COE prices fall across the board; Cat A premium dips to $131,890 after hitting record high on Sept 9

SINGAPORE – After hitting an all-time high of $133,009 in the last tender exercise in early September, the Category A certificate of entitlement (COE) premium fell by 0.8 per cent on Sept 23.

The Category A premium – meant for smaller, less powerful cars and electric vehicles (EVs) – fell to $131,890 in the latest tender exercise, in which COE prices eased across the board in every vehicle category.

The COE premium for Category B – for larger, more powerful cars and EVs – dipped 1.5 per cent, from $135,001 to $133,000.

The Category D COE premium for motorcycles fell from $12,556 to $12,201 – a 2.8 per cent drop.

The premium for Open category COEs – which can be used for any vehicle type except motorcycles, but ends up almost exclusively for bigger, more powerful cars – fell 0.6 per cent, from $137,890 to $137,000.

Motor traders often secure this COE category for the flexibility to register cars without waiting for the next tender exercise.

The COE premium for commercial vehicles (Category C) also dipped, falling from $93,101 to $92,144.

A COE is needed to own and use a vehicle in Singapore. The authorities are reviewing the COE system to improve the categorisation of cars.

The review will take in views from motorists, dealers, car manufacturers and academics, and is expected to finish by the end of 2026.

The Land Transport Authority (LTA), in a statement on Sept 23 after the results of the latest COE bidding exercise came out, said premiums are down, but they still remain high, with Category A and Category B COE prices still hovering in the same region.

It said: “LTA’s review of COE categorisation for cars aims to differentiate between mass-market and higher-end cars more effectively.”

Motor dealers The Straits Times spoke to said it was unlikely for COE prices to continue on a downward trend for the remaining exercises in 2026, citing how changes to schemes encouraging the adoption of EVs on Jan 1, 2027, could cause a rush to register new vehicles.

For one thing, higher surcharges will be in place for cars with high exhaust emissions. Those that fall into the most polluting band under the Vehicular Emissions Scheme will attract a surcharge of $45,000, up from $35,000 currently.

The EV Early Adoption Incentive will also be discontinued on Jan 1. The scheme earlier provided a rebate of up to $15,000, before the maximum amount was halved to $7,500 on Jan 1, 2026.

Volvo managing director Corinne Chua, from Wearnes Automotive, said the dip in COE premiums was understandable, citing how the previous exercise came after a three-week break, which meant there was an additional week of sales.

Whether buying a car with an internal combustion engine, a petrol-hybrid car or an EV, prices will increase next year, said Chong Kah Wei, managing director of BMW and Mini at Eurokars Auto.

“The only thing that is not definite is how COEs will be re-categorised, and I don’t think anyone would want to take a gamble on it,” he said.

“So, chances are those in the market for new cars would likely try to get their hands on one soon, before the changes to the different schemes take effect.”