Understanding how Certificate of Entitlement or COE system works in Singapore is your first hurdle to clear before consider buying the commercial vehicle. Buying your first vehicle in Singapore isn’t cheap and you do not want to throw away your money blindly because one of your friends is purchasing… When you have grasped an idea on how it works, you can break down the given price of the cars based on the individual plus points & make the educated and sound decision at if you must purchase or wait.
Suppose you would like to register the vehicle, you will need to have the commercial vehicle COE. Prices of COEs can be driven by the supply & demand. It means if there is the high demand for the vehicles, then COEs may cost more.
COEs will allow you to drive your vehicle on roads for the period of ten years. At an end of 10 years, you may opt to renew the COE for next 5 to 10 years just by paying Prevailing Quota Premium.
This is calculated on a moving average of COE in last 3 months. COEs that are renewed for the period of 5 years aren’t eligible for next renewal and may need to get de-registered when they expire.
Price of the COE must be the major consideration for the prospective car-owner, depending when you buy; price of COE can be more expensive than price of the car. Thus, it is very helpful to have the general idea on what others are paying for it