Every car owner should know that having a valid COE is mandatory. It represents a right to vehicle ownership and is one out of the many prerequisites to owning and operating a vehicle on the limited road space in Singapore. Upon successful bidding, your COE is valid for a period of 10 years. Subsequently, you have the alternative for renewal of either 5 years or 10 years, depending on your vehicle category and its statutory lifespan. Once your vehicle reaches the end of its statutory lifespan, unfortunately, COE renewal will no longer be an option.

COEs in Singapore are divided into 5 different categories, grouped according to your vehicle class. It goes without saying that your vehicle type is required to match the following categories:

• Category A: Cars with engine capacity up to 1,600cc & power output 97kW
• Category B: Cars with engine capacity above 1,600cc or power output 97kW
• Category C: Goods carrying vehicle and bus
• Category D: Motorcycle
• Category E: An open category applicable for all of the above mentioned, except motorcycles.

So what is the purpose behind the implementation of COEs?

Well, that is because the lion city is known to have one of the highest road densities across the globe, reportedly 480.6km per 100 sq.km in 2011. With the land constraint, there was a need to manage the rapid growth of vehicles on the road. Hence, COE was introduced by the government in the 1990s, as an ownership measure or solution to regulate the growth of vehicle population, ease congested roads, and manage high volumes of traffic.

COEs for the individual categories are bid separately in an open bidding system. However, not every bid will go through successfully.

You will have to first submit the bid amount that you are willing to pay, also known as the reserve price, in the system. The bidding system will then automatically raise the current price of COE by $1. If the current price of COE exceeds your bid, then you are out of the running. Meaning – you will not stand a chance in getting a COE in this bidding round. The current price of COE will then continue rising and stop only when the number of bidders is equivalent to the number of COEs available. The bidding will then end here, with the final quota premium (QP) that successful bidders of the same category are required to pay.

A Full Service Association

As your partner in motoring, we provide multi-faceted services in Singapore. These include road tax renewal, roadside assistance plans, car inspection, scrap car services without you having to engage a car dealer yourself, and more. Thinking of renewing your COE for your current vehicle or getting a pre-loved car? You can count on our car evaluation service to assess its condition.

With the plenty of privileges that await, sign up for our AA membership now – we promise that it will be worth it!