COE Renewal Price Cat A, B & C | February 2021 PQP Results
As was expected, this last COE bid for the month of January 2021 was an upward push again, especially for the commercial vehicle category C COE, which we have foreseen the huge reduction in number of COE quota in our previous forecast write up on the PQP for February 2021.
Here is the latest COE result from second COE bid for January 2021, and it is all red (up).
COE Bidding Result 2nd Bid January 2021
Cat A $43,501
Up by $2,892 (+7.12%) in the latest bid.
In our previous announcement, where we mentioned that the prices went sideways and how that seemed to indicate buyer acceptance of car prices and COE prices where they are, but now we are seeing another increase.
Is this evidence of further appetite for cars prices being even higher? No car buyer wants this, but many can still pay it (some, with the help of a car loan) for the need of a car.
Cat B $50,100
Is up by (+2.24%) or $1,099 compared to the first bid for January 2021.
Cat B is still rising and this is the fourth increase in five bids, starting from November 2020 second bid onwards. Only in first round of January 2021 did the price go slightly lower, by less than three hundred. The last five bids have brought the price from $39,000 to the current $50,100, a rise of $11,100 in total!
Cat C $40,999
Up by $5,099, a whopper of a jump that we hardly see from Cat C, percent wise (+14.20%). Cat C is now close to Cat A.
There’s been only two bids for 2021, but Cat C is now way above the high for year 2020 Cat C of $35,201. We are now (+$5,798) above last year’s highest Cat C level set in December.
Welcome to New (COE) Heights of 2021
We wish you all an early Happy Chinese New Year! We tend to want new highs for our income and personal achievements, but we are welcomed into 2021 with new highs for COE.
Similar to Cat C COE prices, we have noticed the same for Cat A and B – current prices for all Categories of COE are higher than the highest for 2020. And this includes the pre-Circuit Breaker months at the beginning of last year.
If we read COE prices as an indication of strength of the economy, we are back to normal, but that is not quite true yet with some industry sectors and people obviously still experiencing pain from Covid-19 restrictions.
Other factors must also be at play, and one of the big factors is the impending, already announced, reduction of COE quantity for the February to April months of 2021, which has given us a case study of how COE quota can affect the bid prices – Cat C being the perfect example of what happens when the number of COE drops, with it’s sharp reduction by 30.48% and the $5,099 rise in price. Note that this price rise has happened even before the shrinkage in COE for Cat C which only starts in February 2021!
Which brings us to the other factor we mentioned last article, FOMO (Fear of Missing Out), where most will think it is safer to get the COE bid first, before the reduction in quota, and hence the driving up of prices even before the quota is actually reduced.
While this is clearly apparent in Cat C, the same effect is being seen in Cat A and Cat B is coupled with some seasonal festive bidding, as dealers and car distributors try to obtain COE for car deliveries slated for before Chinese New Year. There is still one COE bid to go before CNY and those COE for February’s first bid could still be used for CNY car deliveries, i.e.: expect the next bid to still be affected by festive season bidding.
Cat C COE are used for commercial use vehicles, and we do not see festive bidding as part of the climb in prices, so the climb in price, we put down to almost entirely, the reduction in COE quota.
What are we looking at for the rest of the year, do we have target highs which we think COE prices will reach? Yes, we are working on our predictions for those, and other factors remain at play and affect significantly where this is headed.
And one of those factors is related to how companies such as Sheng Shiong, NTUC, Caltex and SPC doing good business and making bumper profits.
Why? We are all confined to stay within Singapore, and our expenditure, like it or not, will be here. How does this affect COE? We have seen a hint of it, and the months to come will show more of where this will lead and, maybe, confirm what I have been thinking. More thoughts on that in later posts.
In the meantime, you would have also guessed, the COE renewal prices for February 2021 are also all up.
COE Renewal Price For February 2021 Cat A Cat B Cat C
Cat A $39,844
Up by $1,707 (+4.48%) for February compared to January 2021 COE renewal price. Last month’s COE renewal price was up by $834, so this is a stronger increase than previous month.
Cat B $45,586
Up by $2,903 (+6.80%) compared to the COE renewal price of January 2021. Last month’s COE renewal price was up by $1,969 and this month’s is a bigger increase also for Cat B.
Cat C $34,471
Up by a significant $1,672 (+5.01%) compared to the PQP of January 2021. Last month’s COE renewal price was up by $2,143.
Across all categories of COE renewal, the price is up, and note that this increase has persisted for the past 6 months without a single month in the past half year where the COE renewal PQP has decreased. It is a solid up trend, and we do not yet see signs of this abating.
Below you can see a clearer picture of this with the past 6 months of PQP listed together.
What Should I Do Now If I My Vehicle COE is Expiring Soon (Mar or Apr 2021)?
Given the situation we are facing, the likelihood of a continued rise in prices is greater than the relief that may come after the festive buying has fallen back to normal.
So, if you have decided to keep your current car, and renew its COE, the best thing to do is to get in touch with us as soon as possible – call 92782880 (during office hours), or click on the WhatsApp or fill the form on this page and we will get back to you.
Sign on with us and we will not only help you renew your COE like others advertise they do, but provide you with something no one else does.
COE Renewal With A Difference
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. Sometimes a lower interest rate can cost more than a loan with slightly 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.