On 5th August 2026, Category A’s COE premium dipped to $123,890. Specifically, it has a significant $2,110 reduction from the previous bidding exercise. If you have been waiting for COE prices to fall before buying a car, this might look like good news. However, in reality, it really is not.
Upon reading the Channel News Asia article, you may notice that every other categories such as B, D and E have all closed in to a higher COE price. While category A is still sitting just below its all-time high of $129,000.
Well, you may be thinking what this means for Singapore drivers and businesses? For Singapore drivers and businesses, the takeaway is simple. COE prices do not just go down, and even when they do, ownership still costs a small fortune. This is exactly why more individuals and companies in Singapore are gradually turning to Long Term Car Rental and Long Term Car Leasing instead of riding out the bidding cycle themselves.
What Happened in the Latest COE Bidding Exercise?
Below are five compiled categories with respect to the first bidding exercise. We have also presented the COE price changes from the previous round in a table for ease of reading –
| Category (Cat) | Vehicle Type | Closing Premium | Change from Previous Round |
| Cat A | Cars ≤1,600cc & ≤130bhp, EVs ≤110kW | $123,890 | −$2,110 (−1.7%) |
| Cat B | Cars >1,600cc or >130bhp, EVs >110kW | $129,910 | +$20 |
| Cat C | Goods vehicles & buses | $91,545 | −$2,344 (−2.6%) |
| Cat D | Motorcycles | $10,503 | +$301 (+3.0%) |
| Cat E | Open category | $131,000 | +$1,029 (+0.8%) |
Only Category A and Category C eased this round. Everything else will be closed higher than before.
Zoom out and the picture gets clearer. Category A has climbed close to $17,500 since February 2026, when it closed at $106,320. A single lower print does not undo months of upward pressure. It just means that this round cost slightly less than the last one. The next bidding exercise opens on 17 August 2026, with results due 19 August 2026 and there is no guarantee that the next print favours buyers either.
Why Is COE So Expensive in Singapore?
COE is expensive in Singapore because Singapore issues a fixed, land constrained quota of vehicle permits, and every COE is sold through an open bidding system rather than a set price.
The Land Transport Authority (LTA) releases a limited number of COEs each quota period. It is based largely on the number of deregistered vehicles plus a small growth of allowance. Demand for that quota will consistently outstrip supply. It is driven by owners who are replacing their 10 year COEs that are expiring, private hire fleets that are renewing continuously, and a growing number of EV buyers competing for Category A permits. Every successful bidder pays the same closing price, therefore premiums get bid upwards whenever more people want COE. In a land scarce country such as Singapore, who is also trying to manage road congestion, that is the built in cost of the system. This is also the major reason a COE alone can now cost more than some cars overseas.
The Real Cost of Owning a Car When COE Alone Costs $120,000+
At $123,890, the COE premium alone already exceeds what many people spend on an entire car in other countries, as you might have noticed. In addition, buying a car here stacks the areas below –
- COE premium – set fresh at every bidding exercise
- Open Market Value (OMV) — the vehicle’s base import cost
- Additional Registration Fee (ARF) — tiered up to 220% of OMV
- Registration fees, road tax, and insurance
- Depreciation from day one, plus resale uncertainty as the 10-year COE runs down
Essentially, a Category A car with a $123,890 COE can easily push total ownership that costs past $150,000 to $180,000 before a single kilometre is driven. And the cycle does not end there. For every 10 years or sooner if you scrap earlier, you will be back at the bidding table, exposed to whatever COE happens to cost at that moment. Therefore here at ADrive, we highly encourage you to engage in long term car leasing and rental instead of car owning.
What Are the Benefits of Car Leasing Over Owning?
The core benefit of car leasing over owning is that it replaces a large, unpredictable capital commitment with a monthly fixed cost. It also removes the ownership that are risks to COE renewal, depreciation and resale. In practice, that means –
- Predictable Monthly Costs. One fixed monthly rate covers your vehicle, insurance, and servicing. There are no surprise bills when COE spikes at the next bidding exercise.
- No Ownership Burden. Skip COE renewal decisions, depreciation losses and the hassle of reselling your car as your COE runs down.
- Fully Maintained Vehicles. Servicing, repairs and roadside assistance are handled for you, so you simply just need to drive.
- Flexible Vehicle Choices. Simply switch or extend your rental or lease as your needs change!
How Long Term Car Rental Singapore and Long Term Car Leasing Singapore Sidestep COE Volatility
This is exactly why long term car rental and long term car leasing in Singapore have become the practical alternative when COE moves in both directions. Instead of being at the mercy of whatever the next bidding exercise brings you to, be in control and pay for a fixed monthly rate in correspondence to the length of your agreement!
We strongly believe that for individuals, SMEs, MNCs, and government agencies, this is infinitely more worth than the uncertain chance of buying at a cheaper COE window.
ADrive’s Transparent, Fixed-Rate Long Term Car Rental and Car Leasing Plans
At ADrive, our long term car rental and long term car leasing plans in Singapore are built around transparent pricing! With no hidden costs folded into your monthly rate. Our fleet ranges from economical daily drivers to premium models. This is so that individuals and businesses can find a vehicle that fits their budget without the six-figure upfront commitment required by today’s COE prices.
Ready to Skip the Next COE Bidding Exercise?
COE will keep moving up, down, and sometimes both in the same year. The next bidding exercise closes on 19 August 2026, and there is no telling which way it goes. With ADrive’s Long Term Car Rental and Long Term Car Leasing, you do not have to find out the hard way. So, what are you waiting for! Simply request for a quotation to lock in a transparent, fixed monthly rate with no COE surprises included!
