How Does COE Open Bidding Work?
Singapore’s Certificate of Entitlement (COE) system uses an open bidding process managed by the Land Transport Authority (LTA). Every month, the LTA releases a fixed quota of COEs across five vehicle categories, and buyers bid against each other to secure one. The result determines the Quota Premium (QP) — the price everyone pays in that bidding exercise.
The bidding process runs twice a month with a sealed-bid, uniform-price model that determines the Quota Premium everyone pays.
The COE Bidding Schedule
The LTA holds two bidding exercises per month, each lasting three days:
- First bidding exercise: Opens on the 1st Monday of the month at 12pm, closes on Wednesday at 4pm.
- Second bidding exercise: Opens on the 3rd Monday of the month at 12pm, closes on Wednesday at 4pm.
Bids can be placed 24 hours a day during the window. The system does not accept late bids — if you miss the 4pm close on the third day, you must wait for the next exercise.
Reserve Price vs Quota Premium
Two key terms drive the bidding mechanics:
| Term | Definition | Role in Bidding |
|---|---|---|
| Reserve Price | The maximum amount you authorise the system to bid up to. | You set this when placing your bid. The system will not exceed it. |
| Quota Premium (QP) | The final price announced after the bidding window closes. | All successful bidders pay this amount — not their individual bid price. |
| Prevailing Quota Premium (PQP) | The average of the last three months' QP for a given category. | Used for COE renewals, not for open bidding. |
The QP is determined by the lowest successful bid among all winning bidders. In other words, if 1,000 COEs are available, the 1,000th highest bid sets the QP.
How the Open Bidding System Works
The bidding system operates on a sealed-bid, uniform-price model:
- All bidders submit their reserve price before the window closes.
- At 4pm on the closing day, the system ranks all bids from highest to lowest.
- The quota is filled starting from the highest bid downwards.
- The lowest successful bid becomes the Quota Premium (QP).
- Every successful bidder pays this QP — not their own reserve price.
This means that even if your reserve price was S$100,000 and the QP closes at S$92,000, you pay only S$92,000. The system rewards early bidding with a realistic reserve price.
What Happens After Bidding Closes
Once the 4pm deadline passes:
- Successful bidders: Must pay the QP within 24 hours via the OneMotoring portal or internet banking. The COE is issued electronically within 5 working days.
- Unsuccessful bidders: Receive a full refund of their bid deposit. No fees are charged for unsuccessful bids.
- Partial success: Bids that meet the QP exactly are included proportionally — if the quota is filled before all equal-price bids are processed, remaining bids at that price are assigned by ballot.
Tips for First-Time Bidders
- Set a realistic reserve price: Review recent QP trends for your vehicle category. Check our COE trends for the latest data.
- Bid early: Submitting early gives you time to revise your reserve price as the QP becomes clearer.
- Monitor the QP: The LTA website publishes the current QP in real time during the bidding window. Use this to decide whether to raise your bid.
- Secure financing beforehand: Know your budget before you bid. If you need a COE loan, arrange it in advance so you can pay the premium promptly.
How the COE Quota is Determined
The total number of COEs available in each bidding exercise depends on the Vehicle Quota (VQ) system, which the LTA sets every three months. The VQ is calculated using two main components:
- Vehicle deregistrations — The number of vehicles expected to be taken off the road during the quarter. When a vehicle is scrapped or exported, its COE is returned to the pool and reissued in future bidding exercises.
- Vehicle population growth cap — An allowable percentage by which the total vehicle population can grow. Since February 2018, the vehicle growth rate has been set at 0% for cars and motorcycles, meaning no net increase in the vehicle population. The growth rate for commercial vehicles was also reduced to 0% from 2021 onward.
The formula is:
Quota = Projected Deregistrations + (Current Vehicle Population x Allowed Growth Rate)
Since the growth rate is 0%, the quota consists almost entirely of replacement COEs from deregistered vehicles. This structural constraint means that COE supply is directly tied to how many old vehicles are being scrapped or exported — which in turn depends on economic conditions, scrap COE values, and the age profile of the vehicle population.
For electric and hybrid vehicles, there have been adjustments to encourage adoption. The LTA introduced the Electric Vehicle Early Adoption Incentive (EEAI) and revised the Additional Registration Fee (ARF) bands to make EVs more affordable. However, these incentives affect upfront vehicle taxes, not the COE quota directly.
Every quarter, the LTA publishes the VQ on the OneMotoring portal, giving bidders visibility into the expected supply for the following three months.
COE Categories in Detail
Singapore’s COE system is divided into five categories, each covering different vehicle types. Understanding your category is critical, because a COE from one category cannot be used for a vehicle in another.
| Category | Vehicle Types | Specification | Typical Use |
|---|---|---|---|
| Cat A | Small cars | Up to 1,600cc engine capacity AND up to 130 kW motor power | Family sedans, compact hatchbacks (e.g., Toyota Corolla Altis, Honda Civic, Hyundai Avante) |
| Cat B | Large cars | Above 1,600cc OR above 130 kW motor power | Luxury sedans, SUVs, performance vehicles (e.g., Mercedes-Benz E-Class, BMW 5 Series, Tesla Model 3 — the latter falls under Cat B due to its motor power exceeding 130 kW) |
| Cat C | Goods vehicles and buses | All goods vehicles and buses regardless of engine capacity | Light goods vehicles (vans, lorries), heavy goods vehicles, passenger buses, minibuses used commercially |
| Cat D | Motorcycles | All motorcycles regardless of engine capacity | Scooters, commuter bikes, leisure motorcycles |
| Cat E (Open) | Any vehicle (except motorcycles) | Not restricted by engine capacity or power output; can be used for Cat A, B, or C vehicles | Used when a buyer wants flexibility, or when bidding in a specific category is too competitive. Cat E COEs sold with a used car may also be transferred to a different vehicle category |
Cat E (Open) is unique because it can be used to register any vehicle in Cat A, B, or C. This makes it attractive for buyers who want flexibility, especially if they plan to upgrade to a different vehicle category later. However, because Cat E draws demand from multiple categories, it typically commands the highest premiums among all categories.
A note on electric vehicles: EV classification is based on motor power (kW) rather than engine displacement. A high-performance EV with motor power exceeding 130 kW automatically falls into Cat B, even though it has no engine cc. This has pushed more EVs into Cat B in recent years, contributing to higher QPs in that category.
Understanding COE Price Trends
COE prices in Singapore are influenced by several key factors that bidders should understand before entering the market.
Economic conditions. When the economy is strong, consumer confidence rises and more people buy cars, driving up COE demand and prices. During downturns (e.g., the COVID-19 pandemic), demand softens and QPs can fall sharply. Cat B premiums, for example, dropped below S$30,000 in mid-2020 before rebounding to over S$100,000 in 2023.
COE supply from deregistrations. Since the vehicle growth rate is 0%, supply depends on how many old vehicles are scrapped or exported. A wave of COE expiries can temporarily increase supply and moderate prices. Conversely, if fewer vehicles are deregistered — for example, because owners choose to renew their COEs rather than scrap them — supply tightens and prices rise.
Electric vehicle adoption. The shift toward EVs has complex effects on COE prices. On one hand, EVs are typically in Cat B (due to motor power above 130 kW), concentrating demand in that category. On the other hand, government incentives like the EV Early Adoption Incentive (EEAI) reduce the overall cost of EV ownership, potentially encouraging more buyers — which puts upward pressure on COE prices across affected categories.
Quota Premium (QP) vs Prevailing Quota Premium (PQP). It is important to distinguish between these two terms:
- QP is the price set at each individual bidding exercise. It can fluctuate significantly from one exercise to the next.
- PQP is the three-month moving average of the QP across the last six bidding exercises. The PQP is more stable and is the price used when you renew an existing COE for another 5 or 10 years.
The PQP is a useful benchmark for bidders. If the current QP is well above the PQP, it may be a sign of temporary demand pressure — or a new normal. Checking the COE trends page regularly can help you spot these patterns.
Seasonal effects. COE prices often rise in the lead-up to the Chinese New Year period (January-February) as more buyers enter the market. Prices may also soften in the final bidding exercises of the year when some buyers defer their purchases.
After You Win a COE
Winning a COE is only the first step. Here is what happens next and what you need to know:
- Payment deadline. You must pay the Quota Premium within 24 hours of the bidding results being announced. Payment is made through the OneMotoring portal using internet banking or eNets. If you fail to pay on time, your bid deposit is forfeited and the COE is not issued.
- Vehicle registration window. Once you have paid, your COE is issued within five working days. You then have six months from the date of the bidding exercise to register a vehicle using that COE. If you do not register a vehicle within this period, the COE is forfeited without a refund.
- Used COEs (Cat E). If you purchase a used COE from the open category (Cat E) that has been deregistered and made available for transfer, you generally have only three months to register it to a vehicle.
- Extension requests. In limited circumstances, the LTA may grant extensions to the six-month registration period. These are not guaranteed and are assessed on a case-by-case basis. Extension fees may apply, and the extension duration is typically short.
- COE validity period. Your COE is valid for 10 years from the date the vehicle is first registered — not from the date you won the bid. This means if you take three months to register your car, you still get 10 full years of COE from the registration date. For used cars with an existing COE, the 10-year period started when the original owner first registered the vehicle, so the remaining COE period is shorter.
- Non-transferability. COEs cannot be transferred between individuals. If you sell your car, the remaining COE is transferred with the vehicle to the new owner. You cannot sell your COE separately. This is an important consideration if you plan to keep your car for only a few years — the value of the remaining COE is reflected in the resale price of your car.
Financing Your COE
COE prices can reach S$100,000 or more, so arranging financing before you bid is a practical necessity for most buyers.
Know your budget before bidding. Your reserve price should account for both the COE and the vehicle cost. If you win a bid at S$95,000 but only have S$80,000 budgeted, you may have to forfeit your deposit. Set a maximum reserve price before the bidding exercise opens and stick to it — the real-time QP display can tempt you to overextend.
Arranging a COE loan. Some financial institutions offer dedicated COE loans that cover the Quota Premium payment. These loans can be processed quickly to meet the 24-hour payment deadline. Check our COE loan options to compare rates and terms from different lenders. You can also apply online in under five minutes, so there is no need to delay your bid while waiting for loan approval.
Cash and CPF considerations. The COE premium must be paid in cash or via a loan — you cannot use CPF savings to pay for it. The same applies to the vehicle downpayment (though the ongoing vehicle expenses like installment payments may have different rules depending on the financing structure).
Factor in the ARF and other taxes. The COE is one part of the total cost of owning a car in Singapore. You also need to budget for the Additional Registration Fee (ARF), which is tiered based on the vehicle’s Open Market Value (OMV), as well as excise duty, GST, and the Vehicle Registration Fee. These costs can add tens of thousands of dollars on top of the COE premium.
By planning your financing early, you can bid with confidence knowing you can complete the payment within the 24-hour window.
Frequently Asked Questions
Yes, you can bid for a COE as an individual without having a car registered. You must transfer the COE to a vehicle within six months, or it will be forfeited.
Yes. If your bid is unsuccessful, the deposit is fully refunded. If you are successful but fail to pay the QP, the deposit is forfeited.
No, COEs are non-transferable between individuals. A used COE can only be transferred together with the vehicle it is attached to.
Bids are category-specific and cannot be moved between categories. If you win a Cat A bid but need a Cat B COE, you must forgo the Cat A bid (forfeit the deposit) and bid again in the correct category.
Need help financing your COE? Compare COE loan options or apply online in under 5 minutes.
Related Articles
coe guides
Cat A vs Cat B vs Cat C COE: What's the Difference?
Singapore's COE system has five categories (A, B, C, D, E) for different vehicle types. Learn which category applies to your car, motorcycle, or commercial vehicle.
2026-03-15T00:00:00.000Z · 6 min read
coe guides
COE Loan Eligibility Singapore: Who Can Apply?
Check COE loan eligibility requirements in Singapore for citizens, PRs, and Employment Pass holders. Find out what lenders look for in a COE renewal loan application.
2026-04-10T00:00:00.000Z · 6 min read
coe guides
COE Loan for EP Holders in Singapore: Eligibility & Requirements
Employment Pass holders can qualify for COE loans in Singapore with minimum annual incomes of S$60,000–S$80,000. Learn which lenders accept EP holders and what documents you need.
2026-03-10T00:00:00.000Z · 6 min read