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09-06-2011, 06:54 AM
Wooo hooo! A simple small car like Latio now costs $100,000! Well done Singapore! Another for the record books - world's most expensive cars! 
Jun 9, 2011
Big jump in Category A COE premiums
Mass market cars like Nissan Latio now cross $100,000 mark
By Christopher Tan
CERTIFICATE of entitlement (COE) prices rose sharply at the latest tender yesterday.
Motor traders said the rise was fuelled mainly by improved buying sentiment in recent weeks and concerns over another impending cut in the COE supply from August.
The premium for Category A COEs (cars up to 1,600cc) was $53,390 - a 13.6 per cent increase and just a whisker away from the all-time high of $56,600 in October 1994.
Similarly, COEs for Category B cars (above 1,600cc) rose by 11.9 per cent to reach $63,000, among the highest in the past six months.
The Open Category COEs, however, posted a relatively tame increase, rising by 9 per cent to $62,000. These COEs can be used for any vehicle type, but end up mainly for cars.
Tan Chong Motor general manager Ron Lim attributed the sharp increase in Category A COEs to stronger sales recorded by European premium cars, in particular the Mercedes-Benz C180.
'They are doing well, and they have the profit margin to bid high,' said Mr Lim, whose company sells Nissan vehicles.
With the COE supply down sharply this year, he said, it was only a matter of time that Category A certificates would breach the $50,000 mark.
'But we didn't expect it so soon,' he added. 'It looks like it will now head for the record.'
Mr Jimmy Lim, sales manager at Vantage Automotive, the agent for Ford and Peugeot, said the unusual three-week break between COE tenders and brisk sales at showrooms also contributed to the higher premiums.
Usually, the break is two weeks. A longer break means dealers have more time to collect orders, and more orders mean more aggressive bids.
Mr Lim said industry players are also bracing themselves for another cut in the supply of COEs, which is expected to come on the back of fewer vehicles being deregistered in recent months.
The supply of COEs, which are vehicle ownership entitlements that are auctioned twice monthly, is determined largely by the number of vehicles taken off the road. 'It is going to be another drastic cut, especially for Category A,' he said.
With the spike in COE premiums, prices of mass-market cars such as the Toyota Corolla Altis and Nissan Latio have now crossed the $100,000 mark.
Meanwhile, commercial vehicle and motorcycle premiums also chalked strong double-digit increases.
Commercial vehicle COEs rose by 26.2 per cent to $29,006, while motorcycle COEs rose by 23.7 per cent to $2,491 - both also among the highest in recent months.
christan@sph.com.sg
Jun 9, 2011
Big jump in Category A COE premiums
Mass market cars like Nissan Latio now cross $100,000 mark
By Christopher Tan
CERTIFICATE of entitlement (COE) prices rose sharply at the latest tender yesterday.
Motor traders said the rise was fuelled mainly by improved buying sentiment in recent weeks and concerns over another impending cut in the COE supply from August.
The premium for Category A COEs (cars up to 1,600cc) was $53,390 - a 13.6 per cent increase and just a whisker away from the all-time high of $56,600 in October 1994.
Similarly, COEs for Category B cars (above 1,600cc) rose by 11.9 per cent to reach $63,000, among the highest in the past six months.
The Open Category COEs, however, posted a relatively tame increase, rising by 9 per cent to $62,000. These COEs can be used for any vehicle type, but end up mainly for cars.
Tan Chong Motor general manager Ron Lim attributed the sharp increase in Category A COEs to stronger sales recorded by European premium cars, in particular the Mercedes-Benz C180.
'They are doing well, and they have the profit margin to bid high,' said Mr Lim, whose company sells Nissan vehicles.
With the COE supply down sharply this year, he said, it was only a matter of time that Category A certificates would breach the $50,000 mark.
'But we didn't expect it so soon,' he added. 'It looks like it will now head for the record.'
Mr Jimmy Lim, sales manager at Vantage Automotive, the agent for Ford and Peugeot, said the unusual three-week break between COE tenders and brisk sales at showrooms also contributed to the higher premiums.
Usually, the break is two weeks. A longer break means dealers have more time to collect orders, and more orders mean more aggressive bids.
Mr Lim said industry players are also bracing themselves for another cut in the supply of COEs, which is expected to come on the back of fewer vehicles being deregistered in recent months.
The supply of COEs, which are vehicle ownership entitlements that are auctioned twice monthly, is determined largely by the number of vehicles taken off the road. 'It is going to be another drastic cut, especially for Category A,' he said.
With the spike in COE premiums, prices of mass-market cars such as the Toyota Corolla Altis and Nissan Latio have now crossed the $100,000 mark.
Meanwhile, commercial vehicle and motorcycle premiums also chalked strong double-digit increases.
Commercial vehicle COEs rose by 26.2 per cent to $29,006, while motorcycle COEs rose by 23.7 per cent to $2,491 - both also among the highest in recent months.
christan@sph.com.sg
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