Frequently Asked Questions — COEkaki

COE stands for Certificate of Entitlement. It is a licence that gives the holder the right to register, own, and use a vehicle in Singapore for a period of 10 years.

There are 5 categories: Cat A (cars up to 1,600cc), Cat B (cars above 1,600cc), Cat C (goods vehicles and buses), Cat D (motorcycles), and Cat E (open category for any vehicle except motorcycles).

COE bidding exercises are held twice a month, typically on the first and third Wednesdays.

COE bidding uses a sealed-bid, uniform-price auction format. Bidders submit a reserve price — the maximum they are willing to pay. The system automatically raises the current price in S$1 increments. As the price rises, bidders whose reserve price is exceeded are eliminated. When the number of remaining bidders equals the available COE quota, bidding closes. All successful bidders pay the same final price, called the Quota Premium (QP), regardless of how high their individual reserve prices were. Each exercise runs for three working days, typically from 12pm Monday to 4pm Wednesday.

When buying a new car, dealers typically offer two types of COE packages. A Guaranteed COE package means the dealer will secure your COE at a fixed price within a stated period, even if COE prices rise in subsequent rounds — you pay no top-up. If the actual COE price falls below the guaranteed amount, you receive a rebate for the difference. A Non-Guaranteed COE package is usually cheaper upfront, but if the dealer's bid is unsuccessful or COE prices rise, you may need to top up or wait longer for your car.

Only Category C (goods vehicles and buses) and Category E (open category) COEs obtained by individuals can be transferred, and each may only be transferred once. COEs in Categories A, B, and D are non-transferable. COEs obtained by companies in any category also cannot be transferred. In practice, most buyers bid for a COE with a specific vehicle purchase already arranged, so transfers are uncommon.

PQP stands for Prevailing Quota Premium. It is the three-month moving average of COE prices and is the price you pay to renew your COE for another 5 or 10 years.

Yes, you can renew your COE before it expires. You can choose to renew for 5 or 10 years at the Prevailing Quota Premium (PQP) of the corresponding vehicle category.

If you do not renew your COE, you must deregister your vehicle. You may be entitled to a PARF rebate and a COE rebate depending on your vehicle's age and remaining COE period.

ARF stands for Additional Registration Fee. It is a tax imposed on all vehicles registered in Singapore, calculated as a percentage of the vehicle's Open Market Value (OMV).

The PARF rebate is a partial refund of the Additional Registration Fee (ARF) you receive when you deregister a PARF-eligible vehicle within 10 years of its registration.

The Monetary Authority of Singapore (MAS) sets the minimum downpayment based on the car's Open Market Value (OMV). If the OMV is S$20,000 or below, you need a minimum 30% downpayment (maximum 70% loan-to-value). If the OMV exceeds S$20,000, you need a minimum 40% downpayment (maximum 60% LTV). The maximum loan tenure is 7 years. Additionally, your total monthly debt repayments — including mortgage, car loan, and credit cards — must not exceed 55% of your gross monthly income under the Total Debt Servicing Ratio (TDSR) framework.

Depreciation is the loss in value of your car over time and represents the largest real cost of car ownership. It is calculated as: (purchase price − scrap or resale value) ÷ years of ownership. Depreciation is steepest in the first three years, then stabilises from years four to eight. When you deregister your car, PARF and COE rebates reduce your effective depreciation. For example, a S$165,000 car held for 10 years with S$20,000 in rebates has an annual depreciation of about S$14,500.

Beyond the purchase price, car ownership in Singapore involves ongoing costs: road tax (S$700–S$2,000/year), insurance (S$1,000–S$3,000/year), fuel or EV charging (S$150–S$300/month), parking (S$100–S$300/month), and maintenance. For a mid-range car over 10 years, the all-in cost typically works out to S$1,700–S$2,100 per month or S$200,000–S$250,000 in total. Depreciation — the difference between what you pay and what you get back — is usually the single largest component.

Electric car buyers in Singapore can benefit from two main incentives. The Vehicular Emissions Scheme (VES) offers rebates of up to S$22,500 in 2026 (S$20,000 in 2027) for Band A electric vehicles. The EV Early Adoption Incentive (EEAI) provides an additional 45% rebate on the ARF, capped at S$7,500 in 2026. Combined, buyers can save up to S$30,000 off the ARF in 2026. The S$0 ARF floor for electric cars is maintained until end of 2027. Note that from 2026, only fully electric vehicles receive rebates — hybrids no longer qualify.

Electric vehicle registrations have surged, accounting for over 60% of new car registrations as of 2025. This is driven by generous government incentives (VES and EEAI rebates worth up to S$30,000), rapidly expanding public charging infrastructure (targeting 60,000 points by 2030), falling global battery costs, and attractive road tax rates for EVs. BYD leads new registrations, followed by Tesla and Toyota. The government's Singapore Green Plan 2030 targets all new car and taxi registrations to be cleaner-energy models by 2030.

The Land Transport Authority (LTA) determines the COE quota based on the number of vehicles being taken off the road, projected vehicle growth rate, and adjustments for unmet demand.

Category E is the open category. COEs from this category can be used to register any vehicle type except motorcycles. Cat E COE prices tend to be higher as they provide more flexibility.