New measures introduced for motorcycles: increase in COE quota and higher bid deposit

Singapore will see a minor increase in the number of Certificates of Entitlement (COE) available during the period between May and July. Furthermore, the bid deposit for motorcycles will be going up starting from the next tender.

On Friday, April 21, the Land Transport Authority (LTA) declared that the COE quota for May to July would be 9,575. This represents an increase of roughly 1.5% when compared to the previous quarter's 9,437 COEs.

LTA has declared that they will introduce two modifications to the motorcycle COE bidding system to enhance the distribution of resources.

The amount required for the bid deposit is increasing from S$800 to S$1,500. Additionally, the duration for Category D temporary COEs will be reduced from three months to just one month. This change means that the COEs that have expired will be made available for bidding at a quicker rate.

LTA is making changes to the bid deposit and validity period of temporary COEs for motorcycles for the second time in a span of two years.

To promote responsible bidding, the agency revealed its plans to increase the motorcycle bid deposit to S$800 in March 2022. Additionally, the temporary COE's validity was reduced from six months to three.

Actions were taken to decrease worries that dealers were making speculative offers for and retaining transient motorcycle COEs because of the increasing prices in the group.

On Friday, the LTA reported that 457 temporary COEs under Category D, which were valid for motorcycle registration but unused, have expired and have been forfeited from January to March of this year.

The statement mentioned that these items would be available for bidding in the upcoming auctions scheduled for May to July of 2023.

Starting from the bidding session on May 2, the fresh COE quota and Category D gauges will be in effect.

During the most recent bidding round on April 19th, COE premiums experienced a mostly upward trend. The cost of COEs for vehicles in Categories A and B soared to unprecedented levels for the third consecutive time.

Prices for Category A, which covers compact vehicles, exceeded S$100,000 and ended up at S$103,721.

The cost for insuring bigger and stronger vehicles within Group B increased by 2% to reach S$120,889.

COEs under the open category are versatile as they can be utilized for any kind of vehicle, but are often obtained for bigger automobiles. Recently, there was a substantial increase in their price, reaching S$124,501. This figure surpassed the previous highest recorded price of S$118,990 by roughly 4.6%.

notes that this is likely due to factors such as an increase in accidents, theft, and other risks associated with owning a motorcycle. As a result, insurance companies may be raising their premiums to mitigate these risks and cover potential losses. The cost of insuring a motorcycle has gone up from S$12,001 to S$12,179 in the latest update. News reports suggest that this could be because bike owners face more dangers like accidents and robbery. To protect themselves against potential losses, insurance providers have possibly increased their premiums.

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