So you’ve saved up enough and you’re ready to splash the cash on a brand-new car. Congratulations! There is still the small matter of bidding for a Certificate of Entitlement, or COE. Even with a deposit put down on your new car, understanding how the COE system works and getting one is the biggest hurdle you’ll have to clear before you can drive off in your ride. What’s a COE? Owning any vehicle in Singapore requires a COE, a certificate that gives you the right to register, own and use a vehicle for 10 years. There are five different categories:

• Category A: Cars with engine capacity of 1,600cc and below
• Category B: Cars with engine capacity exceeding 1,600cc
• Category C: Goods-carrying vehicles and buses
• Category D: Motorcycles
• Category E: This is an “open category” COE, which can be used for any of the above

COE prices are driven by supply and demand. If demand for vehicles is high, COEs will cost more, and vice-versa....