Will COE prices affect car ownership costs?

The prices of Certificate of Entitlement (COE) in Singapore directly impact the overall cost of car ownership. The COE is a significant component of the total expenses associated with acquiring and owning a vehicle in Singapore. Thus, factors like depreciation, insurance premiums, monthly repayments for car loans, resale value affected by COE's expiration after ten years can have an indirect impact on the overall car ownership costs.

Is there any rebate available for COE?

Yes. In Singapore, once you deregister your vehicle before its Certificate of Entitlement (COE) expires, you may be eligible for a rebate which is calculated based on the Quota Premium (QP) or the Renewed Quota Premium (PQP) amount paid initially.

Cost of Owning a Car in Singapore

How Much Does A COE Cost?

In Singapore, the cost of a Certificate of Entitlement (COE) in Singapore can vary depending on several factors, including the vehicle category, bidding competition, and prevailing economic conditions.

As of today, January 29, 2024, here's a quick overview of the latest COE prices:

Category A	(Cars ≤ 1600cc & 130bhp, or 110kW)	$81,589
Category B	(Cars > 1,600cc or 130bhp, or 110kW)	$112,000
Category C	(Goods Vehicle & Bus)	$68,001
Category D	(Motorcycle)	$9,309
Category E	(Open-All Except Motorcycle)	$109,004

These are just the quota premiums, which represent the base price for each category. The actual cost can be higher depending on the Prevailing Qualifying Price (PQP), which is determined by the highest bid accepted in the previous bidding exercise.

For instance, the current PQP for Category A is $83,385 (as of 2 February 2024), meaning the minimum price you would pay for a Category A COE (including the quota premium) is $83,385.

For the most up-to-date COE prices and bidding results, you may visit LTA’s website or refer to Motorist.sg for more information.

Upfront cost of the vehicle

The COE represents a substantial portion of the total cost when purchasing a new vehicle. The higher the COE price, the more expensive the upfront cost of the vehicle.

Total cost of ownership

The total cost of ownership includes not only the purchase price but also other expenses such as road tax, insurance, maintenance, and fuel. The COE directly contributes to the overall financial commitment of owning a car.

Depreciation

COE has a validity period of ten years. As the COE approaches expiration, the depreciation of the vehicle becomes a factor in its market value. This, in turn, can affect the resale value and depreciation-related costs.

Insurance premiums

While COE prices themselves do not directly impact insurance premiums, the overall cost of the vehicle, influenced by the COE, can indirectly affect insurance considerations. Insurance premiums may be influenced by the vehicle's market value, which includes the COE component.

Vehicle financing

Many individuals finance their vehicle purchases through loans. The COE price contributes to the overall loan amount, impacting monthly repayments and the total interest paid over the loan tenure.

Fuel efficiency and operating costs

While not directly tied to COE prices, the type of vehicle chosen based on COE category (e.g., small car, luxury car) can influence fuel efficiency and operating costs. Smaller, more fuel-efficient cars may be more cost-effective in the long run.

Choice of vehicle type

The COE system has different categories for various vehicle types (e.g., cars, motorcycles). The type of vehicle chosen based on COE categories can influence overall ownership costs.

Resale value

The COE's expiration after ten years can impact the resale value of a vehicle. Buyers may consider the remaining COE period when assessing the value of a used car.

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Estimated Cost Of Owning A Car (Including COE) In Singapore

When it comes to calculating the total cost of owning a car, it'll often differ from car to car, depending on the model of the car, the age of the vehicle, and many other factors like NCD and so on.

Let’s just say you decide to purchase an entry-range Sedan like a Mazda 3 4DR 1.5 at M-hybrid Classic i2. It’ll already cost you about $113,077 (excluding depreciation and including COE) in the first year of owning this car. Besides the cost of the vehicle (known as the Average Open Market Value), you’ll have to factor in the following costs which are shown in the breakdown below.

*Note that the data above is a rough estimate as per LTA’s information and actual costs may vary depending on several factors, including car model, whether the car has a turbocharged engine or combustion engine, the fuel efficiency of the car, driving habits of the driver, car insurance coverage, location and many other factors. Estimated data above was last updated on 2 February 2024.

COE & PARF Rebates To Lower Overall Costs

COE rebate

Opting to deregister your vehicle before its Certificate of Entitlement (COE) expires may make you eligible for a rebate, which is calculated based on the Quota Premium (QP) or the Renewed Quota Premium (PQP) amount paid initially. This rebate will be proportional to the remaining time left on your vehicle's COE at the point of deregistration.

PARF rebate

The rebate applies exclusively to the deregistration of cars and taxis meeting the following criteria:

Cars, not exceeding 10 years in age.
Non-electric taxis, with an age limit of 8 years.
Electric taxis registered before September 15, 2022, and without opting for a 10-year statutory lifespan, must be less than 8 years old.
Electric taxis registered from September 15, 2022, or those registered before that date with an opt-in for a 10-year statutory lifespan, should not surpass 10 years in age.

The calculation of the rebate is based on the age of your car/taxi at the time of deregistration and the amount of Additional Registration Fee (ARF) you originally paid. To determine the age, reference the registration date, considering the earlier of the local or overseas registration. Cars and taxis with ARF payments may be subject to a PARF rebate cap of $60,000.

Frequently Asked Questions

How much does a COE cost in Singapore?: In Singapore, the cost of a Certificate of Entitlement (COE) in Singapore can vary depending on several factors, including the vehicle category, bidding competition, and prevailing economic conditions. As of today, January 29, 2024, the prices (for Category A - E) range from $81,589 to $109,004.
Will COE prices affect car ownership costs?: The prices of Certificate of Entitlement (COE) in Singapore directly impact the overall cost of car ownership. The COE is a significant component of the total expenses associated with acquiring and owning a vehicle in Singapore. Thus, factors like depreciation, insurance premiums, monthly repayments for car loans, resale value affected by COE's expiration after ten years can have an indirect impact on the overall car ownership costs.
Is there any rebate available for COE?: Yes. In Singapore, once you deregister your vehicle before its Certificate of Entitlement (COE) expires, you may be eligible for a rebate which is calculated based on the Quota Premium (QP) or the Renewed Quota Premium (PQP) amount paid initially.

Cost of Owning a Car in Singapore: Certificate of Entitlement (COE) & PARF Rebates