Owning a motorcycle in Singapore has always been a costly luxury. The main reason is the price of a Certificate of Entitlement (COE) is quite expensive. The Certificate of Entitlement (COE) was introduced in Singapore in 1990 with the aim of restricting road usage and limiting vehicle ownership in this country.
Motorcycle COE has been on a gradual rise since the beginning of 2021. It has increased from about $8700 in May to $9689 during the first week of September. However, there has been a slight decline in the last bid (22 Sep 2021) of about $600. Let’s find out why the COE is so high and what the riders can do to deal with this situation?
Why is the COE increasing so high?
- This larger COE cost can reduce the number of riders from buying a new motorcycle. Compared to the cost of purchasing a motorcycle, the new COE prices are simply unjustifiable. For instance, a new Yamaha Sniper is around $5.000, however, with the current COE cost, this bike might cost more than $13.000. This price does not include road tax and motorbike insurance.
- Demand for purchasing a new bike is increasing during the pandemic. Due to the pandemic, many restaurants can not provide the dine-in service, therefore, the number of riders working in food delivery services like Foodpanda, Deliveroo, GrabFood is increasing, which has inevitably affected the bidding of COE.
What Can You Do as a Rider
- One way to avoid the high COE prices is purchasing a cheaper second hand motorbike. Some dealers may have also bought the COEs at a lower price and while it may be sold at a premium, there’s a better chance of avoiding the recent premiums that are higher.
- Renting a motorbike is also a good choice. Many riders working in food delivery service are using the rental service which only costs around $330-$450 per month. Compared to buying a new motorbike, renting a motorbike is profitable for delivery riders which can also avoid the increase of COE.
At AloRide, you can rent a motorcycle for as low as $45 per day, or $330 per month to try motorcycling in Singapore.
Rent a motorbike with AloRide today. Check out our catalog at https://aloride.com/catalog