{"id":13083,"date":"2024-12-16T19:15:52","date_gmt":"2024-12-16T11:15:52","guid":{"rendered":"https:\/\/blog.carro.sg\/?p=13083"},"modified":"2025-11-18T16:35:07","modified_gmt":"2025-11-18T08:35:07","slug":"coe-for-dummies-all-inclusive-guide","status":"publish","type":"post","link":"https:\/\/carro.co\/sg\/blog\/coe-for-dummies-all-inclusive-guide\/","title":{"rendered":"COE For Dummies: An All Inclusive Guide"},"content":{"rendered":"\"\"\r\n\r\nThis is COE for dummies, your all inclusive guide about Singapore\u2019s very own COE system. Now, unlike the title of this article, I don\u2019t think you\u2019re an actual dummy. This guide is just an easy-to-understand, quick look into the COE system, so that anyone, no matter how unfamiliar with the concept, is able to understand.\u00a0<\/span>\r\n

So, what is COE?\u00a0<\/b><\/h2>\r\n\"\"\r\n\r\nCOE stands for Certificate of Entitlement. It gives you the right to register, own, and use a vehicle in Singapore for ten years. After which you have to choose to either renew your COE for another 5 to 10 years, or scrap your vehicle and buy a new one.\u00a0<\/span>\r\n\r\nSingapore implemented COE as a way to control the number of vehicles on the road.\u00a0\u00a0<\/span>\r\n\r\nTwice a month, there\u2019s an open bidding session where you, or your dealer, can bid for a limited amount of COE slots. This means that when demand is high, the price of the COE can be equal, or even higher, than the cost of the car.\u00a0<\/span>\r\n

COE Categories\u00a0<\/b><\/h2>\r\n\"\"\r\n\r\nThe COE system has a total of five categories. Depending on the type of vehicle you have, COE may differ. It's important you know the difference so you can get the one that matches the vehicle you\u2019re registering.\u00a0<\/span>\r\n\r\nCategory A: Cars with engine capacity up to 1600 CC and below\u00a0<\/span>\r\n\r\nCategory B: Cars with engine capacity exceeding 1600 CC and above<\/span>\r\n\r\nCategory C: Goods vehicles and buses\u00a0<\/span>\r\n\r\nCategory D: Motorcycles\u00a0<\/span>\r\n\r\nCategory E: \u201cOpen\u201d category COE, can be used for all of the above<\/span>\r\n\r\nIf you\u2019re unsure of what category your vehicle might fall under, you can very easily ask your dealer.\u00a0<\/span>\r\n

COE Open Bidding Process\u00a0<\/b><\/h2>\r\n\"\"\r\n\r\nThe next thing to know about COE would be how to acquire one. As mentioned before, these bidding exercises happen twice a month. People who want to buy COE, the bidders, will submit their reserve price, which is the maximum amount they\u2019re willing to pay for their COE.\u00a0<\/span>\r\n\r\nThere\u2019s a limited amount of COEs available, so depending on the prices submitted by buyers, COE price can be high or low. The system takes the current COE price and raises it by $1, and if your bid was below the COE price, you\u2019re eliminated. The system will continue to run until the number of bidders matches the number of available COEs.\u00a0<\/span>\r\n\r\nDuring the bidding process, you cannot withdraw your bid. You may revise it if you\u2019d like to increase your bid, but not if you want to decrease it.\u00a0<\/span>\r\n

What determines the price of COE?\u00a0<\/b><\/h2>\r\n\"\"\r\n\r\nSimply, it\u2019s demand and supply. Higher demand and lower supply of COE will raise its prices.\u00a0<\/span>\r\n\r\nIn regards to demand, because the bid continues to increase until the number of bidders equals the number of available slots, if there are more buyers, the price ends up being higher.<\/span>\r\n\r\nSupply works a little bit differently. This is predetermined before the bidding starts. The supply of COEs is regulated by the Vehicle Quota System (VQS), which is calculated every three months and is essentially based on:\u00a0<\/span>\r\n