The Singapore COE Prices September 2025 results are finally out. Once again, premiums have reached historic highs, putting pressure on car buyers across the island.
The Certificate of Entitlement (COE) is not just a fee—it is the license to own a car in Singapore for 10 years. With demand rising and quotas limited, September 2025 turned into one of the most competitive bidding rounds ever.
What is a COE?
The COE system began in 1990 to control vehicle growth and reduce traffic congestion.
Each COE lasts 10 years and is obtained through a bidding process. Prices depend on how many certificates are released and how many people are bidding at the same time. When more people chase fewer slots, prices skyrocket.
This month’s results show exactly that—tight supply and intense demand pushing premiums to record-breaking levels.
September 2025 COE Results by Category
Category A (Small Cars up to 1,600cc & 130bhp)
Premiums rose to around S$105,000. These cars, often chosen by families and new buyers, are now slipping beyond the reach of middle-income households. Many are switching attention to used cars instead.
Category B (Larger Cars above 1,600cc or 130bhp)
This category climbed even higher, hitting nearly S$135,000. Luxury sedans and premium SUVs dominate here. Despite the cost, demand from wealthier buyers and corporate fleets keeps prices elevated.
Category C (Goods Vehicles & Buses)
Commercial vehicles saw premiums close to S$75,000. For logistics and transport operators, this means higher operating costs. Delivery fees and service charges may rise as businesses pass on the burden.
Category D (Motorcycles)
Motorcycles jumped to about S$14,000. Once considered the cheapest transport option, motorbikes are now also facing affordability concerns. Food delivery riders and courier companies are particularly affected.
Category E (Open Category)
The open category, often used for luxury cars, broke past S$140,000. This shows that high-end buyers are willing to pay any price to secure their vehicles, making it a benchmark of overall COE inflation.
Why COE Prices Are So High in September 2025
Several reasons explain the surge:
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Low Quota: Fewer cars were deregistered this year, reducing the number of new COEs released.
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High Demand: New car launches, especially electric vehicles, attracted strong interest.
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Speculative Bidding: Dealers bid aggressively to secure stock, expecting resale profits.
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Economic Strength: Stable incomes and strong corporate demand kept the market active.
The mix of these factors turned September 2025 into one of the costliest bidding rounds in recent years.
Impact on Car Buyers
For everyday Singaporeans, owning a car is moving further out of reach. Families that once planned to buy new cars are now considering used models with remaining COE life.
Financing costs are also rising, as higher COE premiums increase the total loan size. Monthly installments are climbing, putting pressure on household budgets.
Effect on Dealers and the Auto Market
Car dealerships are adapting by offering flexible payment packages, free servicing deals, and trade-in bonuses. Still, many buyers are hesitant.
The used car market is booming instead. Cars with several years of COE left are being snapped up quickly, as they offer better value compared to buying brand new.
Government Response
The government continues to defend the COE system as a necessary tool for traffic control. However, there are increasing calls for tweaks.
Experts suggest adjusting quotas, offering relief to essential categories like motorcycles, or expanding public transport benefits. While no major policy shift has been announced yet, the September 2025 spike has renewed debate.
Looking Ahead
The future remains uncertain. With new electric models such as the Tesla Model 3 and BYD Dolphin entering the market, demand will stay strong. Unless COE supply rises significantly, premiums are unlikely to fall.
Buyers may need to explore alternatives such as car sharing, leasing, or public transport to cope with rising costs.
Conclusion
The Singapore COE Prices September 2025 mark another milestone in the island’s car ownership journey. Premiums across all categories hit new highs, making affordability a central concern for families and businesses alike.
The COE system remains an essential policy tool, but its impact is now reshaping buying behavior, boosting the used car market, and sparking policy debates. One thing is certain: in Singapore, the COE is not just a piece of paper—it defines the entire auto market.
FAQs
What is the COE price for small cars in September 2025?
Category A premiums reached around S$105,000 for cars up to 1,600cc and 130bhp.
Which category had the highest COE in September 2025?
The Open Category (E) recorded the highest price, climbing above S$140,000.
Why are COE prices so high now?
Limited quotas, strong demand from new car launches, speculative dealer bidding, and resilient economic conditions all pushed prices upward.
How does this affect car buyers?
New car ownership is becoming less affordable. Many buyers are turning to used cars, leasing, or delaying purchases.
Will COE prices drop soon?
Experts suggest premiums will remain high unless the government increases quotas. With strong EV demand ahead, prices may stay elevated.
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