The COE supply is set to increase, so would-be car buyers and motorcycle owners have more reason to cheer for the next three months.
There will be 12.5 percent more certificates of entitlement (COEs) for the next three-month quota period starting from August.
In a statement on Thursday (July 12), the Land Transport Authority said there will be 9225 COEs a month from August to October – up from 8202 currently.
Car buyers will have 6912 COEs a month, or 5.7 percent more than now.
Motorcyclists will get the biggest increase, with their quota rising 55.7 percent to 1639 COEs per month.
Industry watchers expect the expanded COE supply to further dampen premiums, which are now at their lowest in almost 10 years for cars.
In the latest bidding exercise on July 4, the premium for cars up to 1600cc and 130bhp fell by 26.7 percent to $25,000.
The COE price for cars above 1600cc or 130bhp dropped by 8.6 percent to $31,000.
The premium for Open COEs, which can be used for any vehicle except motorcycles, but which are used mostly for cars, fell by 9.9 percent to $31,001.