Some car buyers have to top up payment after COE prices soared

Some car buyers have to top up payment after COE prices soared
By Sharon See, Kristine Lim | Posted: 19 April 2010 2215 hrs

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SINGAPORE : Some car buyers who had ordered their vehicles just before recent jump in COE prices have ended up paying more.

They had chosen the "Non-guaranteed COE", and would now have to pay an additional S$10,000.

Car dealers said most buyers opted for "non-guaranteed COE" when COE prices were on a downward trend.

This reversed when COE prices started climbing, with more going for "guaranteed COE", even if they had to pay S$3,000 to S$5,000 more.

COE prices for small cars have nearly doubled since January. Now, COE prices for small cars stood at S$34,000, up from about S$18,000 three months ago.

Some car dealers said industry players are struggling to cope with the increase.

The Singapore Vehicle Traders Association (SVTA) said it is important to pick the right COE package at the time of purchase.

It also warned that verbal agreements with car dealers are not enough, adding that it is best to have everything spelt out in black and white in the form of a contract.

SVTA Honorary Secretary Raymond Tang said: "Some dealers say their company has never failed in bidding for a COE before, but this doesn't mean they won't fail to do so in the future."

Car dealers said buyers can also ask for a refund of their deposit, but most of them have chosen to top up instead.

- CNA/al

- wong chee tat :)