COE Renewal Price | PQP Prediction for February 2020
The prices for COE bidding have just ended yesterday, and this is an interesting time of the year where this is probably the last bid for dealers to secure COE for those who are awaiting car deliveries before the Chinese New Year. Yes I know there is one more bid, but that for PI cars is a bit close to New Year’s eve, where most of the Chinese Malaysian staff are also away and it is a going to be a big rush to prepare paperwork and ready the car for delivery. However, large organised car distributors would still be able to deliver in a day. So we do feel this bid will be the “hotter” one than the next on 22nd of January, but just slightly.
It should then come as no surprise that the COE bids have risen, so that the vehicles can be delivered. But from the strength of that rise we can get a feel of the how bullish or bearish the bidding is, but this has to be read together with the COE quota available, that is, the number of pieces of COE there are in this bid.
This article focus is on the bidding result in January 2020 but for COE renewal results for January 2020, click here. Yes, the renewal price is different for latest COE bidding prices.
COE Bidding Result 1st Bid January 2020
Cat A $35,320
Up by $2,431 (7.39%) compared to 2nd bid December 2019. Total bids received 1,450 with 1,026 successful bidders.
Cat B $37,109
Up by $1,109 (3.08%) compared to 2nd bid December 2019. Total bids received 1,229 with 1,021 successful bidders.
Cat C $24,402
Up by $1,202 (5.18%) compared to 2nd bid December 2019. Total bids received 457 with 321 successful bidders.
It is interesting to note that the number of COE released for bidding in this pre-Chinese New Year exercise is much lower than the number of available COE in the same pre- Chinese New Year bidding exercise at end January of 2019 – where Cat A had 1,818 & Cat B had 1,244 & Cat C had 344 available for the public bid.
This could have resulted in a large percentage increase in the bidding prices across catagories as compare to last year, but and just but, interesting to dream, it could have been $1 COE for both Cat A and B if the same number of COE were available for bidding. This happens when the number of bids is less than the number of COE available. What a Happy Chinese New Year it would be for those who booked cars!
How Will Next PQP for COE Renewal Be Like?
The rise in the COE levels is expected this bid, but the next one? We expect COE bidding to be slightly cooler for next bid for above mentioned reason (first para), but we could also be wrong as the margin on this one is a bit close to call and depends on how many PI are able to process cars with just one day of time for delivery.
The next interesting thing that is happening is that COE for Cat A and B are less than $2k different from each other – this usually means Cat A car buyers will start to consider and opt for the larger cars, and push Cat B upwards. And, the fact that most big cars are sold by established official distributors who have no problems registering and delivering vehicle in one day flat, means Cat B may still push higher next bid so they can deliver in time for their customers before the festivities.
Do you feel the next Cat B is still going up? Let us know!
Given the above, here is our prediction for all categories of COE coming up for renewal in February.
Prediction for COE Renewal Price February 2020
Cat A $33,203
Up by $835 (2.57%) compared to PQP for January 2019.
Cat B $38,336
Down by $1,127 (2.85%) compared to PQP for January 2019.
Cat C $24,267
Down by $618 (2.48%) compared to PQP for January 2019.
As always, note these are predictions, we seldom get it wrong in terms of the direction of movement, but you have been warned. There is only one way to be sure of getting that COE at the most opportune time, that is to register with us for the COE renewal loan for immediate action when the PQP moves. Nothing beats being prepared so you land the best deal on your renewal, not just on the PQP price, but also on the kind of loan – yes it matters.
Click on the WhatsApp button to link to us at any time to find out more how we can help you. And a wishing one and all a Prosperous New Year!