COE Bidding Update: January 2025’s First Bidding Sees Major Premium Hikes

The first Certificate of Entitlement (COE) bidding exercise of 2025 kicked off with notable changes in premiums across multiple categories, setting the tone for what could be an unpredictable year ahead. While some categories saw moderate decreases, others experienced significant spikes, particularly in the Open and Large Car categories.

‍

With the Singapore Motorshow just around the corner and early-year buyer activity ramping up, this surge in premiums could be a signal of intensified demand in the coming months. In this update, we’ll break down the key results and insights from the latest bidding and explore what this means for car owners navigating the current COE landscape.

‍

COE January 2025 1st Bidding Results

‍

Here’s an overview of the COE bidding results for 9 January 2025:

‍

‍

Key Categories Changes

‍

‍

Category A ≤ 1600cc & 97kw

Premium: $93,699 (↓ $2,301)

‍

The COE premium for small cars saw a slight dip this round, potentially indicating stabilizing demand for mass-market vehicles. This could be attributed to buyers pacing their decisions after the end-of-year holiday season, waiting to see how the market evolves in Q1 2025. However, the demand remains relatively steady, with 1,381 bids submitted - well above the available quota.

‍

Category B > 1600cc & 97kw

Premium: $121,501 (↑ $12,501)

‍

Category B premiums surged significantly, reaching one of the highest levels in recent history. This increase is likely fueled by early-year buyers locking in their purchases before further price hikes and the upcoming Singapore Motorshow 2025, which often drives interest in premium car models. The higher bid count suggests strong demand from buyers looking to secure their cars despite the steep premiums.

‍

Category C: Goods Vehicles and Buses

Premium: $67,891 (↓ $1,999)

‍

The commercial vehicles category saw a modest decrease, reflecting cautious spending by businesses. Fleet owners may be holding off large purchases due to economic uncertainties and rising operating costs. The demand for commercial COEs tends to fluctuate less drastically, making this category more stable compared to others.

‍

Category D: Motorcycles

Premium: $9,001 (↑ $620)

‍

Motorcycle COEs continue to rise steadily, though not as dramatically as other categories. The increase could be attributed to sustained interest from delivery riders and private motorcycle owners, who may see motorcycles as a cost-effective commuting option amid COE hikes in other categories.

‍

Category E: Open Category

Premium: $123,000 (↑ $14,008)

‍

The Open Category saw the steepest increase, jumping by over $14,000 to reach $123,000. This category typically attracts buyers seeking flexibility to register vehicles across any category, particularly large cars. The sharp rise suggests a surge in demand from high-income buyers aiming to secure vehicles before premiums climb further.

‍

Market Insights and Projections

‍

‍

The first bidding of January 2025 reflects a dynamic COE market, with some significant movements in premium categories. Here are a few key takeaways and projections:

‍

Impact of the Singapore Motorshow 2025

‍

The upcoming Singapore Motorshow is known to fuel interest in new car models, particularly premium vehicles. This could explain the sharp spike in Cat B and Open Category premiums, as prospective buyers aim to secure their COEs before making purchases.

‍

In previous years, COE premiums have remained elevated for a few bidding cycles following the Motorshow due to increased interest from car buyers.

‍

Preemptive Bidding Amid Price Uncertainty

‍

Early-year bidding often sees a spike in activity, with buyers aiming to secure COEs before potential changes in quotas or market trends. This may explain the rush to secure Cat B and Cat E COEs despite the steep premiums.

‍

Commercial Sector Stability

‍

While Cat C premiums saw a slight dip, this is likely temporary. Businesses may be pacing their fleet expansions to manage costs, but any sustained demand for commercial vehicles could push premiums back up in the coming months.

‍

Motorcycles: A Steady Option

‍

The steady rise in motorcycle premiums suggests that demand from delivery services and individual commuters remains strong. Motorcycles continue to be a cost-effective option for navigating Singapore’s urban landscape, which keeps this category resilient despite overall price increases.

‍

Looking Ahead

‍

With COE prices fluctuating and events like the Singapore Motorshow influencing buyer behavior, it’s crucial for potential car buyers to monitor upcoming bidding exercises closely. Prices may remain volatile as new trends in the market unfold.

‍

COE Bidding Update: January 2025’s First Bidding in Review

‍

The first COE bidding of 2025 has set the tone for an eventful year ahead. With premiums for Cat B cars and the Open Category reaching new highs, it’s clear that buyer sentiment remains strong despite steep prices. The Singapore Motorshow and early-year demand have played a pivotal role in this surge, and it will be important to monitor upcoming bidding exercises closely for any signs of stabilization or further increases.

‍

As a car owner navigating this volatile market, ensuring that your vehicle is in optimal condition is more crucial than ever - especially if you’re considering buying a pre-owned car to avoid the high COE premiums.

‍

Keep Your Car in Prime Condition with BCC Automotive

‍

‍

Whether you’re holding off on an upgrade or considering a pre-owned car, BCC Automotive offers a comprehensive suite of services to support your journey:

‍

• Pre-Purchase Inspection (PPI): Planning to buy a used car? Our thorough PPI service provides detailed checks to ensure you’re making a smart, informed purchase decision.
• Full Servicing and Repairs: Extend the lifespan of your current car with our expert maintenance, from oil changes to in-depth diagnostics.

‍

This year, BCC Automotive hits its incredible milestone of 50 Years of Excellence in Singapore. With decades of trusted servicing and repairs, we remain dedicated to keeping your car safe, efficient, and road-ready for every journey ahead.

‍

Contact us via WhatsApp or make an appointment via our service booking form to experience half a century of automotive care you can count on.