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Remember when the automotive industry was shaken by the steep $6,000 COE plunge on 7 December 2016? Well, the latest COE results from yesterday has once again blown motorists away, this time with a $6,900 slide!
Premiums from Category A hits an all-time-low since November 2010, dropping from $42,900 to $36,001, Category B from $51,000 to $49,000, and Category E from $50,000 to $48,005.
Here are the top three reasons that our drivers' community believes to be the cause of the shocking price drop.
1. Kickoff of Euro 6 Emission Standard
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In our June 2017 COE article, COE Premiums across all categories dropped, with the announcement of the change in emission standards for petrol vehicles.
Since then, there has been a frenzy to clear all non-Euro 6 vehicles, to comply with the new Euro 6 emission standard when it kicked in on 1 September. With this new standard, many popular vehicle make and models are also no longer available in the market.
Many car owners believe that the previous clearance sales of the non-compliant vehicles, coupled with the reduction in choices of vehicle make and models now, are main contributing factors to the massive price drop.
2. Cooling down of Uber and Grab
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Speaking of decline, have you also heard that the two dominant private-hire companies Uber and Grab have slowed down ever since new private-hire regulations began in July? The slowdown has since led to a stop in their fleet expansion, and drivers started returning the cars. In turn, Uber and Grab then got rid of these cars into the used car market.
Besides, Uber might never need its fleet anymore in the long run anyway, as it might be potentially collaborating with ComfortDelGro after all! So besides letting go of their current inventory, this might be another reason why Uber has stopped bidding for the COE, causing the COE Premium to spiral down further!
3. Presidential Elections on the Way!
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Lastly, if you're not aware, the polling day for Singapore Presidential Elections 2017 has been released and it will be conducted on 23 September 2017! That is about two weeks from now.
Now we all agree that if there's one thing the markets hate, it is uncertainty. The more predictable the result is, the better the response might be. Could this be another possible reason for the drop in COE? We'll let you decide.
In the meantime, if you are planning to take advantage of the huge discount in COE premiums before it rises again, click here to find out how much your used car is worth with a complimentary car valuation!
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