The Land Transport Authority’s second September certificate of entitlement exercise closed on 23 September with Category A premiums at S$131,890, but households renewing an existing car should look at a different line on the statement: the prevailing quota premium that sets October renewals. For Cat A, that figure is S$128,715, which means a five-year renewal costs S$64,358 before bank charges — real money for families deciding whether to extend a COE or deregister and switch to ride-hail.
Bid price versus renewal price
Cat A covers smaller cars and lower-output electrics. Bidders in the 23 September round competed for 1,193 certificates and pushed the quota premium down 0.84 per cent from the record S$133,009 set in the first September exercise. That easing made headlines, yet renewals track the three-month PQP average, not the closing bid on any single Wednesday.
Motorists renewing in October will see S$128,715 applied to a 10-year COE or half that sum for a five-year extension. A couple stretching a nine-year-old hatchback for another five years therefore faces a S$64,358 lump sum, payable when the renewal is processed. Add instalment interest if the bank finances the COE component separately from the vehicle loan, and the household bill can clear S$70,000 without buying a new chassis.
How the other categories stack up
Category B’s October PQP is S$131,616 after the latest close at S$133,000. Commercial vehicles in Cat C see S$92,614 for October renewals, while motorcycle riders face an S$11,161 PQP that reflects Cat D’s climb above S$12,000 in the bidding exercise. Open-category Cat E, often used for larger cars, closed at S$137,000; its PQP is not quoted the same way because few owners renew via Cat E, but the headline premium still sets the tone for luxury imports.
The August–October quota supply stands at 19,085 certificates, barely changed from the previous quarter. LTA’s published tables show hundreds of unsuccessful bids in every category this round, evidence that demand still outstrips supply even as quota premiums dip slightly from September’s peaks.
Household decisions this week
Financial planners say the renewal question is now a spreadsheet exercise, not a lifestyle one. If a car’s scrap value plus PARF rebate is within a few thousand dollars of the renewal premium, some owners deregister and bank the rebate instead of locking in another five years of depreciation. Others renew because school runs and elder-care trips do not fit a Grab budget, especially with haze days pushing families away from walking-heavy commutes.
Electric-car buyers watch Cat A’s power cap rules closely: models above 110kW fall into Cat B’s more expensive band. With premiums still above S$130,000 for both car categories, the case for Certificate of Entitlement loans from dealers depends on promotional interest rates that can change before the October renewal window closes.
What the dip does not fix
A modest fall from record bids is not the same as affordable motoring. First-time buyers still need the full quota premium plus car price, and the S$10,000 bid deposit ties up cash during the three-day exercise. Until quota supply rises materially, renewals will remain a six-figure conversation for most Cat A and B owners.
Check OneMotoring for your vehicle’s exact expiry month: PQP labels shift on the first of each month, and paying a day early does not lock the previous month’s lower figure once LTA publishes the new table.