Why coe in singapore

Soong, M. Select Committee calls for car quota scheme. The Business Times , p. COE system kicked off in Vehicle Quota System reviewed. Journeys , p. The information in this article is valid as at June and correct as far as we are able to ascertain from our sources. Due to its small size square kilometers and high urban density, Singapore regulates the number of vehicles crowding its roadways so that traffic congestion does not reach an untenable level.

The VQS imposes a quota on the maximum number of vehicles that can be used in Singapore at any given time, and is enforced through the controlled distribution of a limited supply of COEs. A COE is only good for 10 years; after that, you'll have to either pay to renew it for another 5 or 10 years to keep using your car, or deregister and scrap your car.

Having to get a COE to register and own a car further achieves the goal of reducing car ownership in Singapore by making the cost of owning a car much greater. Other factors can also increase consumer demand and the price of COEs. For example, changes in exhaust emission standards could cause a surge of interest in buying compliant vehicles among consumers anxious to avoid paying a penalty. This increased demand could also drive up COE prices.

You can get a COE by bidding in auctions administered by the LTA that are held bi-weekly throughout the year on the first and third Monday of every month. Depending on the vehicle you are buying, you will bid within one of five categories, depending on the size of your car. Bidders submit bids by naming a reserve price that is the maximum they are willing to pay for the COE. That amount is immediately deducted from their bank account. If there are not sufficient funds to cover the reserve price, the bid will be rejected.

As you can see, the price you'll pay for your COE if you bid successfully will not necessarily be as much as the reserve price you set. If the QP ends up being less than your reserve price, you will be credited back the difference. If, however, the CCP rises above the reserve price you have set, you will be notified that you have been outbid.

You may revise your bid upward to put yourself back in the running for a COE. We have been experiencing some problems with subscriber log-ins and apologise for the inconvenience caused. Until we resolve the issues, subscribers need not log in to access ST Digital articles. But a log-in is still required for our PDFs. Skip to main content. COEs prices ended higher all round in the latest tender on Oct 20, , as news of a smaller quota for Nov-Jan emerged.

Christopher Tan. Share gift link below with your friends and family. Photo: Gaya Chandramohan. Johannes Tjendro. As an exception, goods vehicles and buses will be allowed to grow 0. Category B cars above 1,cc and 97kW will have a quota of 3,, a drop from 4, The quota for Category D motorcycles also decreased from 2, to 2, Bidding under this quota will start on the first Monday in November.