The Soaring Costs
Singapore’s Certificate of Entitlement (COE) premiums are making headlines once more, this time with alarming price hikes.
On Wednesday (20th September), the COE premiums for Category B and Open Category vehicles astonishingly surpassed the S$140,000 mark for the first time.
Those for Category A cars, typically smaller and less powerful vehicles, closed at an unprecedented S$105,000, marking the fifth consecutive increase in these premiums.
Source: Channel NewsAsia
Possible Driving Forces
Two primary factors, as outlined by The Straits Times, appear to be pushing this trend: motor dealers keen to hit year-end targets and the imminent expiry of tax rebates for electric vehicles.
Uncertainties surrounding the Electric Vehicles(EV) Early Adoption Incentives future, currently offering rebates of up to $20,000 off vehicle taxes, further muddy the waters for potential car buyers.
Source: NUS College of Design and Engineering
Public Reaction is a Mix of Surprise and Understanding
Comments on ROADS.sg Facebook Post highlights the conundrum many residents feel.
A Comment from Victor read “If people insist on driving in a land-scarce Singapore, then this situation is inevitable. Why the surprise? COE will hover around $200k by the end of 2024.”
But not everyone echoes this sentiment. Another user by the name of TL Oon voiced confusion, asking about the root of the unexpected demand. It did not take too long before the user was replied with a comment which read “Rental companies?”
Another user by the name of Justin Chen, took a more accusatory tone, pointing fingers at car leasing and sharing services like BlueSG and Shariot for hiking the COE prices.
Screengrab from ROADS.sg / Facebook
Industry Insiders Weigh In
Several professionals within the automotive industry voiced their concerns and provided some insights.
As reported by The Straits Times, Mr Ng Choon Wee from Komoco Motors mentioned dealers perhaps chasing their year-end sales targets as a driving factor.
As we spoke to Mr Galvin, Business Development Director of Vin’s Automotive Group he mentioned that the COE prices are expected to rise in the upcoming months as he expects the supply to remain low.
For some, the current fluctuations in the COE system pose broader questions about its long-term implications.
A Dilemma for the Everyday Singaporean
But, as debates and discussions continue, it’s the regular Singaporean who feels the pinch.
Mohammad Iskandar Tobari’s sentiment encapsulates the mood: “With car prices so high, I don’t know why [my daughter] even wants to get a licence.”
Mr Sio, a recent university graduate and car enthusiast, pointed out that his dream of owning a car has become even more distant due to these COE prices.
Source: TODAY Online
In Conclusion
Initially introduced to manage vehicle numbers in land-scarce Singapore, the COE system, with its surging premiums and resultant frustrations, may require a revisit.
Will owning a car in Singapore soon be a privilege reserved for a select few?
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