Outlook for 2015 and 2016
Because of the bumper crop of COEs released from 2004 to 2006, the number of cars that are due to be deregistered in 2015 and 2016 is expected to increase, which means more COEs will be released. Vynn Tan, marketing manager at Wearnes Automotive, is optimistic that this will soften car prices. But the large group of owners scrapping their cars also means the demand for new cars will correspondingly increase. If COE prices fall, it will almost certainly trigger a buying reaction from customers, which will push up prices again, predicts Volkswagen Group Singapore.