Dealers Bidding up COE Premiums while Keeping Car Prices Stable

Debated in Parliament on 4 Nov 2025.

Summary written by AI (learn more)

Mr. Foo Cexiang raised concerns about car dealers potentially inflating COE premiums while keeping vehicle prices stable and suggested that only prospective buyers should be allowed to bid for COEs.
Jeffrey Siow responded that vehicle prices have generally increased alongside COE premiums, but not at the same rate, and attributed this to various factors including government subsidies and market values.
Siow clarified that buyers can bid for their own COEs and there is no evidence that dealers are artificially inflating COE prices beyond buyer willingness.
Some buyers prefer to have dealers bid on their behalf for convenience, indicating a mixed preference in the bidding process.

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Full Transcript

Foo Cexiang

Mr Foo Cexiang asked the Acting Minister for Transport (a) whether LTA has detected any trend of car dealers bidding up COE premiums while keeping vehicle sale prices relatively stable; and (b) whether the Ministry will consider only allowing prospective vehicle buyers to bid for new COEs, rather than dealers.

Jeffrey Siow

Vehicle sale prices generally have risen in tandem with higher Certificate of Entitlement (COE) premiums, but not to the same extent. Other factors, including lower Open Market Values and Government subsidies on electric cars, have contributed to higher COE bids.

The COE clearing price is set at the highest unsuccessful bid plus $1. Today, car buyers have the option of bidding for their own COEs instead of through their dealers. There is no evidence car dealers are bidding up COE prices beyond what buyers are prepared to pay. Some buyers also prefer car dealers to bid on their behalf for convenience.

Summary written by AI (learn more)

Mr. Foo Cexiang raised concerns about car dealers potentially inflating COE premiums while keeping vehicle prices stable and suggested that only prospective buyers should be allowed to bid for COEs.
Jeffrey Siow responded that vehicle prices have generally increased alongside COE premiums, but not at the same rate, and attributed this to various factors including government subsidies and market values.
Siow clarified that buyers can bid for their own COEs and there is no evidence that dealers are artificially inflating COE prices beyond buyer willingness.
Some buyers prefer to have dealers bid on their behalf for convenience, indicating a mixed preference in the bidding process.

Questions identified by AI (learn more)

Dealers Bidding up COE Premiums while Keeping Car Prices Stable | PAPERCUTS

Dealers Bidding up COE Premiums while Keeping Car Prices Stable

Debated in Parliament on 4 Nov 2025.

Summary written by AI (learn more)

Mr. Foo Cexiang raised concerns about car dealers potentially inflating COE premiums while keeping vehicle prices stable and suggested that only prospective buyers should be allowed to bid for COEs.
Jeffrey Siow responded that vehicle prices have generally increased alongside COE premiums, but not at the same rate, and attributed this to various factors including government subsidies and market values.
Siow clarified that buyers can bid for their own COEs and there is no evidence that dealers are artificially inflating COE prices beyond buyer willingness.
Some buyers prefer to have dealers bid on their behalf for convenience, indicating a mixed preference in the bidding process.

Questions identified by AI (learn more)

Full Transcript

Foo Cexiang

Jeffrey Siow

Summary written by AI (learn more)

Mr. Foo Cexiang raised concerns about car dealers potentially inflating COE premiums while keeping vehicle prices stable and suggested that only prospective buyers should be allowed to bid for COEs.
Jeffrey Siow responded that vehicle prices have generally increased alongside COE premiums, but not at the same rate, and attributed this to various factors including government subsidies and market values.
Siow clarified that buyers can bid for their own COEs and there is no evidence that dealers are artificially inflating COE prices beyond buyer willingness.
Some buyers prefer to have dealers bid on their behalf for convenience, indicating a mixed preference in the bidding process.

Questions identified by AI (learn more)

Dealers Bidding up COE Premiums while Keeping Car Prices Stable

Summary

Questions Identified

Full Transcript

Foo Cexiang

Jeffrey Siow

Summary

Questions Identified

Dealers Bidding up COE Premiums while Keeping Car Prices Stable

Summary

Questions Identified

Full Transcript

Foo Cexiang

Jeffrey Siow

Summary

Questions Identified