February 1st COE Bidding Results: Prices Continue to Decline Across Most Categories

Creative of February COE 1st Bidding Results

The first COE bidding exercise of February 2025 saw a continued downward trend in premiums, offering a slight relief for potential car buyers. While most categories recorded a decrease, motorcycle premiums in Category D were the only exception, seeing a slight increase.

With this shift in COE prices, what does it mean for prospective buyers and existing car owners? Let’s break down the latest results and key insights from this bidding round.

COE Results Breakdown – February 1st Bidding

Here’s how the COE premiums fared in the latest bidding exercise:

Image of Feb 2025 COE Bidding Results

Key Takeaways from This Bidding Round:

  • Most categories saw price drops, following the trend from the previous bidding round.
  • Category D (Motorcycles) is the only exception, registering an increase, likely due to demand fluctuations.
  • Premiums for luxury vehicles (Category B) continue to fall, making this a more favorable time for those looking to purchase a high-end vehicle.
  • The supply-demand balance is shifting, and more buyers may enter the market in the next few months.

Market Trends & Key Insights

Image of Singapore Cars

The downward trend in COE prices can be attributed to several key factors:

1. Increased Quotas:

  • The Land Transport Authority (LTA) has gradually increased COE quotas in recent months, leading to greater availability and lower bidding pressures.
  • With more COEs available, competition is slightly eased, causing premiums to drop.

2. Economic Uncertainty & Buyer Caution:

  • Many potential buyers are holding back due to economic uncertainties and rising interest rates, resulting in fewer aggressive bids.
  • Some buyers are adopting a wait-and-see approach, anticipating further price drops in the coming months.

3. Luxury Car Demand Stabilizing (Category B & E):

  • Categories B and E, which include larger and luxury vehicles, have seen declining COE premiums as demand stabilizes.
  • This could indicate that the initial surge in luxury car demand seen in late 2024 is tapering off.

4. Category D (Motorcycles) Pricing Remains Volatile:

  • While car COEs are on a downward trend, motorcycle premiums increased slightly, suggesting sustained demand in this segment.
  • The rise may be due to more delivery riders entering the market, as well as high demand for affordable transport options amid economic uncertainties.

With these trends in mind, let’s explore what this means for car buyers and owners.

What This Means for Car Buyers & Owners

image of singapore cars on the road

With COE prices showing a downward trend in most categories, here’s what car buyers and owners should consider:

For New Car Buyers:

Now might be a good time to enter the market. If COE prices continue to dip, it could mean better deals on new cars, especially for those eyeing luxury or larger vehicles in Category B and E.

Financing is still a key factor. While COE prices have softened, interest rates on car loans remain high. Buyers should weigh the total cost of ownership before committing.

Keep an eye on quota changes. The COE market is unpredictable. Future adjustments in quota supply could push prices back up.

For Existing Car Owners:

🚗 Renewing your COE? Lower premiums may mean more affordable renewal costs for those considering extending their vehicle’s lifespan.

🚗 Selling your car? If COE prices continue to fall, the resale value of used cars may dip. Now could be a strategic time to trade in your vehicle before prices stabilize.

🚗 Regular servicing is key. Whether you’re holding onto your car longer or purchasing a new one, ensuring your vehicle is in top condition will save on maintenance costs in the long run. Curious how often you should service your vehicle? Check out our recent guide on the servicing intervals based on the make and model you drive!

Stay Ahead with BCC Automotive

BCC Automotive Toh Tuck Oulet

As COE prices continue to shift, it’s crucial to stay informed and make smart decisions whether you're buying, selling, or maintaining your car.

At BCC Automotive, we’ve been Singapore’s trusted car servicing and repair specialists for 50 years, ensuring every vehicle stays in peak condition - no matter what’s happening in the market.

Visit us at Sin Ming & Toh Tuck, or book your appointment online today!