Thursday, September 18, 2008

COE Quota Reduced for the next 6 months

Cars are high in demand in a small country like Singapore. Despite the high price one needs to pay such as the purchase of the Certificate of Entitlement before the car, demands remain to soar. With this demand, it has pushed the price of COE higher in the recent bidding.

However, in the next 6 months, the Land Transport Authority of Singapore will be reducing the monthly quotas for COEs. A large change is apparent in the Categories C -30% (goods vehicles and buses) and Es -13.9% (open category).

A full report of the categories, the reduction of quota are as follows:
Category A (cars 1,600cc & below and taxis) -9.6%
Category B (cars above 1,600cc) No change
Category C (goods vehicles & buses) -30%
Category D (motorcycles) -8/1%
Category E (open category) -13.9%

With these reduction of quota release each month, will there be more competition for car buyers to sell their cars. Will that bring the prices of COE higher? Or will the demand for cars be reduced, causing prices for new vehicles in certain categories to fall?

But, if there are lesser cars on the road, wouldn't that be better for all?

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