In Singapore, every vehicle must be registered with a Certificate of Entitlement (COE). Introduced in 1990 under the Vehicle Quota System (VQS), the COE framework helps regulate vehicle growth in land-scarce Singapore. Once you secure a COE and register your vehicle, you can use it for 10 years. At the end of the 10-year period, you must either deregister the vehicle or renew the COE by paying the Prevailing Quota Premium (PQP).
COE bidding is conducted twice a month. Bidding usually opens at 12 pm on the first and third Monday of the month and lasts for 3 working days. If there is no public holiday in between, it usually closes at 4 pm on Wednesday of the same week.
Like most markets, COE prices are driven by supply and demand.
Types Of COEs
In Singapore, there are five COE categories. To register a vehicle, you must secure the COE category that matches your vehicle type.
Category A: Non-fully electric cars with engine capacity of up to 1,600cc and maximum power output of up to 97kW (130bhp); and fully electric cars with maximum power output of up to 110kW (147bhp)
Category B: Non-fully electric cars with engine capacity above 1,600cc or maximum power output above 97kW (130bhp); and fully electric cars with maximum power output above 110kW (147bhp)
Category C: Goods vehicles and buses
Category D: Motorcycles
Category E: Open category — all vehicles except motorcycles.
Supply of COEs
LTA announces COE quotas every quarter. For the current quota period of February 2026 to April 2026, the total COE quota is 18,824.
According to LTA, this quota is made up of:
- 25% of the replacement COEs from vehicles deregistered from January 2025 to December 2025
- Provision for 0.25% per annum growth for Category C, based on the Category C vehicle population as at 31 December 2025
- Adjustments for changes in taxi population, expired Temporary COEs, the Early Turnover Scheme for commercial vehicles, redistribution from guaranteed deregistrations for Categories A, B and D, and the injection of additional COEs.
Overall, the quota for February 2026 to April 2026 is 1% lower than the previous quarter.
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Demand For COEs
Demand for COEs depends on how many people and businesses are looking to buy vehicles. In Singapore, many buyers purchase through dealers, who collect orders and bid for COEs on the customers’ behalf. When COE prices rise, vehicle prices quoted by dealers usually follow suit, which can dampen demand. When COE prices ease, dealers may be able to lower prices, thereby supporting demand.
When buying a new car, buyers are often quoted either a Guaranteed COE package or a Non-Guaranteed COE package. A Guaranteed COE package generally means the dealer undertakes to secure the COE within a stated period, even if COE prices rise in the meantime. Some packages may also include a top-up structure or a rebate if COE prices fall below a specified level. A Non-Guaranteed COE package, on the other hand, means there is no certainty the COE will be secured if premiums rise sharply. In that case, the dealer may refund the deposit instead.
How Open Bidding Works
COE bidding is an open bidding system. Bidders can see the prevailing market price during the exercise and enter the maximum amount they are prepared to pay, known as the reserve price.
Your bid remains in the running as long as your reserve price is equal to or above the Current COE Price. If the current COE Price rises above your reserve price, your bid will drop out unless you revise it upward. If your bid succeeds, you pay the final quota premium for that exercise, not necessarily your reserve price.
The current COE price is the highest unsuccessful bid price plus $1.
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Based on the 1st bidding exercise of March 2026, COE premiums were:
CAT A – $108,220
CAT B – $114,002
CAT C – $76,000
CAT D – $8,602
CAT E – $114,890
Prevailing Quota Premiums (PQP) For COE Renewal After 10 Years
If your vehicle reaches the end of its 10-year COE, you can renew it by paying the Prevailing Quota Premium (PQP) instead of bidding for a new COE. The PQP is the moving average of quota premiums from the last 3 months in which bidding exercises were conducted, and it changes monthly. If you renew for 5 years, you pay 50% of the PQP.
For Categories A, B, and D, a 5-year renewal can be done only once. For Category C, an additional 5-year renewal is allowed, but only until the vehicle reaches the end of its statutory lifespan.
Deregistration Of Cars Before 10 Years
If you deregister your vehicle before the COE expires, you may receive a COE rebate. This is based on the amount paid for the original quota premium (PQP) for a renewed COE or taxi and is prorated according to the unused COE period. In other words, the earlier you deregister, the larger the remaining COE rebate is likely to be.
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