The Certificate of Entitlement (COE) is the legal requirement to register and drive a vehicle in Singapore. Understanding what it is, how much it costs, and seeing the COE trends are all important components of being able to own your dream vehicle.
Join us now as we get all the COE facts here, from COE prices and COE bidding information to COE results and more.
Table of Contents
What is a COE in Singapore?
A Certificate of Entitlement (COE) is an essential document that grants permission for individuals, companies, and other entities to own a vehicle in Singapore.
The COE is issued by the Land Transport Authority (LTA) and is necessary to be able to drive on Singapore’s roads. Without it you won’t be able to go anywhere.
A COE grants you the right to own your dream car within 10-years and is renewable after it expires. When bidding for your COE, you are also subject to a quota constraint as there are only limited COEs available each month.
Established in May 1990, the Certificate of Entitlement (COE) system was implemented by the Transportation Unit of Singapore’s Public Works Department (PWD). The increasing affluence of the city-state brought an exponential rise in vehicle usage, prompting a quota limit to control the number of vehicles on the roads. Previous attempts to mitigate this through increased taxation were proving to be ineffective and thus the COE system was born.Singapore, National Library Board
What is COE Bidding?
Certificate of Entitlement (COE) bidding is the process of obtaining a certificate that enables an individual to register a vehicle in five categories under the Vehicle Quota System (VQS), which caps the number of new vehicles that can be registered in Singapore.
These 5 COE categories are:
|Type of Vehicle
|Non-fully electric cars with engines up to 1,600cc and Maximum Power Output up to 97kW (130bhp); and fully electric cars with Maximum Power Output up to 110kW (147bhp)
|Non-fully electric cars with engines above 1,600cc or Maximum Power Output above 97kW (130bhp); and fully electric cars with Maximum Power Output above 110kW (147bhp)
|Goods vehicle and bus
|Open – all except motorcycle
Category E is open and can come in handy if a dealer fails to secure a Category A or B COE for your car purchase.
If you are interested in participating in the COE Open Bidding Exercise, you can do so on the first and third Mondays of each month starting at 12 pm.
The exercise lasts over two days until 4 pm on Wednesday when the outcome of the bidding is announced. With it being a lengthy and tedious process, those who hope to buy cars may decide to leave this task up to the car dealers.
You can find out the COE bidding dates in 2023 at our COE page.
What are the COE Prices?
Prices for the COE depend on demand and vary every month. The average successful bid rate per category can be seen on our COE page.
Depending on the type of vehicle you’re looking to purchase, different categories will have different prices. In general, cars usually carry a higher price than bigger commercial vehicles like vans or buses.
What COE packages are offered by new car dealers
New car dealers offer various COE packages to customers, the prices of which usually consists of the variable factor. These packages are mainly differentiated by their pricing, with Package 1 being the most affordable and Package 5 typically being the priciest. Different packages contain different features, thus it is important for buyers to evaluate these features before making a purchase decision.
- Non guaranteed COE
- Guaranteed COE at $X
- Guaranteed COE without top-up
- Guaranteed COE with COE rebate at $X
- Immediate delivery
What is a non-guaranteed COE?
When you go for a non-guaranteed Certificate of Entitlement (COE) package, there is no assurance that you will get your vehicle at the end.
You will be paying a booking fee first and the dealer will then bid for a COE for three months. If he fails to secure a COE at the end of this duration, your deposit will be refunded.
This option can be tempting because it is cheaper, but it is also the riskiest since whether or not you’ll get your car rests entirely on the dealer’s discretion.
What is a guaranteed COE at $X?
Under this package, car dealers offer to bid on the Certificate of Entitlement (COE) at a certain amount, usually higher than the market rate. If the price of the COE falls below this promised amount by the time it is allocated, then you have secured your COE.
However, if the promised bid price is too low compared to current market prices, you may not be able to get a COE despite your payment. On top of that, dealers might even ask for extra payment for them to secure a COE for you.
What is a guaranteed COE without top-up?
The guaranteed COE without top-up package offers a simple and risk-free way to purchase a new car. The dealer guarantees that you will be issued with a Certificate of Entitlement (COE) within three months at which point you should be able to drive away your brand new car with no additional cost. This is an incredibly attractive option for those looking to purchase their dream set of wheels.
What is a guaranteed COE with COE rebate at $X?
Most authorised distributors offer the Guaranteed COE with COE rebate package. This is similar to the Guaranteed COE without top-up, however it also comes with an additional clause that provides you with a rebate on your COE fee.
The Certificate of Entitlement (COE) rebate is a refund from car dealers when the price of the COE that they offer is below a specific amount. The exact rebate amount will vary depending on the price of the COE and is capped at a certain amount.
E.g: Toyota offered a Guaranteed COE with COE rebate at $50,000.
If the COE price is $47,000, the rebate, which is the money you’ll get back will be $3,000.
What is immediate delivery?
If you absolutely need to have a car as soon as possible. You can opt for the immediate delivery COE.
This package includes a Category E COE which is transferable and likely stocked by the car dealer.
Though the cost can be higher than opting for regular COE bidding, this option gives buyers the convenience of getting their new car without waiting through the bidding process.
For those who need a car urgently or are replacing an old one, immediate delivery can be an option as you could drive off your new vehicle in as fast as 7 days.
How to participate in the COE bidding process?
The open bidding concept is a process for making COE purchases. All potential buyers are aware and up-to-date on the current price of the COE throughout the bidding process.
Those interested in acquiring a COE need to enter their reserve price, or the highest amount they are willing to pay, and then compete against other bidders.
- If the COE Price at the time of bidding is lower than your set reserve price, then your bid will be considered in the running.
- During the COE bidding process, if the current COE price is higher than your predetermined reserve price, then you won’t be able to make a successful bid unless you revise your reserve price.
- At the close of a COE bidding exercise, the successful bidders will all pay the Current COE Price, regardless of their own individual reserve price. For example, if an individual’s reserve price is $85,000 but the closing price is $80,000, they will pay $80,000 for their Certificate of Entitlement (COE).
There are 2 ways to submit your bid for COE:
- For individual: Via DBS or POSB ATMs only. Your bid will be tied to the ID of the ATM card you are using. If your bid is successful, the vehicle can only be registered under this ID.
- A company or an organisation: Via Internet banking with DBS, UOB, or Maybank – for corporate accounts only.
To be eligible to place a bid for a Certificate of Entitlement (COE), you must meet the minimum age requirement of 18 years old and should only use your own ID, name, and bank account. Additionally, you are allowed to submit only one bid per exercise and cannot submit a bid on behalf of others using your own bank account.
If you are bidding for a company or an organisation, you may submit multiple bids in one exercise.
How to check for COE results and when are they updated?
When the COE bidding is closed on the third Wednesday of each month, the results for COE are updated within an hour.
You can check for the official results in a few different ways – via our Carsnap COE page, email subscription or via text messages from LTA (Land Transport Authority).
If you have owned a car for 10 years, upon the expiration of your Certificate of Entitlement (COE), you can decide whether to scrap it or renew the COE with either a 5-year or 10-year period.
Scrap your car
Scrapping your car can entitle you to a PARF rebate. PARF stands for Preferential Additional Registration Fee, and if your car is still under 10 years of age (original COE), then you can receive the scrap value when the original COE expires. Just be aware that renewing your COE will forfeit the PARF rebate.
Renewing your Certificate of Entitlement (COE) for your car is a decision that you need to take carefully. Before renewing, it is important to evaluate the condition of the car as well as the prevailing COE prices. At the time of renewal, you will need to pay the Prevailing Quota Premium (PQP).
This consists of the moving average of COE prices for the vehicle type within the last three months prior to renewal, and could be costly if COE prices are at their peak.
Additionally, after 10 years of owning a car, its condition may have deteriorated significantly so many people opt to forego their current vehicle and buy a new one instead. You can also choose to sell your car before the COE expires.
How can I get the lowest COE for my car?
When is the best time to buy a car to get the lowest COE?
COE prices fluctuate monthly, so it’s important to time your purchase during a period when COE prices are low.
How does the category of car affect the COE price?
COE prices vary depending on the category of car you’re buying. Category A cars (up to 1600cc) generally have a lower COE compared to Category B cars (above 1600cc).
How does the age of the car affect the COE price?
The age of the car affects the COE price. The older the car, the lower the COE price.
How can I bid for a COE and get a lower price?
If you plan to bid for a COE, bid aggressively to increase your chances of getting a lower COE price.
What else should I consider when trying to get the lowest COE price?
Keep in mind that COE prices are determined by demand and supply in the market, so it’s important to do your research and stay up-to-date with the latest trends and news to make an informed decision.
Can I Pay My COE in Instalments?
No, the LTA does not permit payment of COE in instalments. However, you have the option of obtaining COE renewal loans from banks or financing institutions. These loans allow you to pay the lump sum amount upfront, and then you can repay the loan in convenient instalments to the bank. This way, you can manage the financial burden of COE renewal more effectively.
What is COE and how does it work?
A COE gives you the right to own a vehicle in Singapore for 10 years. To register your vehicle, you must first place a bid through the open-bidding exercises which take place twice a month. Successful bidders are awarded the right to own their vehicle and use it on public roads.
How much does a COE cost in Singapore?
The cost of a Certificate of Entitlement (COE) fluctuates depending on supply and demand, as determined by COE bidding exercises. In 2018, the lowest COE price ever was recorded at $2. Currently, Category A will typically costs between $80,000 – $86,000 while Category E will cost over $118,000. It is expected that prices may rise further in 2023.
Will COE price go down in 2023?
As the COE supply is going to remain low until 2023, it is likely that COE prices will be high. Although COE prices are expected to go down from August, experts predicted that this shift may not occur until November or later in 2023.
How to check car COE expiry date?
If you’re a car owner and need to check your COE expiry date, it’s easy to do so online. Simply log in to your e-Services@ONE.MOTORING account using your SingPass, and you’ll be able to view your COE expiry date as well as the PQP rate that applies to your vehicle. This information is readily available and can be accessed from the comfort of your own home.
How do I renew my COE?
If you’re looking to renew your Certificate of Entitlement (COE), the first step is to check the latest Prevailing Quota Premium (PQP) rate for your vehicle category. This rate changes monthly, so it’s important to stay up-to-date. The PQP rate for your renewal will depend on the date you choose to renew and your COE expiry date. You can renew your COE online for either 5 or 10 years, depending on your vehicle category and the statutory lifespan of your vehicle. To avoid late renewal fees, be sure to renew your COE before it expires.
How many times can you renew COE?
In Singapore, you are allowed to renew your COE (Certificate of Entitlement) for a maximum of 5 years only once. After the 5-year renewal period is up, you will not be able to renew it again and will have to deregister your vehicle. However, for private cars, there is no limit to the number of times you can renew the COE as long as it is renewed for 10 years at a time. This is because private cars do not have a statutory lifespan.
How to calculate COE renewal price?
If you’re looking to renew your COE, calculating the cost is actually quite simple. All you need to do is find the Prevailing Quota Premium (PQP), which is the average of COE premiums from the past three months in the category you’re renewing. For example, if you’re renewing a Category A COE in October, you’ll need to find the average COE price from July, August, and September. This rate will vary depending on the date you choose to renew and your COE expiry date.
How to find out the latest COE bidding price and dates?
If you’re looking to stay up-to-date on the latest COE bidding price and dates, look no further than our COE resource page. Here, you’ll find all the information you need on the latest COE bidding prices. Additionally, if you’re planning ahead for 2023, we’ve got you covered with a comprehensive article listing all the COE bidding dates in 2023.
Why is COE so high in Singapore?
The Certificate of Entitlement (COE) system in Singapore is designed to regulate the number of vehicles on the road and reduce traffic congestion. The government limits the number of COEs available each year, which creates a competitive bidding process that drives up prices. Additionally, Singapore’s high population density and limited land space make car ownership a luxury, further driving up demand and prices. As a result, COE prices can be incredibly high, making car ownership in Singapore a costly endeavor.
Will COE prices ever go down?
Many people wonder if COE prices will ever go down. Unfortunately, the outlook for the near future is not promising. The current economic climate and low COE supply are contributing to the high premiums we are seeing. Experts predict that these factors will continue to impact COE prices, and we may not see a significant drop in premiums until at least the first half of 2023.