Here are 3 Reasons Why it is a Good Time to Buy a New Car Now
After finding out How to Get the Best Deal on a New Car in our previous article, here is one more way that you can get the best deal! With decreasing supply of COEs, increasing COE prices and the latest bidding exercise with a considerable drop in COE prices, it is perhaps a good time to buy a car now to get the best deal!
Decreasing Supply of COEs
The Certificate of Entitlement (COE) prices are basically determined by demand and supply. The demand can be affected by the economy, new vehicle launches or how much people are willing to pay, while the supply is calculated largely by the allowed vehicle growth rate and the replacement of de-registered vehicles. The COE quota (supply of COEs) is computed and released every 3 months.
The current period from May 2019 to July 2019 has seen a drop in COE quota as compared to the previous period from February 2019 to April 2019. In fact, the COE quota has been dropping ever since November 2018 and this may be the cause of the soaring COE prices since the start of 2019.
COE prices are increasing but still affordable
COE prices, especially for Category A, B and E, have generally been increasing since the start of 2019, with the exception of the latest bidding exercise results that saw a substantial decrease in these 3 categories.
Though the COE prices have been mainly increasing, the current prices are still considered affordable as compared to 2013 where the prices rose up to record levels, as noted below in the table.
Consider getting a new car now before COE prices increase further, or you may end up with a car that has a higher depreciation cost. This is especially so now that the COE prices for all 5 categories have decreased; and this being the first ever drop this year for Categories A, B and E, with the exception of Category A dropping just $481 for the 1st Bidding Exercise in February 2019.
In comparison, the price for Category A dropped $9,704 to just $27,000; Category B dropped $5,446 to just $42,564; and, Category E dropped $5,502 to just $47,000. Take advantage of the low COE prices now as this may be the best time to buy a car! Contact Us now for a non-obligatory consultation on our no top-ups Guaranteed COE packages!
Choosing to buy a new car
If you are deciding between buying a new or used car now, it may be better to buy a new car now considering that the majority of used cars that are around 2 to 8 years have a high COE component in its price and therefore the depreciation costs may even be higher than that of a new car. This is due to COE prices being relatively high from 2011 -2017, especially 2013 when COE prices hit a record high.
With COE quota dropping and COE prices generally on the rise, now may be the best time to buy a new car considering that the COE prices have just dropped substantially. Don’t miss out to get a new car during this period before the COE prices rise again! Contact Us now for a non-obligatory consultation on our no top-ups Guaranteed COE packages!