50% Reduction in COE Bid Deposit for Categories A, B, C and E

News Releases 25 Aug 2009 COE bid deposit

1. The Land Transport Authority (LTA) is pleased to announce that the bid deposit1 for Certificate of Entitlements (COE) in Categories A, B, C and E2 will be reduced by 50% from $10,000 to $5,000 per bid application for COE bidding exercises conducted from October 2009 to September 2010.

2. The COE bid deposit is intended to deter frivolous or speculative bids which deny genuine bidders from getting a COE. LTA has received feedback from motor traders that companies are still facing some cash flow problems. This reduction in the COE bid deposit is a temporary relief measure to help businesses, particularly motor traders and prospective vehicle owners reduce their financing needs and free up funds currently used as deposits.

3. From 5 October 2009, motor dealers and public will be able to place a bid deposit of $5,000 per bid application for COE bidding exercises in Categories A, B, C and E conducted from October 2009 to September 2010.

4. As the bid deposit of $200 for Category D is much lower compared to other COE Categories, there will be no change to the bid deposit for Category D3. All other terms and conditions for bidding of a COE remain unchanged.

5. Information on the reduced COE bid deposit will also be available online at the ONE.MOTORING website (http://www.onemotoring.com.sg).

1The intent of the COE bid deposit is to deter frivolous bid applications The current bid deposit quantum was set at $10,000 for Categories A, B, C and E after consultation with motor traders and the Automobile Association of Singapore, such that it is sufficiently high to deter frivolous bids and yet low enough for an individual to submit a bid on his/her own.

2 COE Categories :
Category A - Cars (1,600cc and below) and Taxis
Category B - Cars (1,601cc and above)
Category C - Goods Vehicles and Buses
Category E - Open Category

3Category D - Motorcycles

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