compared to the renewal price of November 2020.
Cat C $30,656
Up by $2,121 compared to the PQP of November 2020. This is a further +7.43% increase on the back of a +12.10% increase in the previous month.
Not the best news for those seeking to renew, as the price has gone up once more for next month.
What’s Our Advice for Those With COE Renewal Upcoming?
We apologise for the late reporting this month and do hope that you still have the opportunity to secure yourself a COE renewal loan for the month of November instead of December for your car or especially for commercial vehicle where it definitely makes more sense to renew earlier rather than next month or January 2021.
What if your car COE renewal is in the month January 2021 or later? We have advice for you too, and the best we can recommend is to call or contact us to register for our PQP monitoring service.
With PQP monitoring (which no other COE renewal loan service does) and we only charge a small admin fee (starting from $321 for 10 years renewal) for the COE renewal service, including the loan processing. And unlike other services, no there are no other surprise costs if you take a bank loan through us.
We sincerely hope that you pay a lower COE renewal price and get a loan with good terms and conditions, When you get the best loan we are happy for you! 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.