COE prices up across the board; Cat A premium rises to $124,790

SINGAPORE – Certificate of entitlement (COE) prices for cars in Category A and Category B rose at the latest tender on May 6.

The premium for Category A, which is for smaller, less powerful cars and electric vehicles (EVs), ended at $124,790, a 1.4 per cent increase from the $123,010 recorded during the previous tender on April 22.

At that point, it had exceeded the price of a Category B certificate.

The latest Category A price is the highest since the record of $128,105 was set in October 2025.

Category B certificates – which are for larger, more powerful cars and EVs – now cost more, at $126,236 on May 6.

This is a 4.3 per cent increase from the previous exercise, where it was $121,001.

COE prices also climbed in all other categories.

For the Open category (Category E), the premium rose by 2.2 per cent, from $125,002 to $127,700.

Certificates in this category can be used to register any vehicle type except motorcycles, but are typically used for bigger cars.

Because such certificates are transferable, motor traders secure them so they have the flexibility to register cars without having to wait for the next tender exercise.

The price of a motorcycle COE (Category D) went up by 1.7 per cent, from $9,290 to $9,452.

As for commercial vehicle (Category C) COEs, the premium increased to $87,479 – a 4.8 per cent change from $83,501.

In a statement shortly after the exercise, the Land Transport Authority (LTA) said that from past experience, the upcoming Car Expo is likely to lead to higher COE prices that negate discounts for purchases during this period. The car show takes place on May 9 and 10.

“We urge car buyers to bid prudently,” LTA added.

With the automotive event happening on the weekend, Mr Chong Kah Wei, managing director for Mazda at Trans Eurokars, said that people might have anticipated higher premiums at the next round of COE bidding, resulting in more people trying to secure them beforehand.

“There’s definitely demand for buying cars. If there wasn’t any demand, you wouldn’t see this kind of pricing.”

Mr Ernest Tan, deputy chief executive of dealership Vincar, added that the number of unsuccessful bids also indicates that prices will continue to climb.

However, transport expert Walter Theseira said purchasing a car now may not be the “best financial decision” unless it is an absolute necessity.

The supply of COEs is expected to increase in the next few years based on the number of cars due to be deregistered.

Associate Professor Theseira, a transport economist at the Singapore University of Social Sciences, noted that COE prices for Category B in October 2023 reached $150,001, before dropping to $110,001 in the next immediate exercise.

This meant car buyers experienced depreciation almost overnight, and there is an increasing chance of this happening to buyers in the current market.

In a written reply to a parliamentary question by Mr Saktiandi Supaat (Bishan-Toa Payoh GRC), Acting Transport Minister Jeffrey Siow said on May 6 that demand for cars remains strong, likely because of competitive EV prices.

At the same time, while steps have been taken to increase the supply of COEs since May 2023, the supply of Category A certificates peaked in the fourth quarter of 2025 and has declined since.

The latest exercise follows an LTA announcement on April 24 that more COEs will be available between May and July.

During the three months, a total of 19,052 COEs will be made available, up from the 18,824 certificates from February to April – a 1.2 per cent increase.

Fewer Category A certificates are up for bidding. Between May and July, there will be 7,434 such certificates, a 2 per cent drop from the 7,585 COEs for this category available in the preceding three months.

This translates to about 25 fewer Category A certificates for each of the tender exercises during the quota period.