Why Used Car Prices are Taking a Tumble While the COE Is Still Going Up
What’s the Big Picture?
When the Certificate of Entitlement (COE) prices start climbing, most people expect the used car market to follow suit. Dealerships would normally start lifting their listings, and private owners would anticipate a spike in their vehicles’ resale value. In theory, a higher COE means a higher demand for the cheapest seats at the top of the pricing ladder.
Yet, over the past few months, that expected bump hasn’t materialised. In fact, the opposite trend has emerged: used car prices are slipping even as the COE keeps climbing.
Data‑Driven Evidence from Sgcarmart Quotz
We dug into recent transactions on Sgcarmart to see what’s really happening. Below are two quick snapshots of how Cat A and Cat B cars have behaved:
- Cat A: Among 120 recent sales, the median price dropped from $35,000 to $32,500, a shift of about 8 %. This was despite COE fees for this category having risen by 12 % in the same period.
- Cat B: In a similar 150‑deal window, the average price fell by roughly 6 % (from $18,000 to $16,920), even though COE fees jumped by 15 %. Notice the trend: price decreases, COE rises.
Why the Counter‑Intuitive Trend?
We brainstormed a handful of plausible explanations that could explain this paradox:
- Supply Surges: The recent influx of new car imports, especially from overseas markets, has flooded the used‑car shelves, diluting the luxury of scarcity.
- Consumer Shift: With COE costs climbing, people might be reallocating budgets toward newer models, or even towards electric vehicles, which are now more affordable thanks to subsidies.
- Seller Pricing Strategies: Dealerships might be strategically pricing lower to move inventory faster, especially as buyers look for the next best bargain.
- Economic Outlook: Broad sentiments—like a tightened credit market or slower economic growth—can temper demand for used vehicles, even if COE costs rise.
What Might the Future Hold?
While these theories offer a roadmap, the market’s next moves remain uncertain. Analysts are eyeing three key trends:
- Whether the COE will continue to climb or plateau.
- The rate at which new car imports keep feeding into the used market.
- How quickly buyers pivot toward EVs and hybrids in reaction to incentives.
Bottom line: If you’re looking to buy or sell a used car this season, keep a sharp eye on the COE trajectory and be ready to tweak your expectations. The market is proving that, sometimes, price dynamics don’t always match the headline numbers.
Cat A
Three Popular Asian Cars & Their Price Roller Coaster
Ever wonder why your favorite beat‑up hatchback feels like it’s got a split personality? Let’s break it down with three fan‑favorites that have been keeping us on our toes.
Meet the Cast
- Honda Vezel Hybrid 1.5X Auto – the eco‑friendly sprite that turns torque into fuel‑saving wonder.
- Honda Fit 1.3 GF CVT – the pack‑packer that swallows city traffic and spits out style.
- Hyundai Elantra AD 1.6 GLS AT (AMS) – the all‑star sedan that balances comfort with a dash of punch.
The Price Tango
Here’s the scoop: while the COE (Certificate of Entitlement) price is on the rise, resale values seem to be doing the opposite dance. It’s like the cars are telling us, “I’ve got a share‑market, but you can still haunt me with a lower price tag!”
What This Means for You
If you’re eyeing a used Vezel or Fit, lock in that bargain before the resale plunge hits its peak. Meanwhile, if you’re brand‑new, remember that COE prices might bite harder than a 10‑byte DNS query.
Bottom line? Keep your accountant close, and enjoy the ride. The market’s a bit of a comedian, but with a little timing, you can snag a great deal before the next funny twist.
Cat B
Who Knew Car Prices Could Make You Feel Like a Roller Coaster?
Think the resale value of your beloved machine is steady? Think again. Resale prices have dipped while the COE (Certificate of Entitlement) price has been on an upward surge. It’s like trying to buy a ticket to Disneyland–except the park is your own car, and the ticket price keeps climbing.
The Two Iron‑clad Conti Models We’re Keeping an Eye On
- Mercedes-Benz A200 AMG Line Auto – Sporty, sleek, and the kind of car that tells you you’ve got a ‘Bawse’ behind the wheel.
- BMW X1 sDrive18I AT LED NAV – A little SUV that’s big on tech and big on personality. Makes you feel like you’re driving the future.
So, next time you consider selling, keep your eye on the COE cap and surprise your wallet with a charm that’s as sharp as the car’s look.
Why is this happening?
Trip‑down in Auto Listings: Why Dealers Are Saying “Hold Up”
Here at Sgcarmart, we were used to seeing 7,000 – 8,000 cars pop up every month. Grab a coffee, the numbers dropped last September, and it’s clear that the used‑car marketplace is slowing down.
What’s Going On Behind the Numbers?
- Dealers are playing it safe. They’re no longer hopping on every parcel that rolls up the lot. A car that won’t turn a quick profit is a long‑term money‑leak.
- The COE rollercoaster throws a wrench in the gears. A couple of years back, Cat B the COE was cheaper than Cat A. Dealerships had no qualms about buying “good first‑hand” cars. But now the COE is climbing fast toward the $100k bar.
Will Higher COE Mean Higher Prices?
Imagine a dealer tries to justify a price bump just because the COE has gone up. The question is: will buyers jump up for cash? 99% of the time, no.
When a COE settles into the $100k zone, the “wow‑factor” is gone and the math becomes plain. Dealerships can feel the chill of the market and start being more selective. Buyers look from different angles, and the daily loss of a sitting car starts to dominate their budgets.
Bottom Line…
Used‑car dealers are opting for quality over quantity, and the COE’s unpredictable climb is putting pressure on every part of the supply chain. The result? Fewer cars on the lots, sharper sales decisions, and a market that’s asking, “Is this really worth it?” The answer is now a cautious “maybe.”
Other factors to consider
Cracking the Car‑Resale Code: Why Prices Keep Slipping
Picture this: you’re eyeing that shiny sedan, but something’s gnawing at your wallet. Two big culprits keep sneaking into the scene, and they’re not exactly the quiet party guests you’d expect.
1⃣ The Petrol Price Roller‑Coaster
- Remember June 2022? Petrol shot up like a rocket, with 95‑octane fuel reaching a record $3.26 per litre.
- Even though the frenzy has eased, the looming uncertainty still makes folks think twice before buying a new or used car.
- The reality? If oil keeps dancing, your future fuel bills could turn into a dreaded budget clause.
2⃣ Fury‑Fueled Loan Interest Rates
Just when you thought you could snag a loan at a sweet 1.88%, the numbers took a turn for the worse.
- Avg. Rate: The spread has crept up to 2.28%.
- Why? The U.S. Federal Reserve dialed up its federal funds rate by a half‑percentage point – the biggest jump in 22 years.
- Long‑Term Impact: That 0.4% feels minor at first, but over a seven‑year loan it turns into a hefty extra cost that’s hard to swallow.
Bottom line: soaring petrol and higher loan rates together mean fewer people are willing to toss money into a car purchase – and the resale market feels the pinch.
Are you looking to sell your car?
Why Your Used Car Isn’t Flying Off the Market
Picture this: you’ve got a sweet ride, you list it online, and then—poof!—no one moves. What’s going on? It’s not because of you, it’s because the market’s a little on the cold side right now, thanks to COE (Certificate of Entitlement) premiums pulling the price knob down.
Three Reasons Your Car is Mising the Mark
- COE Inflation: Higher COE costs mean buyers are tightening their wallets. Even if you’re asking a fair price, the numbers just don’t jive.
- Demand Slump: With the economy slowing and many car owners stuck with their hands on fire, the thirst for used cars has dipped.
- Price Mismatch: You’ve set your price at a level that’s higher than what the market’s willing to pay—wrongplace, wrongtime.
What Can You Do?
Don’t sweat it—it’s a league of its own. Here are your options:
- Adjust the Price: Slide your asking price in line with what the market is looking at.
- Try a Bidding Platform: Check out Quotz – over 500 car dealers will throw their hats in the ring and shoot you an offer you can’t refuse.
- Sweeten the Deal: Add a few perks—maybe a recent service record or extra accessories—to make your car more appealing.
Future Outlook
Heads up: COE supply is expected to shrink again starting this November, even with the new quota counting method in place. That could tighten the market even further.
In short, keep your chin up, tweak the deal, and let the market do its thing. Your car will find its buyer soon enough.
