COE Renewal Price Cat A, B & C | July 2021 PQP Results
If your car’s COE renewal is coming up two months from now in September 2021, then this month’s bidding prices are all down but probably putting you into a dilemma. What should you do, the prices for June 2021 are lower, and the prices for July are headed upwards, and Cat B by a lot. Ouch!
But before we get to the COE renewal prices, this is how the latest bid just closed.
(The rest of this article is about June bidding results and July PQP prices, but if you want to jump forward to August 2021 COE renewal prediction, click here.)
COE Bidding Result 2nd Bid of June 2021
Cat A $47,821
Price of Cat A COE went down, by $689 (-1.42%). This is a mild decrease in prices, happening while showroom footfall was quieter during the P2HA. (Eating out was only just loosened on 21st June, two days prior to bidding close).
The bid previous to this one was up sharply at $48,510, from $41,801. But the prices have stayed at about the $48k level this latest bid.
The number of bids to the number of available quota stood at 1.42 times (830 available and 1,178 bids in total), down from 1.67 times during the first bid of June 2021.
But then again, the previous bid was on a three week gap between COE bids, where distributors had one extra week to gather orders beforehand, so this is rather expected.
Cat B $56,032
Cat B is down by a significant $4,077 (-6.78%).
It is notable that the reduction is bid price of this quantum happened before the cut off date for Cat B cars to be registered prior to incurring additional $5,000 for those models that fall foul of the new VES emissions standard taking effect on 1st of July 2021.
What this means is that there is no longer the mad rush to get COE to register for customers of Cat B cars, possibly due to those orders already fulfilled. Or, that the sales staff are have already given a verbal disclaimer that registration cannot be guaranteed before the 1st of July. Perhaps because of these disclaimers that meant some customers were dissuaded from purchase as they did not want to pay extra.
These disclaimers are necessary to save dealers a loss if in fact the final bid jumps due to strong demand caused by the VES penalties coming into play.
The COE price now should already have adjusted for post VES change and therefore should not move far from this level in early July 2021, ceteris paribus.
The Cat B bids to available quota ratio at this latest bid stands at 1.22 times, 983 bids submitted to 809 available.
Cat C $37,000
Cat C fell, no, not the right word, reduced by a mere $2. (-0.00%).
As far as we can see, the demand for commercial vehicles is still there. We can see that the Cat C bids to available quota ratio at this latest bid stands at 2.01 times, 478 bids submitted to 238 available.
But the price for this Cat is not going up.
Our guess is the companies, while they do need vehicles, are not experiencing higher profit margins in their logistics delivery business. The prices are looking to stay around this level. And as no one foresees future margins growing significantly, it would not be wise to spend too much on the vehicles that will be used for this purpose.
A growing dose of pragmatism, as the newness of internet orders and delivery has become the norm? Or could it be that the industry is looking forward to electric powered vans in the upcoming few months and holding back for now, unless they can get a good price?
We have to say that for delivery vehicles, the savings for them to be running on battery power is significant compared to diesel. Just as diesel has an advantage over petrol powered vans, so electric will be the new edge to achieve cost savings.
COE Bidding – Upcoming Changes
Few items to note as we move forward with the upcoming bids in the month of July 2021. What we will see in the price movements will depend on all of these factors, but of course, this very short list is not comprehensive (neither is it aiming to be).
End of COE Redistribution
This is the first thing that comes to mind, and will affect the COE quota negatively. We reported on this in our previous article before. You can see more details in that article under the heading “We Also See That COE Quota Is Going to Tighten Once More” and the percentage of COE quota reduced was projected there in that article – we are looking at some pretty painful reductions due to this.
In short, the COE supply is set to shrink because the quota that was left unused during the CB (Circuit Breaker) period in 2020 was to be released to the public in the next 12 months after bidding was resumed. But to make it match the COE quota quarters, latest of which is the May to July 2021 quarter, the release was spread out over 13 months instead.
This release of unused COE ends in July 2021. So is it time to snap up your car COE before the start of August 2021 if you intend to get a new car?
VES Penalties For Band C1 C2 Cars Increased 1st July 2021
This event has already been briefly discussed above in Cat B discussion as it tends to affect the larger engines more than the cars with small engines because they burn more fuel per km travelled, and that is the basis of this emissions testing, i.e.: the g/km for CO2 and four other gasses emitted from tailpipes. An example of this is would be the comparison between Honda Jazz and Odyssey. Where the Odyssey is penalised, the Jazz is not.
Since the latest COE bid is over, these last few days of June are the final days to register vehicles before their penalties for band C1 and C2 are increased by $5000.
These regulatory changes usually results in a last ditch attempt by car buyers and dealers to get cars registered before the changes are put in place, but this latest bid just before this regulation kicks in, the COE has fallen for both Cat A and Cat B instead.
Could this be a sign of weakening demand, or that the demand was already earlier catered for by prompt bidding for customers on behalf of customers? Time will tell as we go into the month of July to see where the COE bids goes.
More Footfall at Car Showrooms?
Which may in turn result in more car sales? That’s a possibility as we move out of P2HA and move into P3HA, we are seeing some places come more alive, especially restaurants and those retail units near eating places.
As people stay outdoors for more time, and shopping increases, this could mean more sales in everything, including for cars. Would this result in more sales than in the past two weeks which ended up with lower COE for all the three Categories we monitor?
We wait to see.
With that, let’s get to…
Results for COE Renewal Price July 2021
The COE renewal PQP rates below are for next month, July 2021.
Prices shown below are for 10-year COE renewal prices for July 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 July 2021 renewal!
Cat A $46,896
Up by $1,624 (+3.58%) compared to June 2021 PQP price.
This, amazingly, is the eleventh straight increase for Cat A COE renewal prices.
The first increase was since September of 2020! We really wonder many more in a row can this go on for.
Cat A is the category that includes the basic cars. If anyone needs a car for transport purposes, this is the minimum entry level. And as economic activity is resuming and pulling out of the Covid-19 mess, I suppose we can expect to see levels climb proportionately, especially as we enter into a period of low quota.
Cat B $57,955
Up by $4,023 (+7.46%) compared to the renewal price of June 2021.
Unlike Cat A, this is only the third increase in Cat B COE renewal prices, but the magnitude of increase has been a faintly scary $8,239 over just the past two PQP.
If you are reading this in June 2021, this means don’t wait, time to go and get your renewal done with us immediately if your car is expiring in July 2021! There is a big sum to be saved and we can do it for you!
Contact us using the WhatsApp button of the contact form immediately!
Cat C $39,807
Down by $517 compared to the PQP of June 2021, so this is good news for those with commercial vehicles looking to renew.
If you have vehicles in this category coming up for renewal in the coming month of July, you can safely wait till next month to do the renewal and save yourself some cash.
However, if the renewal is for August or later, would the trend be still downwards?
Contact us to get more info on how to make the renewal make sense for your commercial vehicle and when to renew. Or any other vehicle, except motorcycles. Why? Because…
COE Renewal With Savings For Many By SG Cash N Cars
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.