COE analysis August 2nd round

This round COE shot up again and closed quite high in recent history. Cat A up $1,088 to $12,989. Cat B up $1,389 to $13,890. The reasons threw in the market for the increase are that many new models are released and also the dealers are afraid that the COE quota for next 6 months will down. So they are rushing to secure the COE as much as possible by this round. It is uncertain if the COE quota will reduce or not. If LTA reduces the quota, this will further push up the COE price and in turn the car prices. But market overall believes that this might not happen. Market leader Toyota feels that LTA has no basis to cut the quota as the number of cars scrap this year are still very high. So who is right and who is wrong? Only time will tell. Next round is the one to be take note of to see how the trend goes for the next 6 months.