November PQP, the year end is coming and it is closing in on Chinese New Year where some expect more new car demand, possibly pushing up COE levels and causing the PQP to rise. In the next couple of months, that’s when orders would come in for those who expect to be driving around in brand new cars for the Chinese New Year.
Our customers have been calling up and asking for early COE renewals, some with vehicles expiring in 2019, but who want to do their renewal in October 2018 because they feel this is the low point. Are the right? Will the PQP rise after October?
(By the way, we have this interesting feature called PQP monitoring when you renew your COE with us – many of our customers who wanted to renew early have benefited by thousands of dollars when put on our PQP monitoring. Contact us here to find our more)
Overall Car Buying Sentiment Remains Largely The Same As Previous Month
And sales are not seeing any jumps yet, with no significant mass market car model launches – it’s those mass volume cars that really drive the COE not an exotic car here and there. VES has had a dampening effect on sales, with a number of mass market models being penalized $10,000 to $20,000 – like the new Suzuki Swift Sports attracting the maximum penalty under VES and Nissan Qashqai and X-Trial at $10,000 more.
And so, our feeling and prediction for the November 2018 PQP is this:
Cat A $30,244 – $40 Down from October PQP
Cat B $32,120 – $159 Down from October PQP
Cat C $28,650 – $747 Down when compared to October PQP
Now this is the interesting part, from what we see in the charts, it seems to have eased off a series of months of sharp declines now.
If we recall, Cat A was $38,214 for June, and Cat B was $37,906 at the same month. They are currently down by almost $8k for Cat A and $5.6k for Cat B. The fall in prices were sharper in the earlier months from June to September 2018 but has since eased off and we see a soft landing at the moment.
When it comes to an area of gradual change and the reduction in PQP pricing has slowed dramatically, could it also signify a rise in the coming months down the road?
That’s anyone’s guess. Let us know how you feel in our Facebook post referencing this article.