Chart of the Day: See the massive spike in car de-registrations due in 2015

But COE premiums will stay elevated.

This chart from the Monetary Authority of Singapore (MAS) shows that there will be a sharp surge in vehicle de-registrations this year.

This comes on back of over 100,000 vehicles that will be between 9-10 years old this year. Under the Certificate of Entitlement (COE) system, most cars will have to be scrapped after a decade.

However, the MAS warns that COE premiums will remain elevated as there is firm replacement demand.

“Current car COE premiums remain significantly higher than in early 2010 when quotas were at similar levels, partly owing to firm replacement demand. Thus, even with the expected surge in car COE quotas for the rest of the year, arising from the large number of cars due for de-registration, COE premiums could fall only moderately,” stated the MAS.

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