The COE for motorcycles has dropped from $12,179 to $5,007 because of some tweaks that LTA made to try to reduce COE prices for motorcycles.
Many of the smaller motorcycles costs about $4,000 and having a $12,000 COE would mean you are paying 3 times the machine price for a piece of paper.
A high COE for motorcycle drives up the cost for everyone. Businesses need courier services, delivery needs motorcycles for cheap, efficient and fast transportation. Motorcycles also are less likely to be caught in a jam. So a high COE price will drive up motorcycle prices and business costs, which eventually affect consumers.
During the last round of high COE in March 2017, where COEs hit a high of $8,081, the government increase the ARF for motorcycles which simply made motorcycles more expensive and within a year, the COE has shot up again, and yes, the overall motorcycle prices has also gone up because the taxes were increased.
Now, with the shortening of TCOE duration, the motorcycle COE dropped to $5,007, which costs more than the cheapest motorcycles, but the market seemed to go crazy and we see a frenzy of motorcycle buying which with no surprise, drives up the COE again.
As of now, the COE is $6,516, already higher than the $5,007, and this can be seen as the Kiasu…
