COE Renewal Price Cat A, B & C | September PQP 2021 Results
Just when we passed some comment about the reality economic weakness may be setting back in after the post Circuit Breaker boom, we have COE bidding in this second bid of August that has sent prices higher, and significantly so for Cat B.
So what changed that had sent more customers to showrooms to drive up the COE prices?
Before we venture a guess as to what happened, here is the COE bidding result first.
COE Bidding Result 2nd Bid of August 2021
Cat A $46,689
This is a price increase of $1,500 (+3.32%).
Yes the price increased, but is still below the price from two bids ago at $47,010 at the first bid of July 2021.
So Cat A is fluctuating at this level, and the previous bid price of $45,189 was a fall we did not foresee, as the lower quota of Cat A, and also other categories, kicked in starting from the month of August 2021 (info reported here), we had expected a slight rise.
Cat B $61,001
Prices for Cat B closed this bid up $5,000 (+8.93%).
We are once again above the $60k mark, where we think it will remain for the short term.
The rise is price may likely still continue for the next bid (more on why below).
Cat C $40,010
This is a decrease of $2579 (-6.06%).
After the previous bid rose by $3,066, Cat C is back down but still above the last bid.
The big squeeze of a -26.75% reduction in COE quota for Cat C had no doubt caused the last rise, and that has probably hurt commercial vehicle sales as dealers raised the prices in order to remain profitable, causing this round’s weakness.
What Will Affect the Next COE, First Bid of September 2021?
This round’s bidding price increase was likely due to the timing of the easing of P2HA restrictions on eating out.
When eating out was stopped again, it was bad for all kinds of shopping, including shopping for a car. It was just too inconvenient to go out and have to return home to eat. So most families did not venture to shop for hours at the malls, and footfall was similarly lowered at car showrooms.
But as restrictions eased to allow two to eat at any hawker centre and restaurants could serve those who were vaccinated, shopping also benefited, car shopping included.
The result of which was more bids submitted in total this second bid of August, and a price rise for Cat A and a rather handsome price increase for Cat B!
Any significant rise in prices will affect the next bid as dealers move to increase prices for the vehicles they sell.
The largest mover this round is Cat B, up by a cool exact $5k. Some dealers have gone ahead to increase Cat B car prices, but not by as much as $5k.
Why do car distributors not increase by the same amount as this sharp increase? That is because with most sharp COE price rises, the following bid is likely to relax a little as car prices increase and customers turn away from signing for that new car. At least for now, or until prices go back down.
That is the usual response that we described above.
But this next round of bidding is also a three-week gap bid.
Usually, there are two weeks between COE bids. But when there is a three week gap between bids, dealers tend to be able to secure more buyers deposits and there will be more bids submitted for the round.
Without doubt, more bids push prices higher. Either immediately, which we expect in September’s first round of bidding, but also in later rounds, as buyers fail to get their cars, and dealer urge them to top up their COE bids.
Many customers don’t agree to top up, but some do. And those who do, contribute to bids going in at higher prices.
This three week gap will affect all categories of COE, not just Cat B, so we do expect higher prices for Cat A and Cat C as well.
Results for COE Renewal Price September 2021
The COE renewal PQP rates below are for September 2021. To see the COE renewal rates for August 2021, click here.
Prices shown below are for 10-year COE renewal prices for September 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? Or do you lose out all the benefits that a 10 year COE renewal gives you?
And here’s a tip on how to save on renewal! Click here.
But let’s get to the prices for September 2021 renewal! And you can compare it with our COE renewal price prediction published earlier in August 2021 to see what we provide in advance for customers who have registered with us.
And to double check if we are accurate with our predictions.
We noted in last month’s announcement of PQP results for August that none of the categories have moved by more than 0.8% in cost. And it seems very much similar this time for September’s COE renewal prices!
The largest percentage movement is 0.89%, which is small!
Cat A $46,704
Up by $346 (+0.75%) compared to August 2021 PQP price.
Our prediction was $46,489, $215 dollars lower than this actual result.
The August PQP is the first time that Cat A has gone down in price for COE renewal in one year! And now, it is back to moving upwards again.
Will it continue moving upwards for Cat A in October?
Cat B $58,124
Down by $182 (-0.31%) compared to the renewal price of August 2021.
Our prediction was $57,458, $666 dollars lower than this actual result.
Cat B comes down for the first time in 5 months. But only marginally, less than half a percentage decrease. We predicted more of a reduction in price, but it did not materialise.
Still better than nothing, for those who have cars expiring in September, go ahead to renew in September, there is no advantage renewing earlier in August.
But will the October price go up again? We have already seen some hint of what it will be.
If your COE renewal is coming up in October or November, the wisest thing you can do 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.
Contact us using the WhatsApp button of the contact form immediately!
Cat C $39,171
Down by $351 (-0.89%) compared to the PQP of August 2021.
Our prediction was $39,502, $331 dollars higher than this actual result.
If you have vehicles in this category coming up for renewal in the coming month of September, you can also like Cat B, safely wait till next month to do the renewal. It will be lower.
However, if the renewal is for October or later, would the trend be still downwards? We have a feeling it will not. Call us to find out and arrange for a COE renewal loan to be done at the correct time.
Contact us to get more info on how to make the renewal make sense for your commercial vehicle and when to renew.
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.