LTA wants to merge COE Categories A and B. What it means if you are buying now.

On 8 October 2026, LTA opened a public consultation on merging COE Categories A and B into a single car category. If it goes ahead, every car buyer would bid in one pool for one COE price, and that price would then be adjusted up or down depending on the car.

It would be one of the biggest changes to car COEs since the current split was set in 1999. It is also only a proposal. Here is what is on the table, and what it means if you are deciding whether to buy now.

What LTA is proposing

Today, a car goes into Category A or B based on engine size and power. Up to 1,600cc and 130bhp, or 110kW for an electric car, is Category A. Anything above is Category B.

LTA says that line no longer separates mass-market cars from premium ones very well. Electric cars can be tuned to fit under the Category A limit, and Category A has closed above Category B three times between February and June 2026.

Under the proposal, there would be one car category. Each model would then get a rebate or a surcharge on the COE price, based on that model's median open market value (OMV), the import value that Customs already uses to work out the ARF.

How big the adjustment would be

The maximum is $15,000 either way, a $30,000 gap between the cheapest and the most expensive bands. LTA has put out two options.

LTA estimates that, applied to cars registered in 2025, about half would get a rebate or no adjustment and about half would pay a surcharge. Each model's band would be published every year, so you would know it before you buy, and car retailers could appeal a band.

Where some popular models would land

LTA gave examples under the three-band option. This is not a full list, and bands would be reviewed every year.

For a lot of families looking at a Noah or a Sienta, this reads like good news. For anyone eyeing an Alphard or an Odyssey, the opposite.

The number nobody knows yet

Here is the part most headlines skip. The rebate or surcharge is applied to the merged COE price, and nobody knows what that price would be.

All car buyers would be bidding in one pool against one quota. The clearing price is still set by bidding, so it depends on demand once everyone is competing together. At the latest exercise, Category A closed at $130,001 and Category B at $130,100, almost the same. If the merged price landed near there, a rebate-band car would effectively pay about $15,000 less for its COE than today. If the merged price came in higher, some or all of that rebate disappears.

When it would happen

There is no start date. Feedback closes at 11.59pm on 2 November 2026, and LTA has said it will complete its review and share its recommendations after that. Changes of this size usually come with notice and transition arrangements, so nothing is likely to switch overnight.

LTA is also asking whether the rebate and surcharge should apply when an existing COE is renewed, and says it may not need to. If you own a car today, your COE is not affected by this proposal.

So should you buy now or wait?

It depends on why you are buying.

• You need a car in the next few months. Buy on today's rules. Waiting for a proposal with no start date means months without a car, and COE prices can rise while you wait just as easily as fall.
• You are flexible, and the car you want is in the rebate band. It may be worth watching how the consultation lands. Be honest with yourself about how long you can wait, because there is no date yet.
• You are looking at a car in the surcharge band. If anything, the proposal is a reason not to delay, since a surcharge on top of the COE price would only make that car more expensive.
• You are buying used. A used car already carries its COE. The proposal changes the price of new COEs, so it affects used car prices only indirectly, through what new cars end up costing.

Whichever it is, a guaranteed price protects you from the part you can control: once you sign, your price does not move with the next bidding result.

Have your say

The consultation is open to the public until 2 November 2026. If you have a view, LTA wants to hear it.

If you are trying to decide on a specific car right now, send it to us and we will lay out what you pay under today's rules, so you can weigh it against waiting.

Sources: LTA public consultation on COE categories, opened 8 October 2026, as summarised by MotorMetrics and The Online Citizen. Latest COE results from the CarTimes price list dated 7 October 2026.