No one could’ve predicted that COE prices would continue to fall in 2019, despite two major changes that have happened this year.
The first is the move from the Carbon Emissions-based Vehicle Scheme (CEVS) to the more holistic Vehicular Emissions Scheme (VES) which takes into account another 4 pollutants.
Unfortunately, this means that cars which used to enjoy rebates due to lower carbon dioxide emissions may now cost more due to surcharges thanks to VES. The addition of the 5th pollutant, particulate matter, in VES was expected to cause a rise in COE prices due to increased demand, as buyers scrambled to buy vehicles before costs increase in July. That didn’t happen.
The other change is the announcement that vehicle growth rate would drop to 0%, effective February 2018. This essentially means that no new COEs would be issued for cars [...]