COE dropped to $25,000 last month and remained relatively low in the last 2 rounds of bidding. This has resulted in many car owners whose car’s COE expiring in September/October asking if should they renew their COE earlier. Here’s our take on renewing COE for cars registered in September/October 2008.
Let’s first summarise the latest COE results and August PQP for CAT A (up to 1,600cc & 130bhp), B (above 1,600cc or 130bhp) and C (goods vehicle):
|Cat A (up to 1,600cc & 130bhp)||Cat B (above 1,600cc or 130bhp)||Cat C (goods vehicle)|
|Aug 1st Tender||$33,798||$34,381||$30,389|
The PQP is the moving average of the COE prices in the last 3 months (or last 6 bids) and varies from month to month. Since PQP is calculated from the last 6 bids, the drastic dip in July’s COE premium is going to impact September, October and November PQP in a good way. Therefore, if your COE is expiring after September, we would recommend you to renew it on the expiring month. This is because September’s PQP is likely to be lower than August PQP as long as next round’s premium end below $43,000 for CAT A and $42,000 for CAT B. Although COE premium has been gradually increasing since July’s first tender, it has been below $40,000 (for both CAT A & B) since March 2018. If demand remains more or less the same, chances of premium staying below $40,000 for upcoming rounds is rather high. Therefore, if you are keen to renew your car’s COE that is expiring in/after September, we strongly advise that there is no need to forfeit your remaining COE and rush for COE renewal. Nevertheless, you can still submit your interest here for our consultant to advise you further. Alternatively, you may call to speak to our consultants at 6444 4400 (Mon-Fri, 9am-6pm).