Please wait
Everything You Need to Know About COE in Singapore: 10 Interesting Facts

Everything You Need to Know About COE in Singapore: 10 Interesting Facts

Everything You Need to Know About COE in Singapore: 10 Interesting Facts

No Time to Read? Here’s a Snappy Summary of This Article

  • Limited Car Permits: Singapore’s COE system restricts the number of vehicles on roads, combating congestion and pollution.
  • Dynamic Auction System: COEs are auctioned, creating a competitive market where prices fluctuate based on demand and supply dynamics.
  • Pricey Affair: COE prices can surpass the actual car cost, making Singapore’s car ownership among the most expensive globally.
  • Categorization Matters: COEs are categorized into five groups, including cars, motorcycles, and goods vehicles, influencing their respective prices.
  • Bidding Strategies: Smart bidders strategize based on market trends, choosing optimal times to bid for better chances at securing a COE.
  • Renewable or Not: COEs have a validity period of 10 years, after which vehicle owners must decide to renew or deregister.


When it comes to owning a car in Singapore, the Certificate of Entitlement (COE) is a term that’s impossible to ignore. This unique system, which controls the number of vehicles on the road, has been a subject of fascination, debate, and sometimes frustration among Singaporeans. In this article, we delve into 10 interesting facts about COE in Singapore that you may not know. Buckle up and get ready for an enlightening ride!

1. The Origin of COE

The Certificate of Entitlement was introduced in Singapore in May 1990 as a way to manage the growing number of vehicles on the island. The system was designed to curb congestion and reduce environmental impact. It’s a quota-based mechanism that requires individuals to bid for the right to own and use a vehicle for a period of 10 years.

2. Categories of COE

COE is divided into five different categories: A, B, C, D, and E. Category A is for cars up to 1600cc, Category B for cars above 1600cc, Category C for goods vehicles and buses, Category D for motorcycles, and Category E is the “open” category, applicable for any type of vehicle. Each category has its own quota and bidding process.

Follow us on InstagramFacebookTelegram now!

3. COE Prices Fluctuate

The price of COE is determined through a bidding process and can vary significantly. Factors such as economic conditions, demand, and government policies can influence the price. There have been instances where COE prices reached exorbitant levels, making car ownership a luxury for many Singaporeans.

4. COE Renewal

After the initial 10-year period, vehicle owners have the option to renew their COE for another 5 or 10 years by paying the Prevailing Quota Premium. This allows for extended vehicle ownership without going through the bidding process again.

5. Impact on Used Car Market

The COE system has a significant impact on the used car market in Singapore. Cars with a shorter COE lifespan tend to depreciate faster, affecting their resale value. On the flip side, cars with a newly renewed COE can command higher prices in the market.

6. Off-Peak Cars

Singapore offers an Off-Peak Car (OPC) scheme, where car owners can enjoy a significant rebate on their COE in exchange for restricted usage during peak hours. This scheme aims to reduce congestion during busy times and offers a more affordable option for car ownership.


Read Also:

Top 6 Best Electric Car Servicing in Singapore


7. COE for Motorcycles

While much of the focus is on cars, COE for motorcycles has also seen a surge in prices over the years. This has led to concerns about the affordability of motorcycles, often considered a more economical mode of transport compared to cars.

8. Environmental Impact

The COE system has an environmental angle too. By controlling the number of vehicles on the road, it indirectly helps in reducing carbon emissions and air pollution. However, critics argue that it doesn’t do enough to promote the use of electric or hybrid vehicles.

9. Financing Options

Various banks and financial institutions offer loans specifically designed for COE. These loans can help ease the financial burden of acquiring a COE, making it somewhat more accessible for the average Singaporean.

10. Future of COE

As Singapore moves towards a car-lite society with better public transport and shared mobility options, the future of COE remains uncertain. There are discussions about revising the system to better align with environmental goals and societal needs.


The Certificate of Entitlement is more than just a piece of paper; it’s a complex system that has shaped Singapore’s automotive landscape for over three decades. Whether you see it as a necessary evil or a brilliant solution to urban challenges, there’s no denying its impact on every aspect of car ownership in Singapore. We hope this article has provided you with valuable insights into this uniquely Singaporean phenomenon. Drive safe!


Frequently Asked Questions (FAQ)

Q: What Determines COE Prices in Singapore?

A: COE prices are primarily influenced by demand, supply, and bidding dynamics in Singapore’s competitive auction system.

Q: Can I Transfer my COE to Another Person?

A: Yes, COEs are transferable within specified conditions, allowing individuals to buy or sell their vehicle ownership rights.

Q: How Often Are COEs Auctioned in Singapore?

A: COE auctions occur twice a month, creating regular opportunities for individuals to bid on available certificates.

Q4 What Happens If I Don’t Renew My COE After 10 Years?

A: After the 10-year validity, vehicle owners can choose to renew the COE for another 10 years or deregister the vehicle.

Q: Are COE Prices the Same for All Vehicle Categories?

A: No, COE prices vary based on vehicle categories, such as cars, motorcycles, goods vehicles, reflecting different market demands.

Q: Can Foreigners Buy Cars in Singapore and Bid for COEs?

A: Yes, foreigners residing in Singapore can purchase cars and bid for COEs, subject to certain eligibility criteria.

2021 Tropika Newsletter Header - Got an article to suggest

Have an Article to Suggest?

Tropika Club is always looking for new and exciting content to feature in their magazine and they value the input of our readers. If you have any noteworthy content or articles that you believe would be a great addition to Tropika Club’s magazine, we are open to suggestions and encourage you to reach out to us via email at [email protected]. By doing so, Tropika Club values your expertise and knowledge in the matter and appreciates your willingness to help. We will review your recommendations and update our list accordingly

Meanwhile, Check Out Tropika Club’s Ecosystem of Websites

Tropika Club Magazine and Tropika Club Deals

Tropika Club Magazine – Tropika Club Magazine is a Singapore-based publication that features articles on a wide range of topics with a focus on local businesses and content for the region. The magazine emphasizes supporting local businesses through its #SupportLocal initiative, which includes coverage of everything from neighborhood hawker stalls to aesthetic clinics in town. In addition to highlighting local businesses, Tropika Club Magazine also covers a variety of local content, including beauty, lifestyle, places, eats, and what’s on in Singapore and the Asia Pacific region.

Tropika Club Deals – Tropika Club Deals is a leading online deals and voucher shopping site in Singapore, offering amazing discounts on beauty, wellness, and fitness products and services. It’s the perfect platform for customers who want to discover the best deals without having to commit to a specific appointment date and time. These deals are available at major beauty stores, facial salons, hair salons, and other brands in Singapore, with no minimum spend required. Choose from guaranteed discounted deals in the categories of hairstyling, hair removal, facial & aesthetics, body slimming, brows & lashes, nails & makeup, massage & spa or fitness & wellness. Tropika Club Deals is also ideal for customers who want to buy vouchers as gifts or to use for the future. So whether you’re looking to save money on your next haircut or want to treat yourself to a relaxing massage, Tropika Club Deals has got you covered with the best voucher and coupon deals in Singapore!

Rainbow is a 36-year-old lady who enjoys mini golf, donating blood and disputing fake news on Facebook. She is giving and generous and enjoy covering about the latest things in Singapore.

This website is protected by copyright.