Most COE categories see price hikes, except for commercial vehicles.
In the final round of bidding for 2024, the Certificate of Entitlement (COE) premiums saw increases across most categories. The premium for large cars (Category B) rose by 5.8% or S$5,990, reaching S$109,000. This marks the category’s first increase after four consecutive drops since its October peak at S$116,002.
Category E, the open category typically used for larger vehicles, also experienced a significant rise of 4.8%, reaching S$108,992. Similarly, mainstream cars (Category A) saw a 2.1% increase, hitting S$96,000, while motorcycle premiums (Category D) rose by 6.4% to S$8,381. The only category to see a decrease was commercial vehicles (Category C), which dropped slightly by 0.6% to S$69,890.
The rising premiums have been attributed to end-of-year competition among car dealerships aiming to meet sales targets. Many dealers are pushing to register cars before December 31, intensifying bidding activity. Promotional campaigns, such as BMW Eurokars Auto’s refund guarantee if COE premiums fall, reflect the competitive strategies adopted to secure COEs.
Industry experts noted that additional COEs announced by the government for 2025 have caused price fluctuations. While the government plans to release 20,000 additional COEs over the coming years, this has not significantly alleviated price pressures.
Vincent Ng, an automotive consultant, highlighted that despite slower sales due to a softer market, the year-end rush has pushed premiums up. “Dealers are converting orders into registrations, driving demand despite holiday seasonality and high prices,” he explained.
Although prices peaked earlier in October for Categories A and B, buyers’ willingness to spend continues to be tested as COE premiums remain at elevated levels.
