The Land Transport Authority (LTA) imposes measures on motorcycle COEs to 'encourage prudent bidding'

The Land Transport Authority (LTA) imposes measures on motorcycle COEs to 'encourage prudent bidding'

The Land Transport Authority (LTA) will raise the bid deposit for motorcycle Certificates of Entitlement (COE) from S$200 to S$800 in an attempt to “encourage prudent bidding behavior”.

Starting from the second COE bidding exercise in March – which will take place from Mar 21 to 23 – the bid deposit for category D will increase from S$200 to S$800.

At the same time, the validity of the Temporary COE will also be shortened from six months to three months. Temporary COEs which have not been used to register a motorcycle within three months will be forfeited and returned to the bidding pool in the next COE quarter.

On the shortened validity period of the Temporary COEs, LTA said that those which have not been used to register a motorcycle within three months will be forfeited and returned to the bidding pool in the next COE quarter.

“This will allow unutilised Temporary COEs to be returned to the market more quickly,” the authority said.

It, however, stressed that the motorcycle temporary COEs that have already been obtained before the second COE bidding exercise this month will not be affected.

“These changes do not apply to other COE categories,” LTA added.

Motorcycle COEs reached an all-time high of S$11,400 at the end of the latest bidding exercise last Wednesday.

At the same time, COE prices rose across all categories that day. This is the fourth consecutive COE bidding since Jan 19 that premiums have risen across all categories of vehicles.

Article Credits:  todayonline, channelnewsasia