Well here we are after the first bid of the month of April – and we do get a number of calls asking how that has affected the PQP.
Short answer is – nothing has happened! Yet. That’s because there is no 1st half of May PQP and then second half May PQP. There is only one May PQP.
We are in the month of April and therefore the PQP in April is already announced for all categories and it is fixed. It does not vary nor change anymore, regardless of the COE bidding results for April. The bid results for the month of April will constitute the figures that go into the May PQP.
So, onto the main topic of why you guys are here – you want to know what the people who work with PQP everyday think of the direction of the PQP in the coming month of May 2018. This is our prediction:
May 2018 PQP Cat A $37,940
May 2018 PQP Cat B $38,758
May 2018 PQP Cat C $35,695
The above prediction is based on the assumption that there will not be major unexpected changes in regulations (which we have had this year and will have again second half of the year) and no major changes in the volume and therefore demand for new cars.
However, there is one factor in favour of new cars, and that is the COE has been at a low level that is attractive to car buyers, which may have increased showroom traffic and may have boost sales. The flip side is customers are not in a rush, as many seem to see even weaker COE prices in the coming months due to the overall soft economic situation, and many who enter the showrooms are not signing on the dotted line.
There is one factor though, that many potential buyers may be unaware of, and that is the new change to include particulate matter (PM) into the new VES criteria to make it even stricter (coming soon!) This will result in many current models paying extra registration taxes due to the VES penalty, car distributors are aware of this and many with existing orders in hand will try to obtain the COEs for delivery before the implementation of this stricter criteria and this may mean more spirited bidding the the coming months leading up to 1st of July.
We shall see what the result of these factors will be on the second bid of April. If your beloved car is coming up for renewal, happy predicting and watching!
Remember, if you need our assistance with PQP monitoring, advice on when it is best to jump in, and obtaining vehicle finance, do give us a ring at 92782880 or contact us here using the form on the right.