Certificate of Entitlement premiums for smaller cars closed at S$132,004 in the second October bidding exercise on 21 October, the second-highest Category A figure on record, while motorcycle and open-category results moved in opposite directions.
Bidding snapshot
The Land Transport Authority allocated 3,231 certificates across five categories after receiving 4,226 bids. Category B premiums for larger cars rose to S$131,901 from S$130,100. Commercial vehicle COEs climbed to S$92,200. Motorcycle premiums eased to S$10,778, and the open category, often used for luxury cars, slipped to S$135,790 from S$137,000.
What it costs on the road
For a household buying a mass-market hatchback, the COE alone now exceeds the price of many new cars before registration fees, road tax and insurance. Finance companies said loan inquiries typically spike after premiums jump, though approval still depends on income tests and existing debt.
Drivers who missed the deadline for the previous exercise face the same quota pressure: only four Category A certificates went unallocated, suggesting demand still outstrips supply despite high prices.
Consultation clock
Separately, LTA is consulting until 11.59pm on 2 November on merging Categories A and B into a single passenger-car pool with feebates tied to open-market value. The authority has said it will publish findings by the first half of 2027.
Dealers told trade groups that a merged category could smooth volatility between A and B but might raise effective prices for buyers at the cheaper end if surcharges apply to higher-value cars. Respondents can submit views at go.gov.sg/coe-pcd-feedback.
Household takeaway
Until any rule change takes effect, each bidding round remains the binding price for ten years of vehicle ownership. With premiums near S$132,000 for two adjacent car categories, many families are deferring replacements or downsizing to motorcycles, where premiums remain a fraction of car costs.
Financing ripple
Hire-purchase rates have not jumped as sharply as COE itself, but longer loan tenures mean households pay interest on a larger principal. Used-car dealers say inventories of parallel-import models thin out whenever Category A approaches prior peaks.
Electric cars near the Category A power cap may see demand shift if feebates reward lower open-market values. Until LTA publishes its response to the consultation, bidding behaviour in November will still reflect today’s two-car-category split.
Financing ripple
Hire-purchase rates have not jumped as sharply as COE itself, but longer loan tenures mean households pay interest on a larger principal. Used-car dealers say inventories of parallel-import models thin out whenever Category A approaches prior peaks.
Electric cars near the Category A power cap may see demand shift if feebates reward lower open-market values. Until LTA publishes its response to the consultation, bidding behaviour in November will still reflect today’s two-car-category split.