What is COE?

What is the Certificate of Entitlement?

The Certificate of Entitlement (COE) is a licence granting the right to register, own, and use a vehicle in Singapore for a period of 10 years. Introduced in 1990 by the Land Transport Authority (LTA), it is part of Singapore's vehicle quota system designed to manage road congestion on the island.

Unlike most countries where you simply buy a car and register it, in Singapore you must first successfully bid for a COE in a competitive bidding exercise. The price of a COE can fluctuate significantly — from under S$10,000 during economic downturns to over S$150,000 during peak demand.

As of March 2026, a COE for a standard car (Category A) costs approximately S$111,890, making it one of the most expensive items in a car purchase — often exceeding the cost of the vehicle itself.

The 5 COE Categories

COEs are divided into five categories, each with a separate quota and bidding exercise:

How COE Bidding Works

COE bidding exercises are conducted twice a month, typically on the first and third Wednesday. Each exercise runs for 3 days (Monday to Wednesday), with results announced at 4pm on Wednesday.

1. Check the quota — LTA announces the number of COEs available for each category quarterly.
2. Place your bid — Submit a sealed bid through an authorized dealer or directly via OneMotoring. You specify your maximum price.
3. Bidding closes — All bids are collected over 3 days. During the exercise, a "Current COE Price" (CCP) is displayed.
4. Results announced — The Quota Premium (QP) is the lowest successful bid. Everyone who bid at or above this price gets a COE — but all pay the same QP.

Understanding QP, PQP & TCOE

Quota Premium (QP) — The final price of a COE in a particular bidding exercise. This is what successful bidders pay.

Prevailing Quota Premium (PQP) — The 3-month moving average of QP. This is the price you pay if you want to renew your COE without bidding. It's recalculated after each bidding round.

Total Cost of Entitlement (TCOE) — A more comprehensive measure that includes the COE premium plus the Additional Registration Fee (ARF) that you forfeit after 10 years.

COE Renewal

When your 10-year COE expires, you have three options:

• Renew for 5 or 10 years at the prevailing PQP (no need to bid)
• Deregister (scrap) and receive PARF + COE rebates
• Export the vehicle to another country

Deregistration & Scrappage

When you deregister a vehicle within the first 10 years, you receive two rebates:

• PARF Rebate — A percentage of your Additional Registration Fee (ARF), decreasing from 75% in Year 1 to 0% after Year 10. Capped at $30,000 since 2023.
• COE Rebate — Pro-rated refund of your COE based on remaining months (COE paid x remaining months / 120).

History of COE Prices

COE prices have followed dramatic cycles since the system was introduced in 1990:

• 1990s — Prices surged to S$110,500 in 1994 before crashing during the Asian Financial Crisis to S$1 in 1998.
• 2000s — Gradual recovery, peaking at S$26,000 before the 2008 Global Financial Crisis.
• 2013 — All-time high of S$97,889 for Cat A.
• 2020 — COVID-19 briefly depressed prices to ~S$30,000.
• 2023-2026 — New records above S$110,000 as vehicle deregistrations decline and demand surges.

COE prices tend to follow a ~10-year cycle driven by vehicle deregistrations: as cars registered 10 years ago expire, they free up COE quota, eventually bringing prices down.

EVs & Electric Vehicles

Electric vehicles in Singapore still require a COE. However, the government has introduced incentives:

• VES (Vehicular Emissions Scheme) — EVs qualify for rebates of up to S$25,000.
• Reduced road tax — EVs pay lower road tax based on power output rather than engine capacity.
• ARF considerations — The power-to-weight based categorisation means some EVs fall into Cat A despite their performance.

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