The latest September 2025 2nd COE bidding results have taken many car buyers by surprise. Prices surged across most categories, pushing affordability concerns to the forefront. With demand still strong and quotas remaining tight, buyers must navigate carefully to avoid overpaying or mis-timing their purchases.
Table of Contents
Comparison of September 2025 1st vs 2nd Bidding
| COE Category | Sep 2025 1st Bidding | Sep 2025 2nd Bidding | Change | Quota Change | Bids Received Change |
|---|---|---|---|---|---|
| Cat A (≤1600cc & 130bhp or 110kW) | $107,889 | $119,003 | ▲ $11,114 | -3 | +677 |
| Cat B (>1600cc or 130bhp or 110kW) | $127,501 | $136,890 | ▲ $9,389 | +2 | +87 |
| Cat C (Goods Vehicle & Bus) | $71,556 | $72,501 | ▲ $945 | -7 | +12 |
| Cat D (Motorcycle) | $9,101 | $9,209 | ▲ $108 | -1 | -16 |
| Cat E (Open – all except motorcycle) | $127,901 | $140,502 | ▲ $12,601 | 0 | +51 |
Why Are COE Prices Rising So Steeply?
Several factors have contributed to the spike:
- Pent-Up Demand: Many buyers held back earlier in the year waiting for a dip, but as prices refused to fall, demand returned in force.
- Dealer Pushes: Car dealerships often ramp up registrations and bids towards quarter-end to hit sales targets, inflating demand.
- Limited Quota Adjustments: While quotas saw minor shifts, they weren’t sufficient to offset the surge in bids, especially in Categories A and B.
- Open Category Frenzy: Cat E continues to act as a safety net, pulling up prices as buyers spill over from A and B.
Insights for Each Category
- Category A: Breaking past $119k shows that even small- to mid-sized car buyers are willing to stretch budgets. Expect continued volatility here.
- Category B: At nearly $137k, larger car buyers face one of the highest premiums in history. Those waiting for a drop may be disappointed in the short term.
- Category C: Goods vehicle COEs saw only a modest increase. This reflects stable but essential business demand rather than speculative bidding.
- Category D: Motorcycle COEs remained steady, suggesting demand is unaffected by broader car market dynamics.
- Category E: Crossing $140k, Cat E reflects the desperation of spillover demand. Buyers in luxury and electric car segments are paying premiums just to secure a COE.
Advice for Car Buyers
- Consider Timing Carefully – With such sharp increases, short-term relief is unlikely. If your need is urgent, be prepared to commit now. If not, waiting for the next quota adjustment in 2026 may offer relief.
- Explore Alternatives – Consider smaller cars (Cat A instead of Cat B) or even high-quality used cars, where depreciation has slowed relative to COE growth.
- Budget for PQP Renewals – With PQPs climbing, even renewing an existing COE will be costly. Owners nearing renewal should plan ahead.
- Leverage Financing Smartly – With higher premiums, interest costs matter more than ever. Shop around for the lowest loan rates to offset rising COE prices.
- For Businesses – Cat C buyers should lock in now, as logistics and delivery services can ill afford disruptions from future quota tightening.
Outlook for the Rest of 2025
The September 2nd bidding results signal that demand is still outpacing supply. Unless the government significantly raises quota allocations, prices may remain elevated through the year. The next few rounds will reveal whether this is a temporary surge or the new normal.
Conclusion
The September 2025 2nd COE bidding shows a market under pressure, with premiums hitting new highs in multiple categories. For car buyers, careful financial planning and flexible expectations are key. Whether you decide to buy now or wait, keeping a close eye on quota releases and bid patterns will make all the difference.
