COE Renewal Price | Prediction For November 2021
We’ve been busy and when LTA dropped the news on the latest COE quota on us all, we didn’t notice till customers called us up to ask ” What shall I do?”.
And so we took a look. Let’s just say it’s not positive news for car buyers and those looking to do COE renewals.
If you have not kept up with the news on what happened, this is the announcement in ST, and also the video report further below by CNA. It doesn’t sound good. But we have a simple solution.
Before going further, let’s take a look at where the first bid for COE ended up in October 2021.
COE Bidding Result 1st Bid of October 2021
Cat A $47,001
This is a price decrease of $999 (-2.08%).
The price is back to just one dollar away from the first bid of September when it was at $47,000. However, this first bid of October which allowed the reduction is price happened before the latest announcement of the sharp reduction in quota.
We suspect the next bid is not going to be so kind to car buyers.
Cat B $70,200
After the big increase of $5,710 the last bid, prices for Cat B continue its rise this bid by another $1,890 (+2.77%).
For Cat B, this is the fourth time price has increased in as many bids. And the price of Cat B was at $56,001 at the start of August just 4 bids ago.
Cat B is now at a gaping $23,199 from Cat A, we do not think the chasm has ever been this wide between the two.
Earlier we had reported that potential buyers would opt for Cat A when the gap becomes too wide, as the $20+k difference is not for any actual part of any new car, only the paper to own it.
But it seems that hasn’t happened yet!
Cat C $38,890
The price is down by $110 (-0.28%) but we think not for very long.
Despite the low number of COE available for Cat C it has continued the slide in prices.
Cat C has gone down for this and also the previous three bids.
*Could this be a possibility for Cat A and B also, that prices decrease as the COE quota decrease?
For the August to October 2021 period there was a reduction in Cat C quota for the current quarter (-26.75%), with only 230 COE each month . Latest announcement is that the quota will be cut even further.
And we ask again, could this be a weakening in demand, like Cat A, for commercial vehicles?
October’s Second Bid is Just Tomorrow, What Will We See?
Some of these questions might be floating through your head.
Cat A and Cat C Hardly Affected By COE Reduction
While the quota was cut for the August to October 2021 period, Cat A has remained mostly unchanged, and Cat C is actually a few hundred lower than it was previously.
We see at the end of July, Cat A was at $47,010 and currently at $47,000. Cat C was at $39,523 end July, and now at $38,890.
So now that we have a sharp reduction in the COE quota for November 2021 to January 2022, we can have hope that the prices will stay also the same, or even reduce?
Before you think quota does not have any effect on the pricing for COE, see table on this page for the actual figures on Cat A and Cat C COE reduction.
Why There Was Not Much Of An Effect on Cat A and Cat C
The Cat A reduction was a relatively small one compared to what was announced for the upcoming COE quota quarter starting in November 2021.
So, the relatively unchanged prices could be due the rather small reduction in the COE quota.
With the demand remaining also pretty weak for the lower priced cars, and the restrictions that happened during these months, that probably had a dampening effect on car sales.
Cat A has been finely balanced to end up at about the same price where it started. (We are not saying that was the intention of LTA when they announced the quota.)
And the Cat C reduction? Yes, that was big and sharp and significant, but don’t forget, Cat C has a natural outlet for COE which buyers can go for, as an alternative for getting COE by bidding.
ETS (Early Turnover Scheme) seems like it has gone into overdrive the past few months.
There have been more than twice as many commercial vehicles being registered in the past 3 months based on ETS rather than bidded COEs.
Cat C demand is not weak with LTA reporting that 1,469 Cat C vehicles were registered in the July to September period compared to the total COE available of the current period standing at only 692. (Reporting period of registrations is one month apart from the COE quota months – but they are both a 3 months long period).
However, ETS would be a viable option only where there are available old vehicles ready to be scrapped or exported.
As the vehicles on the road move towards becoming a much newer fleet due to the ongoing ETS, the increasing scarcity of older commercial vehicles would make ETS less viable in the future for registering brand new vehicles and would then place more demand onto Cat C bidding.
Up to a certain point, it will no longer not make economic sense to deregister a relatively new vehicle for brand new one.
How About Cat B?
Cat B caters to a more well of portion of car buyers, and they tend to be able to follow the prices upwards should there be the need by the buyers for the vehicle.
We have seen how in the past months that Cat B has risen when the quota has gone down by -4.76%.
This upcoming quarter starting in November, the drop on COE quota will be a test of how far the prices can go for Cat B COE.
Because, this is how much the COE quota is shrinking.
COE Renewal Price Prediction for November 2021
Click the below image 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 October 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 to access the info)
For November’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 (Nov 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.