Proposed S$15,000 COE surcharge too low to deter luxury car buyers, some dealers say

His decision depends on the final package a salesperson can offer, and dealers could “absorb” the S$15,000 surcharge in early-bird or year-end sales, for example, the 59-year-old said.

“For us, we can’t control anything because the bidding is all by agent. So how much they bid, we don’t care. Our thinking is, as long as this is the right price, we’ll buy,” he said.  

Others, like IT professional Andy Ho, 51, felt the proposed reform was “not exciting” as strong demand for cars means COE prices will remain high.

“It’s just a kind of ‘change the soup, but the ingredients are the same’,” he said, adding that he will wait and see how the reforms unfold as his current car has three years left on its COE. 

Car owner Roy See bought his Zeekr 7X, a Category B premium EV, for S$236,000 in 2025. He would not make the same purchase today if he faced a S$15,000 surcharge on prevailing COE prices.

Mr See, 47, said he benefited from higher EV adoption rebates and incentives and lower COE prices last year. COE classification was not foremost in his mind then – he liked his car’s premium positioning and was prepared to pay Category B prices.

Since then, EV adoption rebates and incentives have tapered down, while COE prices have generally risen. A S$15,000 surcharge would be felt more keenly now and be enough to sway his decision, he said.

Lecturer Gerard Joseph Lim, 39, also said he would wait to see how the proposal plays out, in case rebates that make cars more affordable drive up demand and COE premiums instead.

Dr Lim, who is in the market for an affordable Japanese-made car, said the rebate may influence his choice of model, but that the deciding factor is whether he needs a car for his family or personal use.

“If it is a necessity, then I would aim for a lower open market value car since that is what I understand the categorisation is going to be based on,” he said.