Sales spike after Cat A COEs drop to 7-year low
Customers at the Nissan Tan Chong Motor Sales showroom in Ubi. Photo: Jason Quah/TODAY
SINGAPORE — Since the Certificate of Entitlement (COE) price for small cars plunged to its lowest in almost seven years, sales have increased between 30 and 40 per cent, said dealers TODAY spoke to, with one seeing a 300 per cent jump.
Tan Chong Motor head of sales and marketing Ron Lim said the Nissan agent has seen a threefold increase in overall sales, mainly for Category A cars.
“We were (also) fortunate to (have launched) our new 2018 Nissan Qashqai (over this weekend), thus the good result,” he said. “So far, the crowd has been very strong, especially on Saturday”.
Jack Cars Enterprise operations manager Michael Tan said sales have “picked up by quite a bit” — at least 30 per cent — since Wednesday, when the COE for cars up to 1,600cc and 97khw fell to S$36,100, the lowest since November 2010.
Motor dealer CarTimes Automobile managing director Eddie Loo said he has seen sales increase by 40 per cent for small cars following the results of the bidding exercise.
“The sales will be good until the next COE bidding (exercise),” he added. “I think a lot of people will rush in (to buy the cars).”
RTMT Motor managing director Ricky Tay agreed that the “crowd is coming in strong”. “Customers realise that it’s time for them to ... buy cars, since prices for Cat A cars are low.”
The latest COE price for small cars follows a downward trend for the most part of this year.
COE prices in this category hit a high of S$92,100 on Jan 9, 2013, after a steep four-year climb from its S$2 closing price on Nov 19, 2008.
Motor traders had attributed the latest drop, from S$42,900 previously, largely to the uncertainty about the way the new emission standards would play out.
Car dealers now believe that the COE price will rebound slightly in the next bidding exercise. Mr Tan said this will “probably” be the case, given the appeal of the current COE price to buyers.
Mr Loo reckons that the COE price could increase by S$3,000 to S$4,000.
“Now, (car) prices are very affordable ... and also, agents will bring (in) a lot of promotions,” he said. “So I believe because ... when the demand is good (and) the supply is still there, the prices normally will go up.”
Car buyer Selina Kok, 57, who had 10 months left on her COE, decided to strike while the iron is hot. She bought a Hyundai Elantra S yesterday.
“Everyone will come in and what do you expect? The next round (of COE prices) is likely to go up. So I felt this was a good time,” said the part-time administrative assistant.
Potential car buyer Vincent Ong, who has about one and a half years before his car is scrapped, said the fall in the COE price for small cars prompted him to check out the showrooms.
“I’m thinking of buying a new car ... so I want to come and have a look because there are so many kinds of cars under S$100,000 to choose from,” said the 54-year-old, who is self-employed.
“A car’s very expensive ... so I (am) hoping the COE prices will go down again”.
