COE Renewal Price | PQP Prediction for April 2020
With the recent $30k level COE for both the Cat A and Cat B COE prices in the first bid of February, many people were drawn back into the showrooms to be tempted by the new metal and some have ended up purchasing cars. This is evident in the fact that the second bid of COE for February has gone upwards after the significant fall of the first bid.
Coming into March 2020, the first bid has maintained Cat A and B prices showing that the spillover showroom bookings are still carrying on into March, but will the support for COE continue? How is all this going to affect the COE in the coming bid and what effect will this have on the PQP for those looking to do COE renewal loans in coming month of April 2020?
Before we go futher, these are the COE prices in the latest bid in early March 2020
COE Bidding Result | 1st Bid March 2020
Cat A $32,699
Down by a small $300 (-0.92%) compared to 2nd bid February 2020. Total bids received 1,436 (up from 1,204 or 19.26% compared to same time last month) with 973 successful bidders.
Cat B $32,801
Down by $88 only (-0.25%) compared to 2nd bid February 2020. Total bids received 1,347 (up from 1,173 or 14.83% compared to same time last month) with 987 successful bidders.
Cat C $24,202
Down by $799 (-3.20%) compared to 2nd bid February 2020. Total bids received 504 (unchanged) with 315 successful bidders.
Increase In Number of Car Buyers In February
The increase in the number of car buyers after the COE fall in early February is obvious when we look at the number of COE bids submitted – both Cat A and B registered a significant increase in sales closed, with Cat A leading the increase by having near to one fifth more sales closed when compared to January.
However, car buyers that come as a result of a COE dip did not all get their wish of a new car – the signed on the dotted line at a lower price so dealers may not bid high for them and were unable to secure the COE when prices rose again in the second bid. Cat A has 463 unsuccessful bidders and Cat B has 360 who will have to continue bidding in the next bidding exercise.
For Cat A, that 463 bids carried over is close to half of the available quota at the next bid and for Cat B, 360 bids carried over is about one third of its quota.
Followed By Slower Sales In March
While the above exerts upward pressure on COE prices, the stock market crash – biggest fall since 2008 – is going to be a dampener on sales. It’s so bad that a new name has been given to the recent stock plunge – Black Monday.
Cat A and B will both be hit, with Cat B going south more – this is the feeling showroom staff are getting. Those with exposure to stocks will definitely not be jumping into a new car at this time while others in more stable jobs are also holding back, perhaps looking for a chance to purchase when the COE has fallen even further.
Given the above developments and the continuing Covid-19 situation going into the second bid of March 2020, these are the prices SG Cash N Cars is expecting for the coming April COE renewal PQP.
Prediction for COE Renewal Price April 2020
Cat A $32,940
Down by $267 (-0.81%), compared to PQP for March 2020.
Cat B $33,816
Down by $1,600 (-4.52%) compared to PQP for March 2020.
Cat C $24,587
Up by $200 (+0.82%) compared to PQP for March 2020.
Cat A Owners May Be Disappointed While Cat B Owners Enjoy Savings
The small drop in COE renewal prices for those Cat A cars which are due for renewal in April may be disappointing for those car owners. Although the Cat A enjoyed that sharp reduction of $5000 dollars in the first bid of February 2020, we are reminded here how little that effect is when that is just one bid out of six bids that are counted for the April PQP for Cat A.
Cat B owners though, would be happier with our four figure forecasted reduction. Including last month’s drop in Cat B, and with this projected price drop in Cat B for the month of April, total savings would be a not insignificant figure of above 10% savings compared to February 2020’s COE PQP price. If we consider the three months in a row reduction (two actual and the one predicted above), we are looking at a total savings for April 2020 renewal of $5,648.
So, in case you are tempted to renew early, see how when there is a downtrend, you could save many thousands with our advice. Do contact us for more information – this PQP monitoring service is free for customers who use our COE renewal loan service.
PQP monitoring helps you to know when to renew at a good time, and we have customers sign up months in advance to take advantage of our forecast and monitoring.
If you are interested in COE renewal loan application with PQP monitoring, do click on the WhatsApp button to contact us with your require or use contact form at the bottom of the page. We are happy to assist!