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.

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.

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 D. All other terms and conditions for bidding of a COE remain unchanged.

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