Demand for used cars set to rise after changes to COE
The demand for used cars is expected to go up following changes to the Certificate of Entitlement (COE) announced on Monday.
Car dealers expect premiums in Category A and B to remain high -- at least until the changes in Category A kick-in in February next year. Cars belonging to Category A must not have more than 130bhp of engine power. This is on top of the existing one that caps engine capacity at 1,600cc.
Dealers expect to see good demand for newer used-cars because these will still be more affordable than brand new ones. Used-cars that have a few more years left in their COE could also be popular. The Singapore Vehicle Traders Association believes car buyers will consider buying used cars until the market stabilises.
Some luxury car dealers are gearing up to lure buyers to their showrooms, beginning this weekend, in a bid to clear stocks of vehicles that will be reclassified as premium models from next February.
The move follows changes in the certificate of entitlement (COE) system.
Dealers planning to go on a sales drive include Volvo agent Wearnes Automotive, which is looking to sell models like the S60 and S80. These currently belong to Category A - which caps engine displacement at 1,600cc - but will be re-classified under Category B next year.
Mr Victor Kwan, managing director at Wearnes Automotive, said the dealership will start clearing its 1.6-litre engine cars with "aggressive pricing".
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