Singapore Car Jargon Buster: 50+ Terms Every Buyer Must Know
The Ultimate Singapore Car Terminology Guide
Buying a car in Singapore means navigating a unique maze of acronyms, fees, and systems that don't exist anywhere else. Whether you're a first-time buyer, an expat new to Singapore, or just trying to understand what your dealer is talking about, this guide has you covered.
We've organized these terms alphabetically. Click any letter to jump to that section, or use Ctrl+F to search for a specific term. For deeper explanations of key terms, see our full Glossary.
A
Additional Registration Fee (ARF)
A tax paid when registering a new vehicle in Singapore, calculated as a percentage of the vehicle's OMV. The ARF is tiered: 100% on the first $20,000 of OMV, 140% on the next $30,000, and 220% on the remainder above $50,000. For example, a car with a $40,000 OMV pays $20,000 (100% × $20,000) + $28,000 (140% × $20,000) = $48,000 in ARF. The ARF is partially refundable if the car is deregistered before the COE expires — see PARF Rebate.
Approved Permit Holder (APH)
A dealer licensed by LTA to import and register new vehicles in Singapore. Only APHs can bid for COEs on behalf of buyers.
Authorised Dealer
A dealership officially appointed by a car manufacturer to sell and service their brand in Singapore. Examples: Borneo Motors (Toyota), Cycle & Carriage (Mercedes-Benz). Compare with Parallel Importer.
B
Bidding Exercise
The twice-monthly process (1st and 3rd Wednesday, typically) where COEs are allocated through competitive sealed-bid auction. Bidding opens at 12pm on the Monday and closes at 4pm on the Wednesday. Each bidder submits a single sealed bid.
Buyer's Premium
Often used informally to describe the additional margin that car dealers add on top of the base car price and COE. Not an official government term.
C
Carbon Emissions-based Vehicle Scheme (CEVS)
Predecessor to the current VES. Offered rebates for low-emission vehicles and surcharges for high-emission ones. Replaced by VES in 2018.
Category A/B/C/D/E
The five COE categories: A = Cars ≤1,600cc or ≤$20,000 OMV; B = Cars >1,600cc or >$20,000 OMV; C = Goods vehicles and buses; D = Motorcycles; E = Open (any vehicle type). See our detailed category guide.
Certificate of Entitlement (COE)
A licence that grants the right to register, own, and use a vehicle in Singapore for 10 years. Obtained through a bidding exercise. The COE is the single largest cost component of car ownership in Singapore. See our What is COE? guide.
COE Renewal / Prevailing Quota Premium (PQP)
At the end of the 10-year COE period, owners can renew for 5 or 10 additional years by paying the PQP — a moving average of recent COE prices. The PQP is recalculated quarterly. Renewal does not require a new bidding exercise.
D
Dealer Margin
The profit margin a car dealer adds to the vehicle price. This is negotiable and varies between dealers. Typically $2,000-$10,000 for mass-market brands and $5,000-$20,000+ for luxury brands.
Deregistration
The process of removing a vehicle from Singapore's register. Triggers PARF rebate (if applicable) and releases a COE quota back into the system for the next bidding exercise. Vehicles can be deregistered for scrapping, export, or when the COE expires.
E
Electronic Road Pricing (ERP)
Singapore's congestion pricing system. Gantries at busy roads charge vehicles during peak hours. Rates vary by location and time. The next-generation ERP 2.0 system using satellite-based tracking is being phased in from 2024.
Excise Duty
A 20% tax on the OMV of all vehicles imported into Singapore. This is paid in addition to GST and ARF.
G
GST (Goods and Services Tax)
Singapore's value-added tax, currently at 9% (raised from 8% in January 2024). Applied to the OMV + excise duty of the vehicle.
L
LTA (Land Transport Authority)
The government agency responsible for Singapore's land transport infrastructure. Administers the COE system, vehicle registration, road tax, and ERP. Website: lta.gov.sg.
O
Off-Peak Car (OPC)
Also known as the "Weekend Car" scheme. Vehicles registered as OPC pay a significantly reduced ARF but can only be driven during off-peak hours: weekdays after 7pm, weekends, and public holidays. Daily usage requires a $20/day supplementary licence.
OneMotoring
LTA's online portal for all vehicle-related services: COE bidding, road tax renewal, appointment booking, and vehicle information enquiries. Website: onemotoring.lta.gov.sg.
Open Market Value (OMV)
The assessed price of a vehicle at the point of import, determined by Singapore Customs. Includes the purchase price, freight, insurance, and all costs to bring the vehicle to Singapore. The OMV is the base on which ARF, excise duty, and GST are calculated. It is not the same as the retail price you pay at the showroom.
P
PARF (Preferential Additional Registration Fee) Rebate
A partial refund of the ARF paid at registration. If a car is deregistered within its 10-year COE period, the owner receives back a proportion of the ARF: 75% in years 1-5, decreasing to 50% in years 6-7, 25% in years 8-9, and 0% in year 10. This creates a financial incentive to deregister within the first COE period rather than renewing.
Parallel Importer (PI)
A car dealer who imports vehicles independently, not through the official manufacturer channel. PIs often offer lower prices because they source from markets with cheaper base prices. Trade-off: warranty and servicing may differ from authorised dealers.
Prevailing Quota Premium (PQP)
The price paid to renew a COE at the end of its 10-year period. Calculated as a 3-month moving average of COE prices for the relevant category. Reviewed and published quarterly by LTA. See current PQP values on our dashboard.
Q
Quota Premium (QP)
The COE price determined by the bidding exercise — specifically, the bid amount of the lowest successful bidder. All successful bidders pay this same price, regardless of their actual bid amount (uniform price auction). Often used interchangeably with "COE price".
R
Road Tax
An annual tax required to operate a vehicle on Singapore's roads. Calculated based on engine capacity (for petrol/diesel) or power output (for electric vehicles). Ranges from ~$700 for small cars to $5,000+ for large-engine vehicles. Payable every 6 or 12 months.
Registration Fee
A flat fee of S$220 paid when registering a new vehicle. Relatively minor compared to other costs.
S
Scrap Value
The financial value recovered when a vehicle is deregistered. Includes PARF rebate (if applicable) + COE rebate (prorated remaining months) + scrap metal value. Our Renew vs Scrap calculator helps estimate this.
T
TDSR (Total Debt Servicing Ratio)
MAS (Monetary Authority of Singapore) regulation limiting total monthly debt payments to 60% of a borrower's gross monthly income. Applies to car loans. If your monthly housing, car, and other loan payments exceed 60% of income, the bank cannot approve additional lending.
Transfer Fee
The fee paid when a vehicle's ownership is transferred from one person to another (e.g., buying a used car). Currently S$35.
V
Vehicle Emissions Scheme (VES)
A scheme that provides rebates (up to S$25,000) for vehicles with low emissions and imposes surcharges (up to S$25,000) for high-emission vehicles. Applies at the point of registration. Electric vehicles typically qualify for the maximum rebate.
Vehicle Quota System (VQS)
The overarching framework that determines how many new vehicles can be registered each period. The COE system operates within the VQS. Quotas are set quarterly by LTA based on the number of vehicles deregistered plus any allowed growth rate (currently 0% for cars).
Frequently Asked Questions
What's the difference between OMV and ARF?
OMV is the assessed import value of the car. ARF is a tax calculated as a percentage of the OMV. Think of OMV as the base and ARF as the tax on that base.
What's the difference between COE and PQP?
COE is the premium you pay for a new 10-year certificate via bidding. PQP is the price you pay to renew an existing COE (5 or 10 years) — it's based on a moving average of recent COE prices, not bidding.
What does "Category E Open" mean?
Category E is the "Open" category — a COE that can be used for any vehicle type (car, motorcycle, goods vehicle). It's popular with buyers of Category B cars who want to avoid the higher Category B premiums, and vice versa. Category E prices usually track between Category A and B.