Certificate of Entitlement

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The Certificate of Entitlement (COE) is a scheme instituted by the government of Singapore to curb car ownership, and hence, the number of vehicles on the country's roads. This system, in effect, requires residents of Singapore to bid for the right to buy a motor vehicle, with the number of certificates deliberately restricted.

There are five categories of COE:

Non-transferable categories:

Category A : Cars (1,600cc and below) & taxis
Category B : Cars (1,601cc and above)
Category D : Motorcycles

Transferable categories:

Category C : Goods Vehicles and Buses
Category E : Open Category

COE biddings starts on the first and third Monday of the month and typically lasts for 3 days to the following Wednesday. Bidding duration will be pushed further in some circumstances, including Public Holidays. Bidding results can be obtained here or through the local media on the same day.

Non-transferable COEs are tied to the vehicle, but the vehicle and its COE can be sold to a new owner. Transferable COEs can be changed from a vehicle to another.

An additional restriction on car ownership is the requirement that motor vehicles more than twelve years old, known as 'time expired' vehicles, must either be scrapped, or exported from Singapore, usually to neighbouring countries. Some of these vehicles have been exported further afield to other right hand drive countries like New Zealand, which has traditionally imported such vehicles from Japan.

Owners of such vehicles are given financial incentives to do this, which include a Preferential Additional Registration Fee (PARF).

According to the Land Transport Authority, the number of COEs planned for the year 2006 is 131,127. From 2006 to 2008, the vehicle growth rate will be kept at three percent per annum. ^[1]

This policy was implemented to reduce traffic congestion and it complements other measures to curb road usage such as the Electronic Road Pricing (ERP) scheme. The COE scheme has been criticised for raising the cost of vehicles and as a means for increasing government revenues^{[citation needed]}. However, the Quota Premium (QP) dropped steeply in recent years following announcements of importation tax reduction agreement between ASEAN nations, and reached a historical low point at the 2nd Feburary open bidding and with the QP for Cat. C remains at S$1.

Detailed cost structures when buying a car can be found here.