How much is certificate of entitlement in Singapore ? The Certificate of Entitlement (COE) in Singapore is a pivotal aspect of vehicle ownership within the city-state, representing the legal right to own a vehicle and use it on public roads for a period of ten years. Instituted in 1990 to manage vehicle population against the backdrop of limited land and high road density, the COE system is part of Singapore’s comprehensive approach to traffic management and environmental sustainability.
The COE system operates on a bidding basis, with open bidding sessions held twice a month. Prospective vehicle owners must place a bid for a COE in the appropriate vehicle category, with successful bids granting the right to register and use a vehicle. The categories are divided based on vehicle type and engine capacity, including cars, motorcycles, and commercial vehicles. After ten years, vehicle owners have the option to renew their COE by paying the Prevailing Quota Premium (PQP), calculated as the moving average of COE prices over the last three months, or to deregister their vehicle.
Also Read : COE Price History Chart
As of recent reports, the cost of acquiring a COE has reached significant highs, with prices varying across different categories. For instance, as of October 2023, the COE for larger cars spiked to a record S$146,002 ($106,376.68), reflecting the post-pandemic recovery and its impact on vehicle demand in Singapore. This has made Singapore one of the most expensive places in the world to own a car. To provide context, including the COE, registration fees, and taxes, the price of a new Toyota Camry Hybrid in Singapore can exceed S$251,388 ($183,000), starkly contrasting with prices in other countries like the U.S..
The Automobile Association of Singapore provides detailed historical data on COE prices, underscoring the fluctuations and trends over time. This data is crucial for prospective buyers to understand market dynamics and strategize their bidding to possibly secure a COE at a more favorable price.
Also Read : What Happens To Cars In Singapore After 10 Years ?
The COE system’s main objective is to limit car ownership and usage, thereby reducing traffic congestion and pollution in a country known for its high road density and limited space. This system is a key component of Singapore’s broader traffic management and environmental strategies, which also include the Vehicle Quota System (VQS) and Electronic Road Pricing (ERP). The VQS limits the number of new vehicles that can be registered in Singapore, further controlling the vehicle population and complementing the COE’s objectives.
The COE, with its significant financial implications for vehicle ownership in Singapore, not only reflects the city-state’s unique approach to managing its vehicle population but also impacts societal views on car ownership and mobility. Despite the high costs, the system plays a critical role in Singapore’s efforts to maintain a sustainable, efficient, and environmentally friendly transportation network.