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Seller's market for used cars as COE premiums soar

2010-04-06T00:40:00.002+08:00

Seller's market for used cars as COE premiums soar
By Lin Jiamei | Posted: 05 April 2010 1705 hrs

SINGAPORE: It's a seller's market now for second-hand cars, as high COE prices drive up the resale value of used cars.

Dealers say sales of used cars have gone up by at least 30 percent over the last two weeks.

Certificate of Entitlement (COE) prices for vehicles soared when the last bidding exercise ended on March 24, as the market reacted to an expected reduction in the supply of COEs this month.

The biggest increase was in the Open category, where the COEs can be used for any vehicle type but end up usually for cars. Here, the premium rose S$14,411 to close at S$42,001.

While the sky-high COE prices may be bad news for first-time car buyers, it may just be good news for those looking to sell their cars.

With the higher COE prices, car dealers say they are seeing more people who are willing to sell their cars in order to upgrade to another one.

These sellers are asking for at least the same price at which they bought their cars about one or two years back.

And dealers are willing to match these prices in anticipation of better sales in the second-hand car market in the months ahead.

Wang Weiye, sales manager at Vegas Automobile, said: "A BMW is the most classic example. A new car then was $108,000. But in today's used car market, a car like that, which is about a year old, can (fetch) $128,000. Instead of losing money, you have gained $20,000 in returns. It is as if consumers are driving the car for free and taking in a profit."

Eric Liew, sales manager at Fugen Automobile, said: "We actually saw a lot of people upgrading from, for example, a Honda Fit to a Volkswagen Polo, from a Japanese car to a Continental car."

Raymond Tang from Yong Lee Seng Motor said: "....about three to four months ago when they wanted to sell a car (and buy a new one), they needed to top up the difference or maybe they will take lesser money back.

"But now, they do not need to top up and instead they can break even on the car price or they may even take more money back to put into their next car.

"Two years ago, if you buy a Toyota Altis, you will be paying around $50,000. Now, you can even sell out at around this range...and you are not making a loss."

The results of the next round of COE bidding, which is the first after a supply cut, will be out this Wednesday.
- CNA/ir

COEs for all vehicle categories surge in latest bidding exercise

2010-03-25T01:21:00.003+08:00

COEs for all vehicle categories surge in latest bidding exercise
By Lin Jiamei | Posted: 24 March 2010 1721 hrs

SINGAPORE : COE prices have shot up by as much as S$14,000 in the latest bidding exercise.

The market appears to be reacting to an expected reduction in the supply of COEs next month.

The market has been bracing for the prices of COEs to head north, but what it did not expect was the size of the jump in just one bidding exercise.

The biggest increase was in the Open category, where the premium closed at S$42,001, an increase of S$14,411.

The COE for big cars also saw a significant jump. It rose S$9,700 to S$36,089. For small cars, the new premium stood at S$28,389 - up S$7,587.

In other categories, the COE for commercial vehicles climbed S$5,889 to close at S$32,890, while premiums for motorcycles went up S$41 to S$1,200.

Car dealers MediaCorp spoke to did not expect this wave of increases to be so big.

Chin Kee Min, senior manager, KIA Motors, said: "(I was) a bit taken aback, but in all honesty, if it does not come now, it will come later, so it is a matter of time. I think it is mainly a knee-jerk reaction... it is a self-fulfilling prophecy.

"When you expect the prices next round to increase, you will actually see it this round. Since it did happen this round, so the next round we are not expecting as huge a jump as what we see now. Not only is the public worried, the car distributors are also worried that they may not be able to circulate the COEs."

This is the latest COE bidding for this quota year. From next month, a new quota system will kick in, whereby the number of COEs available will be determined by the actual number of cars de-registered. This means fewer COEs and higher prices.

But car dealers MediaCorp spoke to said they do not expect the jump in the COE prices next month to be as drastic as what they have seen this time round.

They expect to raise car prices by another 20 to 30 per cent, with higher COE prices and a supply cut.

And as new cars become more expensive, second-hand cars may be a more popular option. One second-hand car dealer said he has seen a 10 per cent increase in sales since the COE supply cut was announced.

Raymond Tang, Yong Lee Seng Motors Pte Ltd, said: "For used cars, I think at the moment, the increase will still be there, maybe around S$3,000 to S$5,000 expected. The prices for used cars are still quite moderate, still very far away from a new car, so I feel that the prices are still very stable. So even if they increase by S$3,000 to S$5,000, it is still a very big gap."

There will be 4,238 COEs available in the next bidding exercise and dealers said high COE prices are here to stay. - CNA/ms

Caltex increases fuel prices

2010-01-14T01:33:00.004+08:00

As reported in CNA:

Caltex increases fuel prices

By Mustafa Shafawi, Channel NewsAsia | Posted: 12 January 2010 1250 hrs

SINGAPORE: Petrol prices are going higher.

Caltex has increased the prices of all grades of petrol and diesel by five Singapore cents a litre from noon on Tuesday.

The price of its Premium 98 Techron fuel now costs S$1.94 a litre, and 95 grade fuel costs S$1.857 a litre.

Diesel now costs S$1.323 a litre.

Shell and ExxonMobil have not raised their pump prices, as of noon on Tuesday.

- CNA/sc

New law only allows 20 litres of petrol

2009-12-11T08:54:00.002+08:00

New law only allows 20 litres of petrol
Thu, Dec 10, 2009
The Star/Asia News

KUALA LUMPUR, MALAYSIA: Foreign-registered vehicles will only be allowed to pump a maximum of 20 litres of fuel when travelling within a 50km radius from the border, said Domestic Trade, Co-operative and Consumerism Minister Datuk Seri Ismail Sabri Yaakob.

Enforcement authorities at the checkpoints were also directed to ensure such vehicles leave the country with no more than 20 litres of fuel in the tank, he said.

Ismail added that the directive would be implemented soon.
Ministry officers were in the midst of issuing a circular on the matter to petrol stations in the affected areas in Kedah, Kelantan, Johor, Sabah and Sarawak, he said.

"This measure is to curb the increasing cases of fuel smuggling, as the prices for fuel are subsidised and cheaper in Malaysia compared to those prices set by neighbouring countries such as Thailand, Singapore and Indonesia," he said.

Ismail said for RON 95, it was sold at RM1.80 (S$0.73) a litre in the country compared to RM4.01 in Thailand, RM4.31 in Singapore, RM2.26 in Indonesia and RM5.42 in the Philippines.

"It is unfair if foreigners get to enjoy the fuel subsidy provided by the Government," he told reporters at the Parliament lobby here yesterday.

He said the decision to limit the sale was made under the Control of Supplies (Prohibition of Export) 2000 Regulation.

Ismail warned that petrol station operators caught selling fuel exceeding 20 litres to foreigners risk facing action from the ministry, such as having their licences withdrawn.

In May 2008, the then Domestic Trade and Consumer Affairs Minister Datuk Shahrir Samad had barred petrol stations located in border states like Johor and Perlis from selling petrol and diesel to foreign-registered cars.

However, this ban was subsequently rescinded following complaints.

Ref: http://www.asiaone.com/Motoring/News/Story/A1Story20091210-185015.html