The previous COE results on 17 May saw an unexpected dip in premiums, but drivers hoping for continued relief from sky-high car ownership costs in Singapore will be disappointed.
Indeed, the latest round of COE prices, released on 7 June, saw premiums rebound across the board (except for Cat E), proving that May’s results were merely an anomaly rather than the start of a much-awaited downtrend.
Related: Average Cost of COE
Latest COE Results in Singapore (7 June, 1st Bidding)
| COE Category | Premium | Change vs last bidding | |
|---|---|---|---|
| Cat A (cars ≤ 1600cc & 130bhp, or 110kW) | S$98,001 | Up S$6,001 | |
| Cat B (cars > 1600cc & 130bhp, or 110kW) | S$120,702 | Up S$7,668 | |
| Cat C (Goods vehicles and bus) | S$81,801 | Up S$4,300 | |
| Cat D (Motorcycles) | S$11,001 | Up S$433 | |
| Cat E (Open; All except motorcycles) | S$120,889 | Down S$4,111 | |
| Source: motorist.sg | |||
As shown in the table above, COE premiums for Cat A vehicles – arguably the largest group of drivers here – has gone up to S$98,001. This is worrying, considering that the all-time record high of S$103,712 was seen just two months ago on 19 April.
It’s the same story for Cat B vehicles, for which COE prices are back at the same record-high levels of around S$120,000, last seen on 19 April as well.
Since the majority of vehicles driven on the roads in Singapore are private cars, we can take Cat A and Cat B premiums as a rough benchmark for the market as a whole. And judging by recent results, things aren’t looking good for drivers hoping for lower car ownership costs.
Related: Is Renewing Your COE Worth It?
Why COE Prices Remain High (and Will Likely Remain So)
In May this year, the Land Transport Authority (LTA) announced a one-time adjustment to the COE quota in response to heightened volatility of COE premiums. The number of Certificates of Entitlement would be increased over the next few quarters.
With more COEs to go around, the price of COEs should go down. But we already know that’s not the case. But why?
One possible reason could be that the demand for private cars in Singapore remains overwhelmingly high, and the increase in quota is insufficient to bring prices down.
This bears out, judging by how each of the last three COE biddings has been overscribed, as shown below.
| COE bidding | Quota vs bids received | |
|---|---|---|
| Jun, 1st bidding | Cat A: 581 vs 881 Cat B: 454 vs 719 |
|
| May, 2nd bidding | Cat A: 596 vs 936 Cat B: 480 vs 713 |
|
| May, 1st bidding | Cat A: 474 vs 663 Cat B: 410 vs 513 |
|
| Source: motorist.sg | ||
Perhaps more worryingly, COE premiums are likely to remain elevated for the next few years.
This is because the LTA has declared a zero-growth rate approach to private vehicle ownership in Singapore. Up till 2025, the number of private vehicles registered in Singapore will remain at the status quo.
This means that COEs will likely remain oversubscribed for the imminent future, which means drivers will have to continue grappling with exorbitant COE premiums.
Related: COE Is Reaching Another New High, Do You Know How To Lower Your Car Loan?
How to Bid for COE in Singapore
You can submit your COE bid using any DBS/POSB ATM machine. Those with a corporate account bidding on behalf of their companies can submit their COE bids using Internet Banking (DBS, UOB or Maybank).
Here are the steps to follow:
1. Make sure you have sufficient funds in your account to cover:
- Bid deposit: S$10,000 (for Cat A, B, C and E), S$1,500 (for Cat D)
- Bank admin fee (S$2 to S$10, depending on bank)
2. You will need to have one of the following IDs in order to make a bid. Be sure to use the correct ID as the bid will be registered accordingly.
- Singapore NRIC
- Foreign Identification Number (FIN)
- ACRA Number
- Unique Entity Number (UEN)
3. Indicate your reserve price.
- From S$1 up to the maximum sum you are willing to pay for your COE
- When the current COE price exceeds your reserve price, you must revise your bid if you want to continue bidding
4. Pay bid deposit and admin fee.
- Once your bid is submitted successfully, your bank will automatically deduct your bid deposit and admin fee
5. Receive your acknowledgement code.
- You will receive a 6-digit acknowledgement code. Use this code to enquire on the status of your bid or to revise it.
6. Check your bidding outcome.
- Check the result of your COE bidding over at the OneMotoring website.
- If your bid is unsuccessful, you can try again at the next bidding exercise.
- Bidding exercises are held twice every month. You may check the schedule of COE bidding exercises to plan your vehicular purchase.
Find the Cheapest Car Loans in Singapore
3 Best Car Loans in Singapore
Best New Car Loan – DBS Car Loan
DBS Car Loan offers a competitive interest rate of 2.78% per annum, which is among the lowest rates available on the market at the time of writing.
What sets this loan apart from the competitions is the S$300 rebate if you finance your car loan directly with the bank, which gives you just that little bit more value.
Also, if you’re an existing DBS or POSB customer, you can seamlessly and conveniently apply for your car loan online in minutes.
Best Used Car Loan – SGcarmart Car Loan
For used cars, one of the best loans available comes from car marketplace SGcarmart. The portal is offering interest rates starting from just 2.28% per annum, which is a full 0.5% lower than other lenders.
This may be a small figure at first glance, but given the exorbitant car prices (yes, even second-hand ones) these days, can translate to several hundred dollars of savings every month.
And you don’t even have to haggle over prices at a dusty car showroom – you can apply for this used car loan online and receive your loan approval via email.
Best Electric Car Loan – OCBC Eco-Care Car Loan
If you’re committed to a greener lifestyle, you’re probably looking to get an electric vehicle. To help you adopt a greener lifestyle, the OCBC Eco-Care Car Loan offers a breezy interest rate of 2.48% per annum.
This is lower than that for petrol cars, and will come in handy for managing your car ownership costs.
If you’re thinking of getting a Tesla EV, you’re in for a treat. The bank is now offering a promotional package consisting of 1.9% per annum loan interest rate, along with charging credits equivalent to approximately three months of usage.
Condominium dwellers will also receive free EV charger installation, so there’s no need for any added costs on your part.
Looking for more great car loans? Read our picks for the Best Car Loans in Singapore 2023 to help you find the most value-for-money motor loan.
Read More:
The article originally appeared on ValueChampion.
•
ValueChampion helps you find the most relevant information to optimise your personal finances. Like us on our Facebook page to keep up to date with our latest news and articles.
•
More From ValueChampion:
•
Best Cheap Car Insurance in Singapore 2023
Average Price of Car Insurance 2023
Average Cost of Car Loans 2023
Read also:Â
Is It Time To Invest in Bonds for Passive Income Again?