Wednesday, September 10, 2008

COE Prediction - September 2008 2nd Bidding Exercise

Every time the quota premium falls below the $10K mark, bargain hunters will come into the market to pick up the offers from dealers that revise the selling price downwards. Therefore, the Category A COE quota premium will rebound back to previous level. The increasing cost of car usage seems to have detered new buyers of smaller capacity cars resulting in the recent weakness of the quota premium.

For the seasoned motorists in Singapore, it is a difficult change to fully rely on public transport so the demand for Category B COEs will be well sustained. The expected reduction in supply will prop up the Category B and Open COE quota premium.

Prediction on September 10:
Category A: $12,000-13,000
Category B: $14,000-15,000

Verdict on September 17:
Category A: $14,100
Category B: $13,301

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