COE Guide in Singapore (2026): What It Means, Bidding Process & Price Trends

While owning a car is often associated with convenience and personal freedom, in Singapore, it’s viewed more as a luxury than a necessity. 

In fact, purchasing a car in Singapore is considered a significant financial undertaking and commitment, largely due to the complex and costly requirements involved. These include securing a Certificate of Entitlement (COE), obtaining a valid driver’s license, maintenance and regulatory fees, and other costs and various taxes.

Given that purchasing a car in Singapore is relatively more complicated and costlier than other countries, leading to a substantially high cost of car ownership here.

What is a Certificate of Entitlement (COE)?

Introduced in 1990, the Certificate of Entitlement (COE) is a permit that grants individuals the right to own and operate a vehicle in Singapore for 10 years at a time. While other countries employ their own systems for managing road usage and traffic regulations, the COE is unique to Singapore’s context. As a crucial allocation component of the Vehicle Quota System, it is designed to control the vehicle population on roads and regulate traffic congestion, given our limited land mass and road capacity. 

Overview of COE categories in Singapore

In Singapore, the Vehicle Quota System (VQS) controls vehicle allocation by capping the number of new registered vehicles. This works in tandem with the Electronic Road Pricing (ERP) as part of Singapore’s core traffic management strategy.

Overall, there are 5 different COE vehicle classifications:

_{*Only COEs in Categories C and E can be transferred if bidded as an individual. If COE bid was done under a company, business, or organisation, they are not valid for transfer. Meanwhile, COEs in Categories A, B, and D cannot be transferred under any circumstances.}

READ: COE Categories in Singapore Explained

The COE bidding system explained

COE open bidding is held twice monthly. Bidding commences at 12pm on the first and third Monday and runs for 3 working days, ending at 4pm on Wednesday (subject to public holidays). Prior to each exercise, the government announces the bidding period and number of COEs available per category.

How does the COE open bidding system work? 

When you bid, you set a reserve price—the maximum amount you’re willing to pay. Once submitted and accepted, your bid deposit and admin fee are immediately deducted and the bid cannot be withdrawn.

However, what you can do is revise your bid upwards. The system auto-increases your bid in $1 increments based on the Prevailing Quota Premium (PQP), until your reserve price is reached.

Two key prices determine outcomes:

• Current COE Price (CCP): Refers to the highest unsuccessful bid + $1. This is the cut-off for successful bids and limits the number of COEs awarded per category. Your bid remains active as long as your reserve price ≥ CCP. 

• Quota Premium: The final CCP once the bidding exercise closes and quota is met. All winning bidders pay this same premium, regardless of individual reserve price.

How to bid for a COE?

#1: Ensure sufficient funds in bank account

To submit a COE bid, you must hold an account with one of these participating banks: DBS, POSB, UOB, or Maybank. Bids can be sent through multiple channels: ATMS (for individuals) or online banking (for companies and motor traders).

#2: Follow correct bidder ID format

Successful COE bids require a valid ID to be registered under, so ensure that you submit the correct ID.

#3: Indicate reserve price

At this stage, select the appropriate COE category for your vehicle and enter your preferred reserve price. The minimum amount starts from $1. 

Once submitted, your amount can only be revised upwards (not downwards or withdrawn), where the system will automatically adjust by $1 increments in conjunction with the rising CCP.

#4: Pay bid deposit and administrative fee

Banks also usually charge a non-refundable administration fee for each COE bid submission. This amount varies slightly across banks, roughly between $2 to $10. The bid deposit for each COE category differs:

• Categories A, B, C, and E: $10,000

• Category D: $1,500

Most vehicles (e.g. passenger cars, commercial vehicles, open-category cars) will fall under Categories A, B, C, and E. As such, they typically require a standard COE bid deposit of $10,000.

Conversely, Category D (e.g. motorcycles) requires a lower minimum bid deposit. Notably, this amount has changed significantly over the years from $200 in 2022 to now $1,500 in 2025.

It is the responsibility of individuals and companies to have enough funds to cover both the bid deposit and non-refundable admin fee. A failed transaction due to insufficient funds in the bank account will result in a rejected bid, and you’ll have to wait for the next bidding exercise to try again. If you’re facing a shortage of funds to support your COE bid, perhaps a personal loan could be a consideration.

#5: Receive Acknowledgement Code

Upon successful submission or revision of bid, you’ll receive a 6-digit Acknowledgement Code used to authenticate the bidder as the sole person permitted to revise the bid’s reserve price. 

Note: The Acknowledgement Code is only required if revising bids at other channels besides the original bank it was made at.

How is the winning bid determined?

When COE bidding closes, the final Current COE Price (CCP) becomes the Quota Premium for that category.

Assuming a COE Category A quote of 3 and a total of 5 bidders, here’s how a winning bid will be determined:

Although there are 5 bidders, only the first 2 bids are successful. The 3rd and 4th bids (at $70) are rejected because accepting them would exceed the COE quota of 3. Since the remaining 1 quota is unallocated (unused quota), it will roll over to the next COE bidding exercise. All subsequent bids beyond that point are deemed unsuccessful and nullified. 

In this case, the CCP or Quota Premium will be set at $61 ($60 + $1)–which is $1 more than the highest unsuccessful bid. If the CCP exceeds your reserve price, your bid will be excluded and forfeited from the exercise. Whereas if successful, all winning bidders will pay the same Quota Premium, regardless of their personal reserve price.

If your bid is unsuccessful, the bid deposit will be fully refunded to your bank account, with the exception of the non-refundable admin fee. Should you still wish to obtain a COE, you’ll need to wait and participate in the next open bidding exercise.

During this 3-day window, the CCP updates dynamically—capable of rising by several hundred dollars within minutes. This is particularly prevalent in the final hours of the exercise as bidders (frantically) revise their bids upwards. Thus, it’s completely normal to refresh the portal and track SMS/email alerts to closely monitor these last-minute surges.

COE validity and expiry

Once you secure a COE, the awarded COE is valid for 6 months from the date of issue for vehicle registration. If registration is not completed within this timeframe, the COE will lapse and be voided, resulting in the forfeiture of both COE and bid deposit, which are strictly non-refundable. This applies to both individuals and businesses, so ensure that the intended vehicle is ready for registration before placing a bid. A registered COE is valid for 10 years.

What impacts COE prices?

COE prices fluctuate greatly depending on prevailing demand and supply conditions. However, in general, demand for car ownership in Singapore has consistently remained strong, resulting in sustained high or rising COE prices over the years.

Supply factors include:

• Government quota for number of available COEs per category

• Vehicle population control

• Deregistrations and new vehicle additions to roads

• Economic factors like disposable income, consumer confidence, car-buying decisions, etc.

Demand factors include:

• Number of bidders

• New vehicle orders

• Bidding strategies such as reserve prices, willingness to outbid competitors, etc.

• Market sentiment and perceptions about future COE price trends and overall car market

Comparing COE price trends from 2025 versus this year’s first bidding exercise (7 Jan 2026), prices have generally been falling—with exceptions like Nov 2025’s bidding exercise where Cat B prices rose sharply from $115,001 to $129,890. 

However, in the first bidding exercise of 2026 (7 Jan 2026), the trend was mixed, with some categories rising and others falling compared to the previous bidding exercise (Dec 2025):

Source: CNA and Motorist Singapore

6 Tips on Getting a COE

#1: Monitor recent Quota Premiums

Some bidders, such as car dealers and parallel importers, often participate in multiple rounds of bidding, bid higher amounts, or bid in bulk to secure COEs in advance for their customers. This can oversaturate competition and inflate prices during the COE bidding exercise, making it more challenging for individual bidders, especially first-timers, to successfully secure a COE. 

Thus, it’s recommended for first-timers to proactively monitor recent Quota Premium trends and seek guidance on making more informed and strategic bids.

#2: Set realistic reserve prices

As a rule of thumb, bidders should always set their reserve prices higher than the current COE trend or Prevailing Quota Premium (PQP). This is because each bidding exercise has a fixed quota of available COEs, and only the highest bids within the quota will succeed. 

Although the COE quota varies each round, bids with the highest reserve prices take precedence. Once the quota is filled, lower bids—regardless of submission time—will be disqualified. Thereafter, the final Current COE Price (CCP) is then determined as the highest unsuccessful bid + $1 to be calculated as the Quota Premium for that category.

#3: Time COE purchases during low-demand periods

Since COE prices are driven by supply and demand, timing your bid well is key. It’s been observed that COE bidding activity often eases during school holidays, festive periods, or times of economic uncertainty. These windows create less competitive conditions, making it easier to bid against fewer bidders and at lower reserve prices—resulting in higher chances at successfully securing a COE.

#4: Consider lower-demand COE categories or models

If you’re on a tighter budget, it might be worthwhile considering Category A cars or COE-exempt vehicles (e.g. taxis or certain commercial vehicles). While demand for electric or hybrid vehicles is hiking up Cat A and B prices, they may still qualify for some government rebates or incentives, helping to offset costs.

#5: Calculate long-term ownership costs

Lower COE prices are great and all, but cars with essential safety features like airbags and advanced driver-assistance systems (ADAS) go a long way towards cost-savings by reducing your risk of accidents.

#6: Fuel efficiency is important

While that shiny new car may look great, it’ll drain your savings if it drains fuel quickly. Meanwhile, a fuel-efficient car can give you significant savings over time, especially with rising petrol prices in Singapore.

Car models with strong fuel economy ratings can reduce fuel expenses, have lower emissions, and translate into a more sustainable choice in the long run.

Can I take a personal loan to pay for COE?

Yes, you can opt for a personal loan to finance the purchase of a new or used vehicle. Depending on the lender, personal loans in Singapore vary widely in interest rates, monthly repayment amounts, minimum loan size, loan tenure,  and more. You can use our personal loan calculator to estimate how much you need to pay back per month

instance, some traditional banks like Standard Chartered CashOne Loan offer highly competitive promotional rates starting from as low as 1.00% p.a., while other lenders such as Credible.sg may charge higher interest rates from 10.50% p.a. But in general, most loan tenures go up to 5 years, though some lenders may provide up to 7 years!

So if you need additional cash to cover your car’s upfront downpayment or recurring monthly instalments, it’s not a bad idea to leverage a personal loan for that—its flexibility gives you the freedom to use the funds at your discretion.

However, do note that under the Monetary Authority of Singapore (MAS) regulations, the maximum loan amount is determined by the car’s open market value (OMV): 

• For vehicles with an OMV less than $20,000: Up to 70% of OMV

• For vehicles with an OMV above $20,000: Up to 60% of OMV

Interestingly enough, there are also specific alternative loans called COE Renewal Loans. Such loans allow you to finance up to 100% of your COE’s PQP with flexible repayment tenures lasting between 7 to almost 10 years. Offered by both banks and licensed moneylenders, there is a decent variety of COE renewal loans available in Singapore.

Disclaimer: While banks can finance up to 60% or 70% of a car’s OMV, taking a personal loan beforehand can impact your borrowing power. Specifically, personal loans contribute towards your Total Debt Servicing Ratio (TDSR)—and if it’s too high due to other outstanding debt—banks may be less willing to grant the maximum hire purchase loans. Consequently, you might have to fork out a higher cash downpayment instead.

Hence, always carefully assess your existing debt obligations (e.g. mortgage loans, renovation loans, credit card debt) before taking on more loans.