COE Renewal Price Cat A, B & C | January PQP 2022 Results & Prediction for February 2022
Chinese New Year is roaring in again… Or is it? It certainly is coming on the 1st of February, but will it be a roaring one for car sales and set new COE highs?
COE prices at the first bid of January are are down across the board.
And we who looking at the COE take in our long-awaited next breath, finally a bid that is not up again! It’s a mutual feeling from not only the car buying public, but also some dealers, as they can feel the reduction of showroom traffic from the continually higher COE prices.
But the questions many of you will be asking these:
1. Will this reduction in prices be the start of a downward trend?
2. Will this then allow me to renew my COE at a better price in February or March 2022?
These are some of our thoughts on the three categories for the first bid of January 2022.
Cat A $57,599
This latest bid is a price reduction of $1,202 (-2.04%) compared to the last bid of 2021.
Cat A hit a 5-year high back in the first bid of November and continued upwards till December 2021.
This first bid of January is the first time the price has gone down after five straight increases, with a total increase of $11,800 before this latest one where we see a $1.2k decline.
About time! For buyers who have waited, this is a sigh or relief, and yet, it is still way higher than it was before the string of rises.
And we are possibly going to see more rising moving ahead, what with the news of further COE quota reduction as we head into the February to April 2022 COE quarter – see below video.
The good news for Cat A shoppers is that Cat A has only the slightest COE reduction, while Cat B gets hit by a larger drop in available COE.
We only fear this – that rising Cat B prices will also start to pull Cat A higher! We have highlighted the reasons for this effect in our previous article before.
Cat B $77,700
Cat B has also decreased this latest round, by a good $3,289 (-4.06%).
In the last 10 bidding exercises, Cat B has gone up 8 times and only came down twice.
Coincidentally or not, both times the reduction was by $3.2k, the last one being in the second bid of November 2021. So, will we see Cat B prices coming down? Maybe for a short-term (one, two bids?), but for the longer term…
When LTA made changes to the Cat A by introducing of a power (97kw or 130bhp) limit criteria in addition to engine capacity (engine cc) criteria, more and more car models were funneled into Cat B.
This has gotten worse over the years since September of 2014, when the new rule was introduced, as newer cars such as the hybrid small cars started to get funneled into Cat B as well.
Hybrid cars have also become popular as a result of the need to reduce CO2 emissions, and of course to save petrol, further exaggerating the situation.
However, there was no shuffle of quota to put more COE into a Cat B.
So with this latest round of further reduction in Cat B for the coming quarter (see below for those who prefer to see the figures instead of watch the video above), it may be up and away for Cat B prices once more.
The only factor that may slow down of the rise in this Cat could be the diverting of purchases by those buyers who are more limited in their budgets to a Cat A car, where the COE is more attractive, and the slump as dealers rest for the Chinese New Year (which is a seasonal and a short-term effect).
Cat C $42,200
Cat C is down $1,800 (-4.09%).
This is the second decrease in a row for Cat C, and a total decrease of $2,800 from when it was $45,000 in the first bid of December 2021.
My feeling is that some businesses are not geared up to make big purchasing decisions when their bosses are on holidays, or in a holiday mood, like now as we approach the Chinese New Year.
So this may all change again, once the celebrations are over.
But also, the shift between diesel commercial vehicles and electric vans is certainly happening now, which will take some time for companies to digest the operational logistics as to how to accommodate new type of vehicle into the business, given the shorter travel distances and relatively few charging points compared to refueling stations.
Some may, as a result, put off their purchases as a result, and hold onto the old vans till their decision becomes clearer.
LTA’s policy of not allowing use of ETS (early turnover scheme) for diesel vehicles is another factor that companies will need to digest in their decision making, though many dealers will have schemes to ease this hurdle.
What We Foresee For The Today’s Bid (19th Jan 2021)
The fact that the first bid of January 2022 went down across the board, I get the feeling that sales are slow, and so there is not the usual rush to deliver cars for Chinese New Year.
This could be the result of the recent highs set for cars both in Cat A and Cat B.
Contributing to the slowdown is the supply chain disruption and global chip shortage that is affecting manufacturing of all sorts of vehicles, and especially those with more advanced features, such as EV models for Tesla and BYD commercial vehicles.
This is leading to Tesla models being delivered with less features than promised (example here) and delayed delivery for vehicles such as the electric BYD T3.
In Singapore, the BYD T3 is facing a total no stock situation since November 2021 till now. Estimated date for delivery is end of February, and even after that, still uncertain on when the next deliveries can be. (We have some units available of the BYT T3 for end February – WhatsApp if interested).
These factors probably had some part to play in the slowing situation that we are feeling now.
Plus, the traditional CNY break is coming, where small dealerships will usually close their shutters for up to a week. Their workers will likely return home to Malaysia or China and may be away for more than half of February.
There will certainly be a lackluster bid for COE during this period and the last bid of January 2022 could be the one where we see another round of price decrease. I get the feeling many have their fingers crossed it would be lower.
But How About After the CNY?
Not the news you’d like to hear, but that’s when it could go back up again.
The lower COE prices would lead some traffic back into the showrooms, and the tightening COE quota for the coming quarter starting from February and up to end April will not help to lower the bid prices.
So this may not be favourable to those whose COE renewal is coming up towards April or May.
For Those Needing To Renew COE This Month
This is the COE renewal price for January 2022.
Results for COE Renewal Price January 2022
So with the dip in bid prices from first bid of January 2022 not affecting the January COE prices, that must be a disappointment for those whose COE expiry is in this month.
(Edit: February 2022 COE Renewal Price is just out!)
Why? Because it’s up again!
Of the previous 6-bids affecting January COE renewal prices, five out of six have been up!
If you do not know what makes up the PQP COE renewal price, click here to find out.
With that in mind, see below for the January 2022 COE renewal prices. Prices shown below are for 10-year COE renewal.
(Want to look at our earlier prediction to see how close we predicted compared to the actual January 2022 renewal pricing below? Click here)
Cat A $54,039
Increased by $3,469 (+6.86%) over December 2021’s PQP price.
The COE renewal for Cat A started to move the two months ago and this is third month it has gone up.
With the shortage of COE quota, year end bonuses (for some at least), the chance of the COE bid prices remaining where they are or higher is likely.
Since January’s first bid is down, and we are forecasting a soft bid for the second bid of January, are we going to see a decrease or more increase again in the next month for February 2022 COE renewal?
We can help answer this and guide you through your COE renewal loan to renew at the correct time.
Just click on WhatsApp to reach out to us and save thousands like those who have contacted us earlier.
Cat B $79,034
Up by a painful $5,080 (+6.87%) over the renewal price of December 2021.
After last month’s whopping increase of 11.40%, this month it has increased further upwards.
And are we going to see more of the same for February and later months?
If your COE renewal is coming up, then one of the best things you can do for yourself is to come register with us for PQP monitoring, a free included service with your COE renewal loan, and we will let you know where it is going – to make sure you have the info to make an informed decision that can save you thousands!
Just like those we helped before, you won’t regret contacting us, we promise!
Reach out to us using the WhatsApp button or fill in the contact form now!
Cat C $42,316
Up by $1,666 (+4.10%) when compared with to the PQP of December 2021.
This is not as big an increase as Cat A and B, but at over 4%, it is the largest increase in Cat C since March of 2021.
COE bidding prices for Cat C have been down the two latest bids (including the early Jan 2022 bid), but still the COE renewal price is up.
Struggling to figure out why? We can help you.
It can be calculated, and we can show you how. It’s a simple average of the past 6 bids of the last three full months.
But trickier is to figure out which month is the best month to renew on.
Just contact us with your needs for COE renewal and we will take care of the renewal loan as well as the question of when to renew it by, so as to maximise your advantage.
COE Renewal With A Difference
We have helped hundreds and we will also help you to secure an advantageous hire purchase car 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. Sometimes a lower interest rate can cost more than a loan with higher interest!
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.