The ripple effects of high COE prices, beyond driving up the cost of new cars

Motor dealers had expected that 2022 and 2023 would be difficult years, with fewer COEs available than in previous years. PHOTO: ST FILE
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SINGAPORE - A “cheap” car has become increasingly rare these days, and it is not just because of rising certificate of entitlement (COE) premiums.

Some smaller mass-market models are vanishing from showrooms. Motor dealers are not keen to hold stock for such cars, which are becoming harder to sell as their high sticker price due to surging COE premiums makes them too expensive for the typical mass-market car buyer.

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