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Certificate of Entitlement
 
 
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The Certificate of Entitlement (COE), instituted by the government of Singapore
Singapore

Singapore , officially the Republic of Singapore, is an island country microstate located at the southern tip of the Malay Peninsula. It lies 137 kilometres north of the equator, south of the Malaysian state of Johor and north of Indonesia's Riau Islands....
, is a program designed to limit car
Automobile

An automobile or motor car is a wheeled motor vehicle for transportation passengers, which also carries its own car engine or motor. Most definitions of the term specify that automobiles are designed to run primarily on roads, to have seating for one to eight people, to typically have four wheels, and to be constructed principally f...
 ownership
Ownership

Ownership is the state or fact of exclusive rights and control over property, which may be an personal property, land ownership, or some other kind of property ....
, 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:




COE biddings starts on the first and third Monday of the month and typically lasts for 3 days to the following Wednesday.






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The Certificate of Entitlement (COE), instituted by the government of Singapore
Singapore

Singapore , officially the Republic of Singapore, is an island country microstate located at the southern tip of the Malay Peninsula. It lies 137 kilometres north of the equator, south of the Malaysian state of Johor and north of Indonesia's Riau Islands....
, is a program designed to limit car
Automobile

An automobile or motor car is a wheeled motor vehicle for transportation passengers, which also carries its own car engine or motor. Most definitions of the term specify that automobiles are designed to run primarily on roads, to have seating for one to eight people, to typically have four wheels, and to be constructed principally f...
 ownership
Ownership

Ownership is the state or fact of exclusive rights and control over property, which may be an personal property, land ownership, or some other kind of property ....
, 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 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 ten 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
New Zealand

New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses , and numerous Islands of New Zealand, most notably Stewart Island/Rakiura and the Chatham Islands....
, which has traditionally imported such vehicles from Japan
Japan

Japan is an island country in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, People's Republic of China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south....
. The result of the peculiarities of the Singapore car market has resulted in Singapore being the second largest exporter of used cars in the world after Japan. Cars are exported to many countries, including Libya
Libya

Libya , officially the Great Socialist People's Libyan Arab Jamahiriya , is a country located in North Africa. Bordering the Mediterranean Sea to the north, Libya lies between Egypt to the east, Sudan to the southeast, Chad and Niger to the south, and Algeria and Tunisia to the west....
 and Trinidad
Trinidad

Trinidad is the larger and more populous of the two major islands and islands of Trinidad and Tobago which make up the country of Trinidad and Tobago....
.

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
Land Transport Authority

File:Land Transport Authority, Hampshire Office, Aug 06.JPGFile:LTA office .JPGThe Land Transport Authority of Singapore is a Statutory boards of the Singapore Government of the Ministry of Transport ....
, the number of COEs planned for the year 2006 is 131,127. From 2006 to 2008, the vehicle growth rate will be kept at 1.5% percent per annum.

This program was implemented to reduce traffic congestion and it complements other measures to curb road usage such as the Electronic Road Pricing
Electronic Road Pricing

File:ERPBugis.JPGThe Electronic Road Pricing scheme is an electronic toll collection scheme adopted in Singapore to manage traffic by road pricing, and as a usage-based taxation mechanism to complement the purchase-based Certificate of Entitlement system....
 (ERP) program. However, the Quota Premium (QP) dropped steeply in recent years following announcements of importation tax reduction agreement between ASEAN nations.

Detailed cost structures when buying a car can be found .

On the Second Open Bidding of November 2008, the Quota Premium result made a historical plunge with the final price at S$2 for Category A.

Latest Updated Quota Premium (December 2008 2nd Open Bidding)

Category Current Quota Premium Previous Quota Premium / Difference
A (1600cc and below, taxi) S$6,200 S$7,721 S$1,521
B (1601cc and above) S$2,656 S$6,501 S$3,845
C (Goods Vehicle and Bus) S$4,001 S$5,212 S$1,211
D (Motorcycles) S$1,059 S$1,102 S$43
E (Open) S$6,509 S$7,589 S$1,080


Price is in Singapore Dollar
Singapore dollar

The dollar is the currency of Singapore. It is normally abbreviated with the dollar sign $, or alternatively S$ to distinguish it from other dollar-denominated currencies....
 (SGD)

Average vehicle pricing (March 2008):

All prices are in Singapore dollar
Singapore dollar

The dollar is the currency of Singapore. It is normally abbreviated with the dollar sign $, or alternatively S$ to distinguish it from other dollar-denominated currencies....
s.
  • Supermini
    Supermini car

    A supermini is a British car classification term that describes automobiles larger than a city car but smaller than a small family car. This car class is also known as the B-segment across Europe, and as Subcompact in North America....
     : S$35,999 - S$56,500
  • Subcompact : S$56,400 - S$60,488
  • Compact
    Compact car

    A compact , small family or c-segment car is a car classification of automobile which are larger than a supermini car and smaller than a large family car....
     : S$70,388 - S$80,000
  • Mid-size : S$90,000 - S$110,000
  • Full-size sedan : S$120,000 <


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