The COE has been one controversially debated public policy ever since it’s been implemented. It is a public secret that the government has set their goal into making the public transportation the most frequently used way to travel. With that in mind it is prohibitive to a person to buy a car, given the existing inflation of the COE when it is compared to other countries.

It came quite as a disappointment among car buyers when the larger number of COE released didn’t have any impact on lowering the overhyped price of the certificate. That hides behind the reason that the effect will be offset by the trend of cars being deregistered. Just to be clear, if a vehicle is de-registered before its COE expires, COE Renewal is also an option. That happens after 10 years of releasing the COE.

The registered owner may be granted a rebate on the quota premium (QP) which he has paid depending on the time remaining on the vehicle’s COE. For vehicles de-registered within 2 years of their registration for the purpose of export, the rebate will be capped at 80% of the QP paid on registration. For vehicles registered using Category E COE, the rebate will be also capped at 80% of the QP of either the Category E or its corresponding category, from the same tender exercise, whichever is lower.

The COE is determined by various elements and its quota is more or less staying high during the last couple of years. Now many things are playing a big role here and the fact the quota is keeping such a high price has to do with people rushing to make a bid for the COE. (Just a small reminder that the COE price in 2012 reached $92,000).

Something worth mentioning is the drop that has been visible, since the latest tender it closed up at $54,301. It surely has its ups and downs but there are methods that can be used to make the quota remain standard but very few people would care to follow them. For instance, how could the rate of the COE has an influence on a wealthy person that is buying his third or fourth car? It is all a matter of priority. But the truth is that for the normal citizen, the COE system will ensure that he/she will only buy a car as a last resort.