Certificate of Entitlement (COE) bidding is fierce. As Singaporean locals will know, COE is required to register a vehicle in Singapore.
COE prices are driven by supply and demand, which means if higher demand for vehicles will also increase the cost of COE.
COE allows driving in Singapore for 10 years. Before expiry, you can opt to renew your COE for another five or 10 years by paying the Prevailing Quota Premium (PQP). PQP is calculated based on the average of the COE in the last three months. Renewed COS for a period of five years are not eligible for another renewal and will be de-registered after expiring. Otherwise, renewals have no limits.
Here’s how you can boost your chances of winning COE bidding in Singapore.
- Ensure that you have at least $10,000 in your bank account. It will be siphoned as soon as you place your bid. If your bid is unsuccessful, it will be automatically credited back into your account
- Check your finances to set a reasonable reserve price or the maximum amount you're comfortable paying for your COE. If the current COE price exceeds your reserve price, you’ll be forced to change your reserve price or you're out
- Each time you modify your reserve price, you’ll need to pay some administrative charges to be accounted for. This ranges from $2 to $10.
- Each bidding will have up to three days processing time where people will become increasingly aggressive with their bids as the bidding window closes.
Common COE questions
What if I do not have sufficient funds in my account?
If you’re submitting COE through a banking partner and your account doesn’t have enough funds to cover the total bid deposit and administrative fees, your bids in the batch will be rejected. Ensure there’s enough in your account before submitting your bid.
Is there a limit to the number of bids I can submit?
No, there is no limit to the number of bids you can submit, but LTA has a rule of one bid per individual. This means you are only allowed to submit one bid for each of your customers. Duplicate bids will be rejected. Bids can be batch submitted with a maximum of 20 bids each.
When must the balance of the bid be paid to LTA?
The balance of the bid needs to be paid after the results are announced. And when your customers register their cars. Bid balances should be paid directly to LTA.
Getting a COE
You'll have to bid for it similar to an art gallery auction. Bidding exercises happen twice monthly, so just get the best date your schedule allows. Be vigilant about the Land Transport Authority's (LTA) website as they regularly announce the vehicle quotas or the maximum number of vehicles allowed for registration before every bidding exercise. Begin by arranging a short call with a relationship manager in a local bank that assists with coe bidding.
Summary
To get started on the road to driving a car in the streets of Singapore, figure out your finances to increase your win rate, and make sure you’re banking with a good institution. This will save time and stress bidding for COE. Some banks have online portals where you can submit, monitor, and revise your bids using Singapore’s most widely used bidding channel for local motor traders.