Unfortunately, we do think so, especially for Category A.
PQP for COE renewals come January 2018 is going to be higher than December 2017 unless the second bid coming for Cat A cars in December is lower than $36,000, which was a multi-year low set in the month of September.
Since the next months PQP is always calculated from three previous month’s bids, January’s renewal price will be calculated from COE bids in October, November and December of 2017. What’s missing is the $36,000 COE bid that was in September of 2017, which will fall out from the average of the last 6 bids.
So if you are a Cat A car owner with a January 2018 expiry date, do consider taking up renewal in the month of December 2017. After that and you guys are going to lose out on that dip in the blue line you see in the above graph.
Same thing is happening for Cat B, we are going to lose two bids from September that are in the $49k range, to almost certainly be replaced by bids in the $53k range for the month of December bids.
So yes, picture seems to point up for January 2018 COE renewal!
Contact us at 92782880 for more information on car financing.