COE

The Basics

As we all know, Singapore is a small country, at least in terms of its size. Hence, it is imperative to control the number of cars on the road, so ensure that traffic moves smoothly. A number of measures have been taken by the authority (Land Transport Authority, LTA) to help keep traffic flowing, and the Certificate of Entitlement system or COE is one of them.

Via the compulsory system, buyers, like you and me, or auto dealers have to get the certificate, before buying a particular vehicle. The system was implemented on May 1st 1990, and it started off with eight categories and after many revisions from time to time, the system has five categories now.

COE Categories

Five categories for COE include:

    Category A: for cars with 1,600cc (engine capacity) and below, and taxis.
    Category B: for cars with 1,601cc and above.
    Category C: for goods vehicles and buses.
    Category D: for motorcycles.
    Category E: Open category – mostly used by auto dealers.

COE Availability

The authority will set aside a quota of COEs in April, followed by a possible adjustment in October, if necessary. The quota will last for about a year, before a new quota is revealed. The LTA will usually reduce the quota, if the number of vehicles are increasing.

Individual buyers and auto dealers can purchase COEs via bidding / auction exercises, that take place every fortnight (twice a month). It usually starts on Mondays and ends on Wednesdays, by 4.00 pm (lasts for three days). During each auction, the final successful bid will determine the price that everyone pays. For example, the 50th (in a category that has 50 bidders) successful bid from the top becomes the COE price.

How to get your COE?

From the dealer (open Category)

There are a number of ways to get a COE for your new vehicle, but most buyers would just purchase the car from the dealer, which has already included a COE in the package. This is the fastest way to purchase a car. Auto dealers will use an Open Category COE, which can last up to three months. Meaning, when its closer to the expiry date, auto dealers would usually sweeten the deal for buyers. However, when you scrap your car in five years, you will most probably get a lower rebate value, as the rebate is based on the COE for the car’s rightful category.

Example, if you purchase a car, with an Open Category COE that is worth S$10,000, and at the same time, the rightful category, say Category A is only worth S$8,000, then you will get half the amount of the value of Category A. Meaning, instead of getting S$5,000, you will end up getting S$4,000.

From the dealer (rightful COE for your car)

You can also purchase a car from the dealer, inclusive of the rightful COE for the car you desire, instead of using an Open Category COE. Via this method, you would have to wait for at least six weeks, as auto dealers would usually go through two COE bidding rounds to get the right COE. When you purchase a car with the right COE, it pays when you decide to scrap the car in five years, as the rebate that you will get, will be based on the COE you paid for. This is also another popular choice, especially for higher-end cars.

From the dealer (wait for the cheapest deal)

You can also get the auto dealer to go through more than two bidding sessions, usually four or six times. Time wise, this would take about two to four months. People usually do this so that they get the COE price that they are willing to pay for or afford. However, it only works if you are willing to wait, and if COE prices go down.

Get it yourself

You can also perform the bidding and get the COE on your own, although you will be part of a small group (about 1%), that bid for COEs on their own. There are a few ways of bidding on your own, including via ATMs (DBS), Internet (Citibank and UOB) and via phone banking (OCBC). This method is recommended for savvy COE bidders. This method may work well for unpopular auto brands. Most auto brands will be have different price tags (for the cars) for buyers with their own COE and buyers who get COEs via the methods mentioned above. Usually, the deal isn’t that attractive.

Frequently Asked Questions

We hope that after spending some time in this section, you are now familiar with the COE system. To read Frequently Asked Questions (FAQ) about the COE system, please click here.

Up-to-date COE results

For up-to-date COE results, please click here to visit our COE results page. Happy motoring!