Singapore: As consumers adopt a wait-and-see mentality when making purchases, the proposed infusion of up to 20,000 Certificates of Entitlement (COEs) could negatively impact their business in the near term, according to auto dealers.
Customers are expecting car costs to drop as a result of the new COEs, which will be distributed across all vehicle categories beginning in February 2025, according to the dealers.
The dealers also requested additional information regarding the distribution of these COEs across various categories and the date of their addition.
The Land Transport Authority (LTA) announced on Tuesday, October 29, that the decision to inject more COEs, the first in more than two decades, is based on the imminent implementation of ERP 2.0. To effectively handle traffic congestion, the ERP 2.0 system will feature virtual gantries.
In the hopes that COE prices will decline, automobile customers may postpone purchases, according to Mr. Neo Nam Heng, chairman of the diversified motor firm Prime. Purchasing a Category B automobile won’t cost you S$115,000 (US$87,000). Naturally, some car purchasers would take a wait-and-see approach, he added. Larger and more potent vehicles fall under Category B, and this year’s COE premium hit a high of S$116,002.
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