COE Renewal Price Cat A, B & C | Results for March 2022 & COE Trend
So much has happened in the recent month or two, including talk of impending interest rate hikes and the recent start of a war between Ukraine and Russia. Will these external factors affect us here in Singapore and our COE?
Hint: They likely will and we tell you why.
Before we go to that, here are the latest COE bidding results.
COE Bidding Results – Second Bid February 2022
Cat A $63,000
This latest bid is a price increase of $2,239 (+3.68%) compared to the earlier bid of February 2022.
Cat A has hit another multi year high, and reached a level not seen since June of 2015, seven years ago.
The number of bids put in for Cat A has gone up higher in February than January by about 112 bids each session.
Cat B $93,590
Cat B has similarly increased this latest round, but by a much heftier $7,488 (+8.70%), which is more than three times the increase of Cat A.
In the 4 bidding exercises of this year, Cat B has gone up 3 times in a row to where it is now.
Looking back 10 years, there were only three other bids which ended at or above the current level. Since there are two bids a month, this means there have been only 3 out of the past 240 bids higher than this one in the past 10 years.
If I read correctly, the next bid should be a reduction in price, as usually happens when the prices reach such a high peak so quickly.
Cat C $46,501
Cat C is also up, by $2,500 (-5.68%).
This is also the third increase in a row for Cat C this year, same as Cat A and B.
Earlier we had said that some businesses are not geared up to make big purchasing decisions when their bosses are on holidays (the Chinese New Year). It seems they are back at work.
Plus, for Cat C, we feel the stock of available vehicles with ETS potential has shrunk, with the prices of these vehicles for sale also having gone north, bolstering the prices of Cat C COE bids.
The introduction of new fully electric commercial vehicles along with early adoption incentives is also a driving factor pushing up prices in this Category.
External, Internal: Which Factors Will Affect COE Going Deeper Into 2022?
Except for the very first bid of January this year where COE prices took a modest dip in all categories, all the other bids of 2022 so far have ended higher.
There has been no change in the COE quota. The quota announced in January for the February to April quarter remains the same for the rest of this till end April 2022.
In fact, the number of COE has remained at about 530-550 range for Cat A for each bid since early November 2021.
What has changed though, is the number of bids put in for Cat A in February, which has seen to increase over January 2022.
Why have the number of bids put in increased for February?
We feel this has to do with Covid is becoming accepted as a long term issue we are living with. The general population is feeling less inhibited and safer with vaccines rolled out and taken by a high percentage of our citizens.
WFH (work from home) is rolling back and more are required to be at the office for work and meetings, and this can prompt the increase both in showroom traffic (shopping is going back to near normal levels both in malls and showrooms) as well as the need for transportation.
Inflation is also increasing at an alarming rate, and if it becomes entrenched in the minds of people, then many of us would have the mentality of going out to purchase expensive durable goods before their prices jump even higher.
Some, in Cat A, may be buying for fear the COE may go even higher. Though Cat B is high, we see room still to rise for Cat A.
And let’s not overlook the elephant in the room, the one most obvious, and that is that we are having rising COE prices because of the shortage of COE quantity (we provided a table here in earlier article), caused by the seasonal reduction in COE by LTA.
We mentioned earlier about external factors such as the rising interest rates soon to come, and the war, and the rising commodity prices such as for oil which will affect our petrol and diesel costs.
And how will these commodity and oil prices affect the COE trend in the coming months?
Indirect Causes of Car/Transport Cost Increment
The interest rate hikes in US will likely cause also local rates here in Singapore to be raised. These in turn will mean car loan rates are going to move up as well. If you have not got a car and intend to buy it on a car loan, then your cost will likely be higher than if you take your car loan right now.
This might explain some of the “buy now” mentality we have from consumers, regardless of the COE cost at the moment. The interest rate hikes have been hinted at for quite some time now, and we do not see them being put aside just because of the war.
The war itself has caused shortage of commodities which are exported from Ukraine and Russia, pushing prices higher. If we are talking cars, then we have to touch on oil prices, and they hit just US$100 per barrel for Brent crude. After all, Russia is the second largest oil exporter in the world, and though there are no sanctions yet on their oil, it may come, and the prices are reflecting that.
This is certainly to lead to higher pump prices for fuel at the petrol kiosks.
Which will make it a big push factor for consumers to pick hybrid or electric new cars or vehicles. Even new commercial vans are going full electric, such as the BYD T3 (which we are selling – click on WhatsApp to contact us for more info on prices).
High Petrol (And Diesel) Prices Leads to Higher COE, Why?
Petrol costs for a typical Singapore car which drives about 20,000km per year will be in the region of $400-500 a month and increasing as we speak. Imagine paying just $150 for your petrol. Yes, the owner of such a car can pay just that, or less, for electricity costs for his car, driving that same mileage.
He would not mind putting the (estimated) $300+ saved into the installment for an all electric car.
We are just estimating the amount of savings that are possible for an electric vehicle. But many factors come into play when doing such a calculation, most significant of all is the monthly mileage a driver would cover.
The higher the mileage driven per month, the greater the monthly savings achieved from switching to electric. It could be way more than $300.
This means Grab drivers and commercial vehicles are going to be big beneficiaries. As long as they can accommodate the vehicle charging cycle into their usual workday – that or have a charger installed in their own premises – this would be a great solution to the rising petrol/diesel cost.
What this means is also more demand for COE, because, the used hybrid car choice is scarce and almost non-existent for full electric ones when buying used cars. That full electric used cars for sale are so rare is one of the driving factors for higher demand for brand new vehicles, and hence the COE.
How About COE Renewal: Those Who Need To Renew COE This Month
This below are the COE renewal prices for March 2022.
Results for COE Renewal Price March 2022
So with the last three in bids prices rising in a row for everything from Cat A to Cat C, the results for March 2022 have certainly been pushed upwards as well since COE renewal price is an average of the past 3 months COE bid results..
Of the previous 6-bids affecting March COE renewal prices, for both Cat A and B, five out of six of these 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 predictions to see how close we predicted compared to the actual January 2022 renewal pricing below? Click here)
Cat A $59,179
Increased by $2,509 (+4.43%) over February 2022’s PQP price.
The COE renewal PQP price for Cat A has moved up for the fifth month in a row with this latest increase.
The price is only increase by this smaller amount because there was one bid out of the past 6 that went down, which is the first bid of January 2022.
Will we see more increases and is this the price you should renew at now before it goes even more? Well, that depends on many factors.
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 $83,464
Up by $2,881 (+3.58%) over the renewal price of February 2022.
Cat B has gone on the increase for a long time now, with increases each month for half a year now without any break in it’s upward climb.
And are we going to see more of the same for April 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 $44,118
Up by $834 (+1.93%) when compared with to the PQP of February 2022.
This is not as big an increase as Cat A and B. Cat C has always been more calm in reacting. Maybe it is because this being a new company van or lorry, would not be an emotional purchase unlike a personal car.
This is March PQP shown above, but how will the COE renewal be for the upcoming months for Cat C?
Struggling to figure out? We can help you peek into the future a little.
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.