Certificate of Entitlement (COE)
A COE represents the right to vehicle ownership and is one of the many prerequisites to owning and operating a vehicle in Singapore. Upon successful bidding, a COE is valid for a period of 10 years. Subsequently, owners have the option to renew it for another 5 or 10 years, depending on their vehicle category and statutory lifespan.
The 5 COE Categories
Category A
Cars with engine capacity up to 1,600cc and power output of 97kW.
Category B
Cars with engine capacity above 1,600cc and power output of 97kW.
Category C
Goods vehicles and buses.
Category D
Motorcycles.
Category E
Open category for any vehicle type. Except motorcycles.
3 Steps How Does COE Bidding Work?
COEs for each individual category are bid separately in an open bidding system. However, not every bid will go through successfully.
Submit Bid Amount
You will submit the bid amount that you're willing to pay in the system. This is also known as the reserve price.
Submitting System
The bidding system will raise the current price of COE by $1. If the current price of COE exceeds your bid, you are out of the running.
COE Prices Rise
The current price of COE will continue to rise. It stops when the number of bidders are equivalent to the number of COEs available.
COE Terms
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The VQS is a system that limits the number of vehicles that can be used in Singapore at any given time. This is achieved by restricting the available supply of COEs. Since each COE can only be held for a maximum of ten years, you will haveto either pay to upgrade your COE in order to continue using your car or deregister and scrap it.
The ARF is a tax that is levied when you register your car. It is measured as a percentage of your vehicle’s Open Market Value (OMV). The ARF must be paid in addition to all other necessary fees and taxes.
A PARF car is one that is less than ten years old. PARF cars qualify for a PARF refund, which is the scrap value you will get if you deregister your vehicle. Your PARF is determined by the amount of time left between the expiration of your COE and the ARF. As a general rule, the newer your car is when you deregister it, the greater the PAR Frebate you will get.
The QP is the cost of the COE that all qualified bidders in that group must pay. It is calculated by adding $1 to the category’s highest unsuccessful bid. QPs can differ depending on the demand for each COE group.
PQP is the three-month moving average of COE prices (QPs). As a result, it can vary month to month based on the previous month’s rates. Those renewing their COE would simply pay the PQP rather than going through the whole COE bidding processagain.
