COE hits 80K , why are people buying a car?
COE hits a whopping 80K.
This is the latest result of COE bidding
CAT A (Cars up to 1600cc and 130 bhp)
$52, 709 ( Up $5,708)
CAT B (Cars above 1600cc and 130 bhp)
$ 80,210 ( Up $10,010)
CAT C (Good Vehicle & Bus)
$40,501 ( Up $1,611)
CAT E (Open)
$85,000 ( Up $12,244)
So what are people rushing to buy a car during the pandemic?
Here are possible reasons
The rich are buying - Luxury brands are striving
Cars registered in H1 2021 for luxury brands such as Aston Martin, Bently, Ferrari, Lamborghni, McLaren, Porsche, Rolls Royce had surpassed the total for 2020 according to this report. Sale for Premium cars such as Audi, BMW and Mercedes- Benz are healthy as well.
No Overseas Travel = More funds for other items
Since travelling overseas has stopped for almost 2 years, people are transferring their savings to cars instead.
Better to drive than to take public transport
With the increase in COVID-19 cases, many are opting for self drive instead of taking public transport. If you have been picking your kids from schools, you may notice the increase in traffic.
COE quota to reduce
Other than demand, supply plays a part as well. COE quota is at the lowest in 7 years. The Quota for Nov 2021 to Jan 2022 has been set at 10,590, the lowest in 7 years!
If you are looking to get a car now, the outlook remains high for COE prices in the next few months. Will you pull the trigger or wait for COE to hit $100,000?
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