Premiums Across All Categories Increase Sharply To End Above The $80,000 Mark

Predictably, COE premiums saw a sharp rise across the board with all premiums under all categories ending above $80,000.

As COE premiums increase across all categories (Cat A, B and E) at the end of today's bidding session, prices have crossed the $80,000 mark after hovering north of $75,000 for the past few biddings.... The results come as no surprise, as the Government announced the much-awaited, but controversial, tweaks to the 23-year old COE system just a week ago.

As premiums across all categories ended north of $80,000 mark, Cat B's increase of $9,139 was the widest in comparison to Cat A or E Category A premiums, for cars with engine displacement of up to 1,600cc, have been on the rise for the past ten out of 11 continuous bidding exercises. And as of today, premiums under Category A ended at $83,751 - $6,447 higher compared to the previous tender - which amounts to a percentage difference of 7.6 percent.

The last time premiums under Category A ended above the $80,000 mark was after the 1st bidding exercise in February at $87,109.

Premiums for Category B, for cars with engine displacement above 1,600cc, ended the day at $86,239 - a colossal increase of $9,139 - or a near 10.6 percentage increase in comparison to the last bidding exercise, where premiums under this category ended at $77,100.

Today's bid is the fifth highest ever recorded out of the past 18 bidding sessions for the year thus far.

The Open Category, or commonly known as Category E, ended at $87,001 after a 8.04 percentage increase from the previous bidding tender. After September's first bidding exercise, premiums in this Category ended at $80,000 flat. This is the fourth successive bidding session where premiums in this Category have increased and today's amount is the highest recorded in the past six months.

As predicted earlier, the increase across all categories is a natural reaction to the recently announced tweaks to the criteria in the COE system, where cars powered by engine up to 1,600cc of displacement must not have a power output of more than 130bhp.

While this ensures Asian mainstream cars will need not have to compete with premium models, tagging performance with the long familiar engine capacity has also affected a number of Continental models, such as the Volkswagen Golf Sport, that utilises hybrid or turbocharging technologies to extract more performance out of minuscule engines.

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