CAR showrooms have reportedly collected at least 3,000 orders over the weekend - three to four times the normal volume - and many have started raising prices.
Most bookings were for models with engines up to 1,600cc. This group's certificate of entitlement (COE) premium crashed to $2 last Wednesday, triggering price cuts and a buying frenzy.
Toyota agent Borneo Motors, said to have collected the most bookings after slashing prices by as much as $6,000, has made a few increases since last week. The price of the basic Corolla Altis, for instance, had been raised three times to $53,988, from $52,488 at its lowest.
Borneo managing director Koh Ching Hong said the crowds were still fairly big yesterday, "which is surprising for a Monday".
Mitsubishi agent Cycle & Carriage, which said last weekend's sales were "far better than before", will raise prices by $1,000 on Thursday. Cycle & Carriage's general manager (Mitsubishi) Alvyn Ang said many who bought over the weekend were first-timers "who've been sitting on the fence for a long time".
Over at Nissan agent Tan Chong, general manager Ron Lim said he had "lost count" of the number of people who turned up, but "it was in the thousands". Tan Chong upped prices by $500 yesterday.
Mr Glenn Tan, chief executive of Subaru agent MotorImage, said: "I think there are 3,000 to 4,000 orders out there. Cars were parked along the side of the road...salesmen were conducting test-drives well into the night. "We've not seen this kind of crowd in more than a year," he added. MotorImage has increased prices by $500.
Mr Vincent Ng, product manager at Honda agent Kah Motor, said sales had returned to "pre-financial crisis figures".
Honda prices are often the highest among Japanese cars, and Mr Ng said Kah is not revising them as yet.
"Companies raising prices is not necessarily an indication they have enough orders," he said.
"They could also be pressuring customers to commit."
The sales rally is not confined to Japanese brands. Volkswagen, traditionally a small player, reported that over 1,000 people visited its showroom over the weekend, largely drawn by its record low Beetle prices. The 1.6-litre version is going for $61,800, down from $67,800 before the COE crash.
While motor traders were unanimous about COE prices rebounding in the next tender, views differed about the quantum. Observers said it depends on how many buyers manage to secure loans.
There are other factors as well, including the number of Open COEs - which can be used for any vehicle type but are valid for three months instead of the usual six - dealers are holding. At the moment, Open certificates worth $12,000-$15,000 are fast expiring.
Mr Tan of MotorImage said: "One reason for the $2 crash was because many dealers had Open COEs on hand."
The next COE tender closes on Dec 3, where about 3,700 certificates will be available for car buyers: some 1,860 for cars up to 1,600cc, 1,100 for cars above 1,600cc and 760 for Open.
This article was first published in The Straits Times on Nov 26, 2008.
