After last week’s COE price spike, some of us might be wondering if we should hurry and get that new car.
This anxiety is undoubtedly worsened by the fact that the COE supply will shrink for the May-July period.
There will be 13.7 percent fewer Cat A certificates during those three months.
Therefore, most of us would expect another spike in COE prices.
This may lead some to conclude that they should rush and acquire that car they’ve been eyeing before it becomes too expensive.
But before you make a decision, here are three factors you need to consider.
1) THERE IS NO WAY TO PREDICT COE PREMIUMS.
Folks who managed to get their COE for relatively cheap are very lucky.
But there is no way to gauge with 100 percent accuracy which way premiums will go.
You could gamble that prices will rise, buy a car and be delighted when COE prices hold steady or fall.
Or, you could order that car and find to your horror that COE prices have spiked – again.
2) THE COE PRICE SPIKE IS NOT BEING DRIVEN BY CONSUMERS.
According to many in the motor trade, the price spikes are being driven by rental companies affiliated with private-hire firms.
That’s right, Grab and Gojek are indirectly (or is it directly?) causing COE prices to rise.
Therefore, bear in mind that if you decide to buy a car, you are up against big companies.
And they seem to have an inexhaustible supply of funds, too.
3) THERE IS NO “BEST” TIME TO BUY A CAR.
There is no such thing as a “right” or “best” time to buy a car in Singapore.
Cars here are the most expensive in the world.
And they become even more absurdly expensive when you factor in COE.
Buy a car when you need it, can afford it and are willing to spend on it.