COE Renewal Price | PQP Prediction for September 2021
Good news for new car buyers?
Every COE Category for cars has softened compared to the previous bid, where every single Cat, A to E, went up in the final bid of July 2021.
The reaction of the last bid was likely due to news of the COE quota shrinking for the current quarter. We reported about how much it shrunk by in our previous article here.
This below are the latest results:
COE Bidding Result 1st Bid of August 2021
Cat A $45,189
This is a price decrease of $1,821 (-3.87%).
We mentioned a couple of times before that this is the “necessary car” category and the one to enter at if you needed a car (other than used cars).
So this reduction in the latest bid and the recent bidding trend of the last few bids seems to suggest that there might be a true weakness showing here.
You will see a repeated price drop pattern here, where it has gone from $47k level down to $45k level, similar to three bids ago where it did the exact same.
And this has happened in spite of the reduction in COE quota announced for August of -3.14%.
Cat B $56,001
Prices for Cat B closed lower this bid by $3,500 (-5.88%).
Ironically, this mirrors Cat A in that it has gone down again. The fall in price is almost the same was what it went up by in the previous bid (+$3,401).
This is also back to the same level during the 2nd bid of June 2021, where we mentioned the fall was due to car dealers no longer guaranteeing registration before 1st of July to avoid the VES penalty.
It would seem that maybe $56k is the real market level, if no new legislation was affecting the prices. But we also note that this reduction is price is in the face of a COE quota reduction of -4.76%
Cat C $42,589
This is an increase of $3,066 (+7.76%).
This is the only increase of the three here, and by a significant percentage.
Quite obviously, this is due to the sharp reduction on the COE quota of -26.75%, resulting in an average of only 115 COE available for each bid for the August to October 2021 period.
COE Quota Reduction No Effect on Cat A and Cat B?
Yes, that would seem to be the case, that despite the reduction in COE, these two categories went down.
That only shows one thing, that the demand for vehicles in these categories is has gone down faster than the rate of COE quota reduction.
However, note that the reduction of quota for these two are in the below 5% level.
The only one that has gone as expected with the reduction of quota is Cat C, and that is no surprise with the sharp cut, where the reduction is by more than one quarter of the total COE per bid, compared to previous COE quota quarter.
COE Direction For The Coming Bid
This is one time we are not sure on where it’s headed.
There seems to sink in the fact now that the economy (like the Ferrari’s trip through this narrow alleyway) is not as chugging along as well as it was expected. Is it going to go forward, or will it eventually be reversing?
The mood is depressed and the hope of our opening up; that optimism is now dampened with the P2HA, and also the Delta variant increasing its spread worldwide. Will there be further lockdowns in Singapore and elsewhere? We can only wait and see, the possibility is there.
The regress from opening up for business and going back to P2HA is quite a blow for many businesses, especially F&B and transportation as WFH (work from home) continues or is put in place again. We will not even mention tourism, which has remained near dead since this began.
My mention of transportation above means those operating private hire (Grab) are also not earning as much. And this will affect the new registration of (especially Cat A) vehicles for the purpose of use as PHV (private hire vehicles).
In our unofficial top 10 vehicles for Grab & PHV use, according to our casual observation, only the Toyota Wish & Honda Stream is in Cat B. There are no more Wish or Stream for sale as new cars (phased out). The rest are all Cat A, Models such as the Honda Vezel, Mitsubishi Attrage, Mazda 3, Toyota Altis, Prius & Vios.
The Expected Grab New Car Demand Is Reduced
We wrote about this in earlier articles, and how dealers were all set to help out with Grab drivers switch, from old cars on their second COE no longer allowed to drive for Grab, into new cars.
But with the dampened demand for transport due to WFH impacting the earnings of drivers, more of them must be considering whether it is worth to take up more debt (from a new car loan) and whether that can be serviced in the longer term if this P2HA keeps going. This is going to have an effect on Cat A more than any other.
It may still come back again of course, the demand for transport, as soon as we are more open.
And we do see that happening.
Our Covid vaccination programme has already reached a large portion of our population, with time, eventually, we will all be vaccinated, and opening up should be expected.
However, the drivers are probably not seeing that right now. And they are holding back. It’s logical for these drivers to step in only when the earnings are clearly more visible.
Given the above backdrop, this is our prediction for the COE renewal prices for the coming month of September 2021?
COE Renewal Price Prediction for September 2021
We still have an opinion on where the COE renewal prices are going, despite some vagueness from the current situation, we think this will be the coming month’s COE renewal prices.
By the way, this was our previous month’s COE renewal price prediction for August 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 September’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 (Sep to Nov 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.
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 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.