Motorcycle COE Price Trends & COE Bidding Explained

Motorcycle Certificate of Entitlement (COE) prices, also known as bike COE prices, in Singapore have been on quite a ride, soaring to new heights and affecting current and would-be motorcyclists across the island. So, what’s driving these costs? In this article, we’ll break down the key factors behind the price hikes, take a closer look at the trends since 2010, and offer a simple, step-by-step guide on how to navigate the COE bidding process. 

Understanding COE

A Certificate of Entitlement (COE) is essentially your ticket to owning and using a vehicle in Singapore, including motorcycles. Think of it as a licence that grants you the right to hit the roads. The COE is a crucial part of the Vehicle Quota System (VQS), which aims to control the number of vehicles on the road to manage traffic congestion. Without a COE, you can’t register a new vehicle, making it a vital document for any motorcyclist in Singapore. Securing a COE requires a successful COE bid, which is essential for vehicle registration. 

Vehicle Quota System (VQS)

The Vehicle Quota System (VQS) is Singapore’s way of keeping the number of new vehicles in check. By limiting the number of new vehicles that can be registered, the VQS helps manage traffic congestion and ensures our roads don’t get too crowded. Vehicles are classified into five categories based on their type and engine capacity: Category A for cars with engine capacity up to 1,600cc, Category B for cars with engine capacity above 1,600cc, Category C for goods vehicles and buses, Category D for motorcycles, and Category E, which is an open category excluding motorcycles. This classification helps in managing the COE quotas more effectively. The COEs are allocated through a COE open bidding system, where the highest bidders secure the available COEs. 

Why Are Motorcycle COE Prices So High?

Singapore’s government enforces a zero-vehicle growth policy to keep traffic manageable in our small, bustling city. This means the number of new Certificates of Entitlement (COEs) up for grabs is directly linked to how many vehicles are deregistered. Lately, there’s been a dip in the number of riders saying goodbye to their old motorcycles. Why? Because the cost of getting a new COE has shot through the roof, making new bikes a luxury many can’t afford. This nudges current riders to hold onto their trusty old bikes much longer than before. 

Adding to the squeeze, motorcycles don’t get the same breaks as cars do—no tax rebates or sweet financial incentives for early deregistration here. Unlike car dealers who often have strategies to manage inventory and curb speculation, motorcycle owners face a more straightforward market dynamic. This lack of perks keeps more bikes registered for longer, tightening the number of available COEs even further. 

And let’s not overlook the cost of a car here, which is sky-high. This pushes even more people towards motorcycles as a more wallet-friendly option, ramping up the demand for COEs even more. All these factors together—fewer bikes being deregistered, costlier COEs, rising motorcycle COE premiums, and a shift towards motorcycles for budget reasons—mix up a perfect storm that drives COE prices up, making it tougher for new riders to hit the roads. 

Factors Affecting COE Prices

Several factors come into play when it comes to COE prices. The most significant ones are the demand for vehicles and the supply of COEs. When more people want to buy vehicles, the demand for COEs goes up, pushing prices higher. Conversely, if fewer COEs are available, the scarcity drives up the prices. The overall state of the economy also plays a role; during economic booms, people are more likely to buy new vehicles, increasing demand for COEs. The Land Transport Authority (LTA) manages the VQS and periodically adjusts the COE quotas to balance supply and demand, which directly impacts COE prices. Understanding how to place a COE bid is crucial for anyone looking to secure a COE. 

COE Trends Since 2010 - Analysis

To get an idea of how COE prices have risen over the years, we look at Motorcycle Certificate of Entitlement (COE) trends in Singapore since 2010. The numbers reveal a pattern marked by significant fluctuations influenced by various economic factors, policy changes, and market demand. The COE bidding results over the years provide a detailed view of these trends and their impact on motorcycle ownership costs. 

• Early 2010s: Motorcycle COE prices were relatively low, often ranging between S$1,000 to S$2,000. This was a period of relative stability with moderate demand. 
• Mid-2010s Surge: Around 2015, COE prices for motorcycles saw a dramatic increase, spiking to as high as S$6,889 in July 2015. This was driven by a reduction in COE quotas, increased demand, and speculation within the market. 
• 2017-2019 Stabilization: After the mid-2010s surge, COE prices began to stabilize, though they remained significantly higher than in the early part of the decade. Prices generally ranged between S$3,000 and S$5,000, influenced by government efforts to moderate COE supply. 
• 2020-2021 Pandemic Impact: The COVID-19 pandemic brought about an initial dip in COE prices due to economic uncertainty and reduced consumer spending. However, as restrictions eased and people sought alternatives to public transport, demand for motorcycles increased, pushing COE prices back up. 
• 2022-2023 Record Highs: In the post-pandemic recovery phase, motorcycle COE prices reached new record highs, crossing the S$12,000 mark in 2022 and 2023. This was partly due to a combination of limited COE quotas, increased demand, and rising costs across the automotive sector. 
• 2024 - Prices Have Moderated: Motorcycle COE prices in 2024 are generally trending downward, hovering around the S$9,000 to S$10,000 range for much of 2024 but remain relatively high compared to historical norms. 

COE Premiums and Bidding

COE premiums are the prices you pay to secure a COE, and they are determined through the COE open bidding system. This system allows individuals and companies to place bids for COEs, with the highest bidders winning the right to register their vehicles. The COE premium is typically higher than the reserve price set by the LTA, reflecting the competitive nature of the bidding process. The demand for COEs and the limited supply available are key factors that influence these premiums. The open bidding system ensures that COEs go to those who value them the most, but it also means that prices can fluctuate significantly. 

What Influences COE Price Trends?

The price trends for Singapore's COE are influenced by a mix of factors. At the heart of it all is the balance between supply and demand. When fewer cars are deregistered, fewer COEs are available. This scarcity leads to sharper price hikes, especially during periods when the government tightens the COE quota.  

Economic conditions swing the pendulum too. In tough times, people might think twice before splurging on a new motor, leading to lower COE prices. But when the economy is booming and wallets are fuller, more people are likely to shop for new motors, driving COE prices up. Government policies also make a big impact. Changes in how many COEs are released or tweaks in vehicle loan regulations can directly affect how much people are willing to pay. And let's not forget about market speculation. When it looks like COEs are going to become scarce, dealers and buyers rush to snap them up, which can really send prices soaring.   

How do COE Prices Impact Motorcyclists?

High COE prices are really shaking things up for motorcyclists in Singapore, making it tough for the average consumer to just hop on and ride. As COE prices climb, they're becoming a huge hurdle for new riders, especially hitting hard in the lower-income brackets where every dollar counts. It's no wonder many riders are hanging onto their old bikes instead of going for shiny new ones, especially without any rebate deals for deregistering their bikes early, it just doesn't make financial sense to switch up. This means bikes stay on the road longer, with owners often choosing to renew the COE on an older bike that's still in good nick rather than forking out big bucks for a new set of wheels.  

And with the high costs of COEs, some are looking towards second-hand bikes where the COE price is already baked into the deal, or even ditching motorbikes altogether for public transport options. Meanwhile, in a bit of a twist, those who can afford it are gravitating towards more premium motorcycle models. This shift means that while the high-end bike market sees some action, the more budget-friendly end of the market is feeling the pinch, with fewer people able to afford the overall costs of motorcycle ownership. It's a tough ride, but it's the current reality on the streets of Singapore.  

Motorcycle COE Bidding Process Explained

Despite the high costs, those who still wish to own a motorcycle in Singapore must go through the COE bidding process. Here’s a step-by-step guide on how it works. 

1. Know the COE Category: Motorcycle COEs fall under Category D, which covers both new and used bikes. 
2. Assess COE Quotas and Price Trends: The number of COEs available is determined by the Land Transport Authority (LTA) and fluctuates based on vehicle deregistration rates. Keeping an eye on recent COE price trends will help you gauge how much to bid. 
3. Prepare Your Finances: Ensure you have sufficient funds before bidding. If needed, explore financing options offered by banks and dealers. 
4. Choose a Bidding Channel: COE bids can be submitted through bank ATMs, internet banking, or via motorcycle dealers who might manage the process for you. 
5. Place Your Bid: Place your COE bid during the bidding period, which occurs twice a month, typically on the first and third Monday. The process lasts for three days, closing on Wednesday at 4 pm. 
6. Monitor and Adjust Your Bid: Keep track of the bidding progress during the period. Automatic bidding options can help secure a COE by increasing your bid up to a pre-set limit. 
7. Review the Results: Results are announced shortly after the bidding period closes. If successful, you’ll need to complete the COE payment. 
8. Register Your Motorcycle: Once you’ve secured a COE, you can register your motorcycle with LTA. Your COE is valid for 10 years. 
9. Renewal and Transfer Options: After 10 years, you can either renew your COE or deregister your motorcycle. Note that motorcycle COEs are generally non-transferable, except in specific cases.  

Quick Guide to Bidding for Your Motorcycle COE

Bidding for a motorcycle COE involves a few straightforward steps: 

1. Check the COE Quota and Bidding Schedule: Visit the LTA website to find out the current COE quota and the schedule for the next bidding exercise. 
2. Determine Your Budget: Decide on a maximum bid amount that you are willing to pay for the COE. 
3. Submit Your Bid: Submit your COE bid through the electronic COE bidding system. This can be done through bank ATMs, internet banking, or via motorcycle dealers. 
4. Wait for the Results: Bidding results are announced shortly after the bidding period closes. Keep an eye on the results to see if your bid was successful. 
5. Pay the COE Premium: If your bid is successful, you will need to pay the COE premium and proceed with registering your motorcycle. 

Remember, the bid deposit for motorcycles is currently S$1,500, and the temporary COE is valid for one month. This process ensures that only those who are serious about owning a motorcycle participate in the bidding, helping to manage the demand for COEs effectively. 

Tips for COE Bidding 

• Be Strategic: COE prices can vary significantly between bidding exercises. It may be beneficial to bid during periods when demand is lower, such as during economic downturns or off-peak periods.  
• Use Automatic Bidding: This feature, available through most banks, increases your bid automatically if the COE price rises, up to your maximum bid amount. This helps to secure a COE without constant monitoring.  
• Consider Financing Options: If upfront payment is challenging, explore financing options with your dealer or bank.  

Deregistering Your Vehicle

If you decide to deregister your motorcycle, you’ll need to follow these steps: 

1. Gather Necessary Documents: Ensure you have the motorcycle’s registration card and the COE document. 
2. Submit Deregistration Application: Submit the application to the LTA either online or in person. 
3. Pay Deregistration Fee: The current fee for deregistration is $15. 
4. Receive COE Rebate: Once deregistration is approved, the LTA will cancel the COE and issue a rebate for any unused COE period. 

Outlook for Singapore Motorcyclists

While COE prices for motorcycles have calmed down a bit recently, they’re still quite unpredictable. As we’ve seen prices can change based on demand, shifts in the economy, or new policies. So, if there are any changes in Singapore’s economic conditions or LTA rules, we could see prices go up or down quite a bit.  

Given the current situation, it’s unlikely we’ll see a big drop in COE prices anytime soon. With high demand and a limited supply of COEs, the prices will probably stay on the higher side for now.  

So, if you’re a motorcyclist in Singapore, it’s a good idea to be prepared for COE prices to stay elevated for the foreseeable future. With the current supply constraints and steady demand, there doesn’t seem to be any quick relief in sight.  

Motorcycle COE - Frequently Asked Questions

How do I renew my motorcycle COE?

To renew your motorcycle COE, check the expiry date, decide whether to renew for 5 or 10 years, calculate the Prevailing Quota Premium (PQP), and then make the bid and payment online through the OneMotoring website using SingPass. Make sure to renew before or within one month after the expiry to avoid late fees, and keep a copy of your receipt for proof of renewal.  

Can I keep my motorcycle after the COE expires?

If you want to keep your motorcycle registered after the COE (Certificate of Entitlement) expires, you'll need to renew it. If you don't renew the COE, the motorcycle must be deregistered and disposed of. Make sure to renew your COE either before it expires or within one month after its expiry, but be aware that a late renewal fee will apply.

How long does a motorcycle COE last?

While many assume a COE renewal is only for 10 years, you can actually choose to renew it for either 5 or 10 years. Opting for a 5-year renewal costs half of the Prevailing Quota Premium (PQP). The PQP is calculated based on the average shift of COE prices for the respective category over the previous three months.  

What happens if your motorcycle COE expires?

If your motorcycle's COE expires and you choose not to renew it, you must deregister the motorcycle. Once deregistered, the motorcycle must be scrapped, exported, or otherwise disposed of according to regulations. If you plan to keep your motorcycle, ensure you renew the COE before or within one month after the expiry date.  

How many times can you renew a motorcycle COE?

There is no limit to how many times you can renew a motorcycle COE, as long as you renew it for 10 years each time. However, if you choose a 5-year renewal, you will not be able to renew it again after it expires, and the motorcycle must be scrapped or deregistered.  

How much is the motorcycle COE late renewal fee?

If you renew your motorcycle COE after it has expired, a late renewal fee will apply. The fee is based on a percentage of your motorcycle’s Prevailing Quota Premium (PQP) and varies depending on how late the renewal is:  

• Within 1 month after expiry: 10% of the PQP.  
• More than 1 month but less than 2 months after expiry: 20% of the PQP.  
• More than 2 months but less than 3 months after expiry: 30% of the PQP.  

If the COE is not renewed within 3 months of its expiry, the vehicle must be deregistered. 

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Citations

https://www.lta.gov.sg/content/ltagov/en/who_we_are/statistics_and_publications/statistics.html