A licence that gives you the right to own and use a vehicle in Singapore for 10 years, bid for in twice-monthly LTA bidding exercises. Because the number of COEs is capped to control the vehicle population, the price is set by supply and demand and can swing widely.
Example: A Category A car COE (for smaller, less powerful cars) can cost tens of thousands of dollars on top of the car's base price, and the quota premium is non-refundable once the 10 years are up.
A Certificate of Entitlement lets you keep and use a vehicle on the road for 10 years from registration. At the end, you either deregister (scrap) the vehicle or renew the COE by paying the Prevailing Quota Premium (PQP).
Cat A (smaller cars up to 1,600cc and 97kW), Cat B (larger or more powerful cars), Cat C (goods vehicles and buses), Cat D (motorcycles), and Cat E (an open category that can be used for any vehicle type except motorcycles). Cat E often closes highest because it is unconstrained.
Prices move with each twice-monthly bidding exercise. In the second June 2026 exercise, Cat A closed around S$123,800, Cat B around S$123,500 and Cat E around S$129,000 — so the COE alone can cost more than the car itself. Check the latest LTA results before committing.
A 10-year renewal costs the full PQP and can be renewed again afterwards. A 5-year renewal costs only 50% of the PQP but is final — the vehicle must be deregistered when it lapses and cannot be renewed a second time.