New car buyers are required to buy a Certificate of Entitlement. The term "bidding" is often used but, in practice, new car dealers assist in the process. The fee of each successfully obtained COE is added on the costs of a new car based on engine size (usually lower for cars with 1600cc engine or smaller, and higher vice versa). COE's for car cost approximately S$14,000 to S$16,000 but the exact amount changes several times a year. The COE is valid for 10 years. There are provisions for a rebate of the COE if the car is scrapped before 10 years.
