In the first April 2015
COE bidding starting tomorrow, I predict
COE prices will continue to rise. This is most likely so for Cat A
COE as replacement demand is very, very high. We can expect the number of bids for Cat A (demand) to be more than 2000 whereas the number of Cat A
COE available (supply) for bidding is less than 1000.
So, with demand so much greater than supply, Cat A
COE will likely rise to $68 or more. Don't forget it was $90k plus in recent years. So, with high demand, expect prices to eventually go back to that level especially since there is no clawback announced thus far. I predict it will go to $100k by 2018. So, it is best to change to a new car now if your car is 4 years old or older.
COE at $70k and below for Cat A is consider cheap, in my opinion.
Many families are richer today than 10 years ago. Many are also buying their second or third cars as their needs increases. For instance, the wife will want to buy a new car for herself for work convenience and the son will need a new car to go to Uni so he does not spend too much time traveling. So as family needs rise, so will demand for new cars. And with prosperity from higher family income, from gains in the stock market and property market, more people are richer and so demand for new cars will increase by a lot.