COE Surges Again: Category A Hits S$119,003 as Buyers Rush Ahead of Policy Changes
Singapore — The cost of owning a car in Singapore has climbed yet again. In the latest Certificate of Entitlement (COE) bidding exercise on 17 September 2025, premiums surged across almost all categories, with Category A — for smaller cars and EVs — hitting S$119,003, a new high. Category B, which covers larger and more powerful cars, closed at S$136,890, while the Open Category (E) spiked to S$140,502.
The sharp increase comes just days after the government announced that electric vehicle (EV) rebates will be scaled back from 2026, prompting many buyers to bring forward their purchase plans (Channel NewsAsia).
The latest numbers at a glance
According to the Land Transport Authority (LTA), the second COE bidding round in September closed with the following results:
- Category A (cars ≤ 1,600cc & up to 130 bhp, small EVs): S$119,003 (up about S$11,000 from the previous round)
- Category B (larger/more powerful cars, big EVs): S$136,890 (up ~S$9,400)
- Category C (goods vehicles & buses): S$72,501 (slight rise)
- Category D (motorcycles): S$9,209 (moderate increase)
- Category E (open, usable across categories): S$140,502 (up more than S$8,000)
For motorists considering renewal, the Prevailing Quota Premium (PQP) — a three-month moving average of COE prices — also ticked upward, meaning those renewing will feel the pinch too (official LTA COE results PDF).
Why prices jumped
Analysts and industry watchers point to several overlapping factors driving the surge.
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Policy timing — EV rebate cut: The government recently announced that incentives for EV purchases will shrink from 2026. That triggered a rush among buyers looking to lock in rebates while they still last, especially in Categories A and E where many EV models compete (CNA).
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Demand running ahead of supply: The COE system is designed to cap the vehicle population. With a fixed quota and a wave of new bids, prices rose steeply (Motorist.sg).
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Dealer promotions and car fairs: The timing of this exercise coincided with major motoring events and dealer promotions, which often lead to short-term spikes in demand (SGCarMart).
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Market psychology: Rising premiums can create a “buy now or pay more later” effect, drawing in hesitant buyers and reinforcing the upward trend.
Impact on everyday Singaporeans
For ordinary families looking at a new car, the effect is clear: higher monthly repayments. At current premiums, the COE portion alone can add hundreds of dollars a month to loan instalments, even for mass-market models.
For drivers thinking about EVs, the window to enjoy current rebates is narrowing. The recent announcement accelerated demand, but some experts caution that once the rebate adjustment is factored in, buying patterns may settle.
Businesses and fleet owners face higher upfront costs as well. A jump in Category C and E premiums raises the capital needed to replace vans, lorries or buses — potentially leading to higher logistics and delivery charges passed on to consumers.
Motorcyclists, often most affected by affordability concerns, also saw their COE edge upward, though still far below car categories.
Voices from the ground
Public reaction online has been sharp and immediate.
On HardwareZone forums, one user exclaimed: “Wow… CAT B COE at $136,890… so high…” echoing a mix of disbelief and frustration. On Facebook pages like Roads.sg, others commented: “Wow kao. Going higher and higher.”
Over on Reddit’s r/Singapore, discussions turned practical: should one buy now or wait? Some argued that the surge was a temporary rush triggered by rebate news; others feared that waiting might mean even higher prices.
The overall mood: anxiety and resignation, with many questioning if car ownership is slipping further out of reach for middle-income households.
Policy context
The COE system, introduced in 1990, is meant to keep Singapore’s vehicle population in check. By requiring motorists to bid for a 10-year licence, the system ensures roads do not become overwhelmed. But the design also means premiums can swing sharply depending on supply and demand.
Over the years, policymakers have adjusted COE quotas, registration fees and rebates to balance affordability with environmental and urban planning goals. The current debate highlights how one policy tweak — such as adjusting EV rebates — can ripple quickly through the COE market (Straits Times backgrounder).
What’s next
All eyes will be on the next COE bidding round in early October. Will the surge continue, or will demand ease after the initial rush? The trajectory will also depend on whether the government provides more clarity on EV incentives and on any upcoming quota adjustments.
Bottom line
This round’s COE spike, with Category A breaching S$119,000, shows how tightly demand and policy announcements are interwoven. For buyers, it means higher barriers to car ownership. For policymakers, it is another reminder of the delicate balance between transport goals, affordability, and Singaporeans’ aspirations to own a car.
Great — here’s a standalone explainer box you can drop next to the article (in a shaded sidebar, pull-out box, or infographic). It’s written for general readers with minimal jargon.
📌 Explainer: What is COE and PQP?
What is a COE?
- Certificate of Entitlement (COE): A licence that gives you the right to own and use a vehicle in Singapore for 10 years.
- You must successfully bid for a COE before registering a new vehicle.
- COE premiums are set through a twice-monthly auction, where demand and supply decide the closing price.
Why does Singapore have COE?
- To control the vehicle population on limited road space.
- To keep traffic manageable and encourage public transport use.
What is a PQP?
- Prevailing Quota Premium (PQP): The average COE price over the past 3 months.
- Used if you want to renew your car’s COE at the end of 10 years (instead of deregistering).
- PQP moves in the same direction as COE, but changes more gradually.
Quick facts
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5 categories:
- A: Smaller cars (≤1,600cc & ≤130bhp) & small EVs
- B: Larger / more powerful cars & big EVs
- C: Goods vehicles & buses
- D: Motorcycles
- E: Open (can be used in any category)
- Validity: 10 years (renewable with PQP for another 5 or 10 years).
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Key effect: COE can form half or more of a car’s total cost.
