The Vehicle Quota System was implemented on 1 May 1990.

Under this system, LTA determines the number of new vehicles allowed for registration while the market determines the price of owning a vehicle.

In determining the number of cars allowed for registration, we take into account the prevailing traffic conditions and the number of vehicles taken off the roads permanently.

The quota allocated to each vehicle category is in proportion to that category's share of the total vehicle population. The vehicle quota for a given year is administered through the monthly release of Certificates of Entitlement (COEs).

From April 2002, the Closed COE Bidding System was replaced with the COE Open Bidding System.