COE Renewal Prices | April 2020 PQP Results
These are the results anxious car owners with expiry in April/May waiting to apply for COE renewal loan want to know, is it better to apply for the loan in March or April. Or maybe wait till May?
(Edit: Latest update news is that COE bids in April are canceled for the whole month and resumption of bids is not determined yet, you may want to read our article below LTA Stops COE Bidding for April on this and it’s effects on PQP pricing)
Let’s look at the latest COE bidding results for the second bid of March 2020 which will the fix the PQP prices for April. (Note: April COE bidding does not change the prices for April PQP as the PQP is made up of the average COE prices of the previous three months)
COE Bidding Prices for 18th March 2020
Cat A $31,210
Down by $1,489 (-4.55%) in the latest bid.
Cat B $30,012
Down down, and by a larger (and for COE renewal car owners, happier) $2,789 (-8.50%) compared to the first bid of this month.
Cat C $22,002
Down, by a significant (-9.09%) or $2,200.
We were SO right about the Cat B sales in our prediction article that this is one of those rare bids where the Cat B COE is lower than the Cat A, and lower by more than $2,000!
So this is happiness for those who bought cars, they should have all secured their cars if they have placed a deposit for one before the dealers cut off date. If your dealer did not secure you a COE in a falling COE price environment, maybe you should call them up to ask why! And also those who are looking to renew, is it a time to rejoice?
Everything As Expected!
Well yes! Unlike some other months where we have seen bid prices drop but renewal prices rise, this month we see a drop in COE bid prices and a corresponding drop in COE renewal PQP prices in each category. So come, I clap for all of you!
And here are the final figures for renewal in April 2020.
Cat A $32,875
Down by $332 (-1.01%) in the month of April compared to month of March.
Cat B $33,568
Down by a significant $1,848 (-5.22%) compared to the month of March 2020.
Cat C $24,271
Down by $116 (-0.48%) for the month of April 2020.
So it’s happy times for those looking to renew COE and especially for those who have Cat B cars, which has fallen by a tidy sum.
Wiser Choice & Opportunities In Current Situation
Taking a renewal instead of purchasing new looks to be the wiser choice in such uncertain times.
With the current economic uncertainty that was present even before the Covid-19 situation and one that is now exacerbated by it, it has become commonplace for cars to be renewed instead of scrapped if they remain in good shape at the end of 10 years. And more people are choosing to renew their cars for 10 years instead of 5, which is a hedge against high COE prices that may be there at the end of their short 5 year renewal.
And with the current situation and messy stock market dominated by the bears having a party, we have a customer who can pay the full sum for COE renewal in cash, but told us he wants to take a 100% COE renewal loan, doing this, for the sake of conserving his funds to buy into the stock market when such a rare opportunity presents itself. Is it a wise choice?
Wise if he eventually makes money but only time can tell and we hope he picks the right stocks.
Regardless, we recommend always keeping some money on hand, there may be unexpected expenses and there are always opportunities when you look out for them, especially in such times as these.
For COE renewal loans, we have helped many, including those with no proof of income, or have a less than stellar credit score. Contact us with the form on the right side or for mobile users, at the bottom, and we will get back to you soonest. Or click WhatsApp and let us know your request, we will assist where we can!