What is COE?
The Certificate of Entitlement (COE) is a quota licence required to register, own, and use a vehicle in Singapore. Introduced in 1990 under the Vehicle Quota System (VQS), it gives the holder the right to register, own, and use a vehicle for 10 years.
Singapore is one of the few countries in the world that requires a separate licence to own a car, in addition to a driving licence. This system helps the government control the vehicle population growth to manage traffic congestion and land use.
How the COE Bidding System Works
COE prices are determined through an open bidding process conducted by the Land Transport Authority (LTA). Here's how it works:
Bidding Schedule
- Frequency: Twice a month (1st and 3rd Monday)
- Duration: Each exercise runs for 3 working days
- Results: Announced on Wednesday afternoon
The Bidding Process
- You submit your bid through an authorised dealer or directly via OneMotoring
- Bids can be revised upward during the exercise
- At close, the lowest successful bid in each category becomes the Quota Premium (QP)
- All successful bidders pay the QP, not their actual bid amount
This is a uniform-price auction: everyone pays the same price regardless of how much they bid.
The 5 COE Categories
| Category | Vehicle Type | Power/Engine Limit |
|---|---|---|
| A | Cars | Up to 1,600cc and 130bhp, or EVs up to 110kW |
| B | Cars | Above 1,600cc or 130bhp, or EVs above 110kW |
| C | Goods vehicles and buses | No limit |
| D | Motorcycles | No limit |
| E | Open (any vehicle) | No limit |
Category E is an open category that can be used for any vehicle type. It typically attracts the highest premiums because of its flexibility.
Which Category Should You Choose?
For most car buyers, it comes down to Category A vs B:
- Category A: Smaller, more fuel-efficient cars: Toyota Corolla, Honda Civic base models, most EVs
- Category B: Larger, more powerful cars: BMW 3 Series, Mercedes C-Class, Tesla Model 3 Performance
If both categories have similar premiums, some buyers choose Category E for flexibility in case they want to transfer the COE to a different vehicle type later.
Current COE Landscape
COE premiums fluctuate based on supply and demand. Key factors affecting prices:
- Quota supply: Determined by deregistrations + new quota allocation
- Economic conditions: During recessions, demand typically drops
- New model launches: Popular models can spike demand in specific categories
- Speculation: Some buyers time purchases based on expected price movements
Check our COE Premiums page for the latest prices and trends.
COE Renewal (PQP)
When your 10-year COE expires, you have two options:
- Deregister the vehicle and claim any remaining PARF rebate
- Renew the COE for another 5 or 10 years
Renewal costs are based on the Prevailing Quota Premium (PQP): a moving average of recent COE prices in your category. See our PQP Rates page for current rates.
Renewal Terms
- 10-year renewal: Pay 100% of PQP
- 5-year renewal: Pay 50% of PQP
Note: Renewed COEs do not qualify for PARF rebates.
Tips for COE Bidding
- Monitor trends: Track prices over several months before deciding
- Consider timing: Prices often dip slightly in January and during economic uncertainty
- Factor in all costs: COE is just one component: remember ARF, OMV, and other fees
- Paper bids: Let your dealer handle bidding through a "paper bid" for convenience
Frequently Asked Questions
How long is a COE valid?
A COE is valid for 10 years from the date of registration. After that, you can renew it for another 5 or 10 years.
Can I transfer my COE to another vehicle?
No, COEs are tied to the specific vehicle. However, Category E COEs offer flexibility during initial registration.
What happens if my bid fails?
Your deposit is returned, and you can bid again in the next exercise.