COE Renewal Price | PQP Prediction for October 2021
So the first bid of September 2021 was a three week gap bid, meaning that prices tend to go upwards on those bidding days. Why is this so? We mentioned this in our earlier article, where were reported on the September COE renewal results.
And so, it is not unexpected that this early bid of September rose.
How did it go? Let’s take a look.
(If you are looking for the second bid of September 2021, and October COE renewal pricing, they are out – click here)
COE Bidding Result 1st Bid of September 2021
Cat A $47,000
This is a price increase of $311 (+0.67%).
This we consider to be a very mild increase, given that it was a three week gap between this first bid of September and the last bid of August 2021.
This we take to be indicative of a real weakening in demand for cars in this basic car category. And given this soft showing, we would not be surprised that Cat A showed some downside in the upcoming second bid of this month.
Cat B $62,600
Prices for Cat B rose this bid by $1,599 (+2.62%).
For Cat B, this is also not unexpected because of the three week gap, and the rise has a bit more meat in it than Cat A.
We mentioned a month ago, in our report on the first bid of August, that “maybe $56k is the real market level, if no new legislation (additional VES penalties for large Cat B cars) was affecting the prices“.
And Cat B has kept above this level since then, now moving into the $60k level.
Cat C $40,001
This is an decrease of a very small $9 (-0.02%)!
In fact, I would call this as Cat C staying at the same price.
Reminder: there was a sharp reduction in Cat C quota for the current quarter (-26.75%), with only 230 COE each month for the August to October 2021 period.
But that the price has not shot up by much, except for the very first bid of August 2021 of this current quarter, thereafter it has fallen back to $40k level and remained there for the last two bids.
Could this be a weakening demand also, like Cat A, for commercial vehicles?
So Will COE Continue to Rise?
Both Cat A and Cat B are up, and Cat C hardly moved.
What can we expect next – Cat A
The very mild increase given the extra time for dealers to obtain orders for the first bid of September means what we have earlier felt was coming is probably here, that Cat A is having weak demand.
This weakness is there, even as the government is maintaining the openness and not going into P2 Heightened Alert to slow things down and F&B remain open for business.
We mentioned before how F&B being closed had an effect on car shopping but now that things remain open and the bidding still shows not much strength?
However, with the recent big increase in Covid case infections (see below), and given the likelihood of catching this virus on public transport is higher now than ever before, will this push borderline car buyers into making a purchasing decision?
We believe many would be considering a private mode of transport.
However, on the other side of the balance would be our high percentage of population already vaccinated and definitely, also the weak economic sentiment of the current time.
What can we expect next – Cat B COE
Cat B has had more of a rise than Cat A this round.
However, we feel it is also restricted in a sense in the magnitude of its rise. Good for car buyers who are firmly in Cat B I suppose.
What we think is this: where the gap between the categories gets a bit far apart, then the rise in Cat B may be slowed as consumers consider it not worth to spend that much extra and just opt for a Cat A vehicle.
There are many capable and well made Cat A cars nowadays, and they are certainly a viable alternaitive for car buyers initially looking at a Cat B car.
So a weak Cat A slows the number of bids for Cat B as there would be fewer Cat B buyers to push up prices.
What can we expect next – Cat C COE
As for Cat C remaining the same… If demand has not weakened – and we think not, with online shopping deliveries being steady and or growing – the demand for commercial vans might have been once again filled in part by the ETS (early turnover scheme), leading to standstill on the Cat C prices, despite lower COE quota.
The more commercial vehicles are being registered on ETS, the less of them are “scrapped”. And that means that in the next quarter to come, the number of Cat C COE would again shrink.
However, LTA has moved to disallow the use of ETS to register for diesel vans, even Euro 6 ones. So, incoming to the market are the petrol vans and we see these gaining some ground, but not much, as heavily used vans would incur much more in fuel costs if run on petrol.
This move may push up Cat C as time goes by – as growing number of ETS means less COE available for recycling into the new COE quota.
This practice is encouraged by commercial vehicle dealers who still accept old vans eligible for ETS as a trade-in benefit, even if the customer is purchasing a diesel one.
COE Renewal Price Prediction for October 2021
Click on the below to find our our opinion on what next month’s COE renewal price will be for Cat A to Cat C.
By the way, this was our previous month’s COE renewal price prediction for September 2021. How close were we and were we useful for those customers who had signed up with us? (Key in the password in the title access the info)
For October’s COE renewal prediction, WhatsApp us to have a chat and ask for the password and click the below image to go to the page for the info you are looking for.
We will ask for your car info, to assist you with COE renewal loan and PQP monitoring.
What Is Smart To Do Now If I My Vehicle COE is Expiring Soon (Oct to Dec 2021)?
Given the situation that COE Renewal PQP prices are changing every month, you know that there is an opportunity to renew at lower price than your expiry month. That’s the wonderful thing about our PQP monitoring!
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.
COE Renewal With A Difference
We have helped hundreds and we will also help you also 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.