COE premium for Category A hits high of S$128,105 in another record

SINGAPORE: The Certificate of Entitlement (COE) premium for Category A cars rose to a new high of S$128,105 (US$98,904) on Wednesday (Oct 8), setting a third consecutive record.

Premiums for most other categories also went up at the close of the bidding exercise.

The largest increase was in Category A, which is for smaller cars. The premium rose by about S$9,100 from S$119,003 in the last exercise.

Prices for larger and more powerful cars in Category B rose from S$136,890 to S$141,000

Open category COEs, which are mainly used for large cars, fell to S$140,009 from S$140,502.

COEs for commercial vehicles, which include goods vehicles and buses, increased from S$72,501 to S$74,301.

Motorcycle premiums closed at S$9,810, up from S$9,209 in the last tender.

The Land Transport Authority (LTA) said the higher COE prices this round are partly because of the three-week gap from the last bidding exercise, which is longer than the usual two.

There was also a car roadshow at the end of September, it noted. The Car Expo was held on Sep 27 and 28, giving dealers an opportunity to secure orders.

"More broadly, the lower costs of EVs especially from China, as well as the reduction of incentives for cleaner energy vehicles, have also added to demand," LTA said.

"We advise car buyers to be prudent in bidding for COEs."

The authority added that car leasing companies won 9 per cent of Category A COEs for this bidding exercise.

Authorities announced on Sep 8 that electric vehicle incentives would be scaled down from 2026, although initiatives to encourage drivers to choose vehicles with lower emissions will be extended.

Car dealers previously told CNA that the higher prices showed that buyers were rushing into the market before the reduction in rebates. 

Editor's note: This article has been updated to correct the amount by which the Category A COE price rose from the last tender. We apologise for the error.