Car COE - Certificate of Entitlement
What is COE? COE is called Certificate of Entitlement. This is a piece of paper issued by Singapore LTA which is also known as Land Transport Authority. This authorised paper allows you to own a vehicle in Singapore. This piece of paper that Singaporeans have paid a dear sum for it, might not even see it before. The COE is tied to the vehicle so that you can drive the car or own the car. This COE is a method for the government to control the population of the vehicles in Singapore. Each new car COE will be a 10 years entitlement.
COE Quota
What is COE Quota? It is the limit that LTA sets for the number of new COE for the number of vehicles to be allowed on the roads. It is often revised to control the vehicle population in Singapore depending on the various factors that they are considering. The factors are mainly due to vehicle population, replacement of COE and adjustment for over projections of the vehicle de-registration.
COE Classifications
COE has few different classes and they are COE Category A, Category B, Category C, Category D and Category E. Cat A is for passenger cars with engine size 1,600cc and below. Cat B is for passenger cars with engine size 1,600cc and above. Cat C is for commercial vehicles in all types. Cat D is for motorcycles and lastly is Cat E is for open cat that can be used for all types.
How to buy COE for your car?
COE can be bought using the COE bidding system. This allows the demand and supply of the COE in the market to work naturally. If the demand is high compared to the supply, the price of the COE will go up alot. If the supply is much more than demand, the COE price will be low. COE bidding happens in every first and third wednesday of every month. As the COE can range from a super low of $1 to as much as $100,000, the car dealer often have to adjust the price of the car according to the COE because it can be a big chunk. ie a Luxury car maybe selling at $100,000 and the COE is $40,000. It is a big portion of the price in the car. Some car dealers have two prices that is guaranteed and non guaranteed COE. Guaranteed COE means that the dealer will get the COE no need what price it hits to a limited set at the contract. Non guaranteed COE means that if they do not get the COE, you won't get the car.
Singapore ownership of the car is very expensive and is one of the most expensive in the whole whole. Think twice before owning a car in Singapore. I guess i rather spend money on my own home stuff like awnings for decks, hardtop gazebo and gazebo canopy.
