Cat A COE premium hits all-time high of $139,001; Cat B price also rises - The Straits Times
The current price of a Category A COE eclipses the previous record set on Sept 9, when it cost $133,009.
SINGAPORE – The certificate of entitlement (COE) premium for Category A vehicles hit an all-time high of $139,001 on Nov 4, eclipsing the previous record of $133,009 set on Sept 9.
Category A COEs – meant for smaller, less powerful cars and electric vehicles (EVs) – rose by 5.3% from the previous price of $132,004.
This also marks the first time that the COE price for Category A has outstripped that of Category E.
Category B COE premiums – used to register larger, more powerful cars and EVs – also increased, but more modestly, from $131,901 to $132,334 – a 0.3% rise.
The only other COE category to post an increase in prices was for Category E or the Open category.
It increased by 0.2%, from $135,790 to $135,998.
Open category certificates are transferable and can be used to register any vehicle type except motorcycles. Motor traders often secure them for the flexibility to register cars without waiting for the next tender exercise.
The price of a commercial vehicle certificate dipped by 0.2% from $92,200 to $92,000.
Motorcycle COEs closed at $10,689 – 0.8% lower than the $10,778 at the previous exercise.
After the close of the tender exercise, a spokesperson for the Land Transport Authority said COE prices remain elevated, likely due to strong demand for mass-market EVs that qualify under Category A, as well as the Car Expo held on Oct 24 and 25.
“We urge buyers and dealers to be prudent in bidding for COEs,” the spokesperson added.
The latest COE results come after LTA closed its public consultation exercise on COE categorisation on Nov 2.
The exercise was to gather feedback on a proposed review of the COE system, which is expected to be completed by the first half of 2027.
Besides proposing a merger of the two car categories, other suggested changes include a fee and rebate system, in which buyers of higher-value cars will pay higher premiums compared with those who purchase mass-market options.
Chong Kah Wei, managing director of BMW Eurokars, said there was a sense among car dealers that COE premiums for Category A would increase.
However, the record high prices for Category A came as a surprise to him.
The Car Expo, he added, was the likely driver behind the spike in prices, with 2,018 bids placed for 1,189 Category A COEs that were available.
With the COE review also looming, Chong said it is likely that people were rushing into the market ahead of any changes that could come in the future.
“I don’t think prices are going to come down significantly, but we might see people shifting from Category A to Category B in the next exercise, considering the difference in prices,” he added.
Raymond Ng, managing director of Eurokars EV, which distributes the Chinese brands MG and IM Motors, said buyers were also swayed by the upcoming rollback of incentives for EV adoption, starting in January 2027.
EV buyers now qualify for a combined rebate of up to $30,000, but it will go down to $20,000 from 2027.
Ng said: “After today, there’s going to be only three COE bidding exercises left. You’ve got dealers dangling these EV rebates, as well as LTA dangling COE recategorisation.
“All this is just driving people to buy now because there’s more certainty, and they also know they can save $10,000 if they opt for an EV.”
