21-04-2011, 06:43 AM
Apr 21, 2011
Mixed results in latest COE bidding
CERTIFICATE of entitlement (COE) prices ended mixed in the latest tender as aggressive bids from taxi firms and brisk car sales over the weekend countered worries about production disruptions in Japan.
COE premiums for cars up to 1,600cc ended 1.8 per cent higher at $44,000, with strong last-minute bids from taxi firms. SMRT and Trans-Cab each put in bids of $45,000 to secure 30 and 90 COEs respectively.
COE premiums for cars above 1,600cc rose 3.3 per cent to close at $56,801 on the back of improved car sales.
Dealers selling bigger cars posted better bookings following three consecutive dips in COE prices. But prices for open COEs, which can be used for any vehicle type but are mainly used for bigger cars, slid by 1.9 per cent to finish at $56,001.
Mr Ron Lim, general manager of Nissan agent Tan Chong Motor, said this could mean the market still has a supply of open COEs, with some expiring soon.
Open COEs are transferable but must be used within three months. They are often secured by speculators who resell them at a profit. Open COEs expiring soon include those clinched at $62,000.
The biggest drop yesterday was posted in the commercial vehicle category. Prices dived 15.2 per cent to end at a 14-month low of $23,900.
Motor traders said this could be because some dealers are still facing uncertainty over supply in the coming months. The world's biggest vehicle maker, Toyota Motor, has resumed operations at all its plants in Japan, but they are running at half capacity as there is still a shortage of several components.
Mr Lim noted that there is also an expectation of more commercial vehicle COEs in the next six-monthly quota, starting in August. He said this was due to an unexpected surge in the number of older vans, trucks and lorries being scrapped.
In the first quarter, more than 1,800 such vehicles were deregistered, compared with fewer than 1,300 in the October to December period last year.
Motorcycle premiums ended 0.5 per cent higher at $2,502.
CHRISTOPHER TAN
Mixed results in latest COE bidding
CERTIFICATE of entitlement (COE) prices ended mixed in the latest tender as aggressive bids from taxi firms and brisk car sales over the weekend countered worries about production disruptions in Japan.
COE premiums for cars up to 1,600cc ended 1.8 per cent higher at $44,000, with strong last-minute bids from taxi firms. SMRT and Trans-Cab each put in bids of $45,000 to secure 30 and 90 COEs respectively.
COE premiums for cars above 1,600cc rose 3.3 per cent to close at $56,801 on the back of improved car sales.
Dealers selling bigger cars posted better bookings following three consecutive dips in COE prices. But prices for open COEs, which can be used for any vehicle type but are mainly used for bigger cars, slid by 1.9 per cent to finish at $56,001.
Mr Ron Lim, general manager of Nissan agent Tan Chong Motor, said this could mean the market still has a supply of open COEs, with some expiring soon.
Open COEs are transferable but must be used within three months. They are often secured by speculators who resell them at a profit. Open COEs expiring soon include those clinched at $62,000.
The biggest drop yesterday was posted in the commercial vehicle category. Prices dived 15.2 per cent to end at a 14-month low of $23,900.
Motor traders said this could be because some dealers are still facing uncertainty over supply in the coming months. The world's biggest vehicle maker, Toyota Motor, has resumed operations at all its plants in Japan, but they are running at half capacity as there is still a shortage of several components.
Mr Lim noted that there is also an expectation of more commercial vehicle COEs in the next six-monthly quota, starting in August. He said this was due to an unexpected surge in the number of older vans, trucks and lorries being scrapped.
In the first quarter, more than 1,800 such vehicles were deregistered, compared with fewer than 1,300 in the October to December period last year.
Motorcycle premiums ended 0.5 per cent higher at $2,502.
CHRISTOPHER TAN