COE PRICES MAY FALL EVEN BEFORE INJECTIONS

Dealers nevertheless remain optimistic and believe that the impact on their business will not be serious.

Mr Loo said if there were indeed fewer buyers, this could lead to lower COE prices during this period and a resulting increase in demand in the months that follow.

“Right now, if customers delayed immediate purchase (of cars), the immediate COE would decrease… that’s good news for everyone,” he said. “It’s supply and demand.”

Another factor that could lower COE prices is lower offers from car dealers. When they anticipate a drop in COE premiums, they will take this into account when pricing their vehicles.

“Normally, car dealers offer lower prices as the (number of) COEs will be larger (in the future),” said Singapore Vehicle Traders Association president Mr Neo Tiam Ting .

“The bid price could go down even though we are not yet at the February 2025 tender,” added Mr Neo, who is also a director of car dealership ThinkOne.

Agreeing, Mr Loo said: “Customers generally don’t care entirely about COE prices, but they will look at the full transaction price of the vehicle.

“Thus, a lower (COE) price built into the asking price will allow consumers to benefit from lower prices overall.”

But car dealerships that hold on to used cars will likely suffer losses, Mr. Neo said.

“If COE prices fall, their (used) car prices will also fall, so during this interim period they may suffer from their existing stock,” he said. “But in the future, they will be able to buy (second-hand) (hand-held cars) at lower prices.”