Congratulations on purchasing your dream car! Now that you own your dream car, you need to obtain the necessary documentary requirements so you can drive it. The first thing that you have to obtain is a Certificate of Entitlement (CoE) from the Land Transportation Authority.
What is a Certificate of Entitlement?
The Certificate of Entitlement grants you the right to own and use your car on Singapore’s limited road spaces. It is valid for ten years.
How do I get a CoE?
You can get a Certificate of Entitlement by bidding for it through the Open Bid Uniform Price Auction. Because the country has limited road space, the government restricts the number of vehicles plying them through a bidding process. The bidding process occurs first and third Monday of the month, beginning 12 pm. It lasts three days and ends on the first and third Wednesdays of the month at 4:00 pm. In some cases, the bidding extends until Wednesday of the next week.
You can submit your CoE bid deposits through DBS, Maybank or UOB. If you don’t want to do the bidding yourself, you can assign your car dealer to bid instead. However, that would take you around three to six months.
The bidding process
How much your bid costs depends on how much you are willing to pay for a Certificate of Entitlement. The LTA calls it the reserve price and is different from the bid deposit. Once you name your reserve price, they deduct the amount from your bank account. Bids start at S$10,000 but could go as high as S$50,000 or even S$100,000. The system automatically rejects bidders with insufficient funds in their bank account.
You can revise your bid price anytime during the process. If your bid falls lower than the current CoE price, the system would initially outbid you. You can revise your bid so you could be back in the running. The bid ends once there are enough bidders with reserve prices equal or higher than the current CoE price. Successful bidders pay the new CoE price.
Once your bid is successful, they will give you a temporary CoE which is valid for six months. You need to use this temporary COE or else it will lapse, and you won’t get a bid deposit refund. You also need to pay for your CoE by subtracting your bid deposit from the current CoE price. The price of your CoE is the current CoE price minus the bid deposit.
Once your Certificate of Entitlement expires, you have the option to renew it by paying the Prevailing Quota Premium. If you won’t be renewing your CoE, then you have to deregister your car and send it to the scrap yard.
If you opt to go to a scrap yard, then make sure to choose wisely. Choose a scrap yard that has loads of experience with great customer service like Seng Huat Motors Pte. Ltd (ScrapVehicle.sg) at Paya Ubi Industrial Park. Visit their website at http://www.scrapvehicle.sg.