COE Premiums for Motorcycles Higher Than What It Used To Be
Certificates of Entitlement (COE) premiums for motorcycles have shot up while premiums for cars have decreased at the final tender of last year.
In the early ‘90s, COE premiums only cost $1 with higher COE quotas. In November of 1993, there were 7,079 COE quotas available and successful bids hit only 1,090 then. This time is long gone as the motorcycle premium has been reported to have increased by 14.5% at about $7,501 from $6,552 in Dec. 6.
High COE premiums could hurt lower-income riders who are eyeing the 200cc and below category, which makes up about 70% of the population. The current COE premiums, however, will make it more difficult to buy the same motorcycle as it would cost twice as much. The obvious alternative would be to buy second-hand motorcycles, but many have said that it “might not be a long-term solution”.
One reason, said motor traders and according to The Straits Times, for the “slow trickle of orders” is because “consumers adopt a wait-and see attitude ahead of the new Vehicular Emissions Scheme (VES), which kicks in on Jan 1”.
The VES, announced Dec. 21 of last year, is intended for all new cars, taxis and newly imported used cars. Aside from carbon dioxide (CO2) emissions, it will assess vehicles based on four additional pollutants such as - hydrocarbons (HC), carbon monoxide (CO), nitrogen oxides (NOx), and particulate matter (PM).
Now that it has taken effect, the COE prices in the first bidding as of Thursday, Jan 4, for 2018 have “ended mixed”. The current COE premium for Category D, Motorcycle, is at $7,701 from the previous $7,501.
What is a COE?
Those who want to register a new vehicle (cars or motorcycles) in Singapore must first obtain a Certificate of Entitlement, in the appropriate vehicle category. This particular certificate represents a right to own a vehicle and use it on the road for 10 years. At the end of that 10 years, vehicle owners may choose to deregister their vehicle or renew their COE for another five to 10 years by paying the Prevailing Quota Premium.