This round’s story
Cat A vs Cat B spread narrows to $2,500
Cat A and Cat B are $2,500 apart this round. That spread was $6,020 just a fortnight ago, and over the past twelve months it has ranged anywhere from $345 to $20,890. The compression is the story of these COE results August 2026, not the absolute levels.
| Category | Quota premium | Change from previous round | Quota, bids and PQP |
|---|---|---|---|
| Cat A ≤1,600cc | $128,501 | ▲ +3.7% MoM | Quota 1,197 · Bids 1,600 August PQP $125,646 |
| Cat B >1,600cc | $131,001 | ▲ +0.8% MoM | Quota 936 · Bids 1,316 August PQP $127,835 |
| Cat C Goods/Bus | $90,002 | ▼ -1.7% MoM | Quota 306 · Bids 446 August PQP $92,599 |
| Cat D Motorcycle | $11,301 | ▲ +7.6% MoM | Quota 512 · Bids 686 August PQP $9,923 |
| Cat E Open | $135,000 | ▲ +3.1% MoM | Quota 254 · Bids 467 August PQP n/a |
Premium Trend · All 5 Categories
What this could mean
Cat A and Cat B are $2,500 apart this round. That spread was $6,020 just a fortnight ago, and over the past twelve months it has ranged anywhere from $345 to $20,890. The compression is the story of these COE results August 2026, not the absolute levels.
Cat A came in at $128,501, up 3.7% from $123,890 last round. Cat B moved only 0.8%, from $129,910 to $131,001. When one category rises nearly five times faster than the other in a single round, the spread closes fast. The traditional assumption that Cat A saves you meaningful money on COE deserves a second look at a $2,500 gap.
What is driving Cat A’s acceleration, we cannot say with confidence. One possibility is that Cat A demand has less flexibility built in. Cat A covers cars up to 1,600cc and 130bhp, and buyers in that segment often need a car in that segment. They cannot easily switch to a Cat B alternative the way someone shopping a larger saloon might. That structural stickiness could push Cat A bids up faster when supply is tight. The bid-to-quota ratio this round was 1.34 for Cat A and 1.41 for Cat B, both below the 1.5 threshold that typically signals strong demand pressure, so neither category is running hot by that measure.
Or it could just be one noisy round.
Cat E settled at $135,000, up 3.1% from $131,000, sitting above both Cat A and Cat B. Cat E carries no PQP of its own, because a car registered under Cat E is renewed under the category it actually belongs to. LTA publishes a PQP for Cat A, Cat B, Cat C and Cat D every month, but none for Cat E. It moves on what the market will bear, with no structural ceiling attached. The fact that it continues to price above Cat A and Cat B is worth watching as the spread between those two categories continues to shift.
Cat D at $11,301 posted a 7.6% jump from $10,503, though the bid count recorded was zero, so that figure warrants a careful read before drawing anything from it.
We are not drawing conclusions from a single round. But if you have been budgeting on the assumption that Cat A sits comfortably below Cat B, the current $2,500 gap is a much narrower cushion than the market has offered for most of the past year.
Next round of bidding: 9 September 2026
Looking ahead
We are not drawing conclusions from a single round. But if you have been budgeting on the assumption that Cat A sits comfortably below Cat B, the current $2,500 gap is a much narrower cushion than the market has offered for most of the past year.
Next round of bidding: 9 September 2026.