Certificate of Entitlement (COE) premium ended at higher price across all categories on 24 February 2017.
COE for Category A, cars up to 1,600cc finished at $49,430 compared to $48,401 on the last round of bidding.
Category B, cars above 1,600cc experienced a slight increase in premium price at $50,621 compared to $48,209 previously.
Category E, open COE, experienced the greatest jump in premium price at $51,000 from $48,556 in the previous round of bidding.
The overall spike in COE closing price would come as a surprise, despite the overall economic condition and increase in overall quarterly car COE quota for February to April.
The quota for February to April period was increased by 11.6% compared to previous period.
The increase in supply was based on the high number of deregistration of vehicles, which is expected to stay high for the next two years with increasing number of vehicles reaching their 10-year mark.
However, despite the increase in quotation as well as the stricter policy being imposed on Private-Hire Vehicle at the end of January, the dip in COE price lasted only for one period.
Below are the comparison of prices before and after the policy implementation on Private-Hire Vehicle and current price
With the unpredicted market sentiment towards the supply adjustment, it begs the question, it's still worth it to purchase a car in Singapore?
When would ever be a good time to purchase a car?
Though it's useful to wait for the market to react to the increase in supply and regulation changes, it doesn't change the fact that purchasing a car in Singapore is still ridiculously expensive.
It's useful for us to compare alternatives to owning a private vehicle, without the uncertainty of COE price bidding and maintenance cost.
Options such as car sharing or car leasing have become a very attractive alternative to owning a car in Singapore given the unwavering high COE price.
Car leasing and monthly rental offer the flexibility that is highly attractive in current uncertain economic conditions. Leasing a vehicle would allow better allocation of monthly expenditures, while still offering the benefits of convenience in daily commute.
Leasing means all-inclusive expenditure on road-tax and regular servicing. Most car leasing provides less hassle in maintenance, protecting users from uncertain expenditures in case of breakdowns and regular maintenance and servicing.
Lastly, car leasing allows you to manage better month-to-month cash flow compared to forking up a lump sum to purchase a car in Singapore.
It's useful to keep a monitor on how the market reacts to the current quarter's COE quota supply increase and how private-hire firms react towards the increase in regulations. The current premium spike may be due to increase in demand given the significantly lower premium at the first bidding round in February.
However, it's always good to assess alternatives of owning a car to make the best value for your hard-earned money.