COE Watch · July 2026 · 2nd Bidding 5 min read

July 2026 · 2nd Bidding Results

Updated

This round’s story

Cat A vs Cat B spread widens to $3,890

Cat A and Cat B have swapped positions this round, and that alone is worth sitting with for a moment. Cat A came in at $126,000 while Cat B settled at $129,890, putting the spread at $3,890 with Cat B sitting higher. Last round the gap was $1,889, also with Cat B above Cat A. Over the past 12 months, that same spread has ranged anywhere from $345 to $21,489, so $3,890 is still on the narrow end historically, but it has widened compared to last round rather than compressed further.

COE quota premiums by category, July 2026 2nd bidding round. Each row is one category, with its premium, its change from the previous round, its quota, the bids received and its PQP figure where LTA publishes one.
Category Quota premium Change from previous round Quota, bids and PQP
Cat A ≤1,600cc $126,000 ▼ -2.3% MoM Quota 1,245 · Bids 1,590
July PQP $123,315
Cat B >1,600cc $129,890 ▼ -0.8% MoM Quota 871 · Bids 1,365
July PQP $124,705
Cat C Goods/Bus $93,889 ▼ -1.2% MoM Quota 301 · Bids 430
July PQP $88,368
Cat D Motorcycle $10,202 0.0% MoM Quota 562 · Bids 620
July PQP $9,737
Cat E Open $129,971 ▲ +0.1% MoM Quota 263 · Bids 450
July PQP n/a

Premium Trend · All 5 Categories

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What this could mean

Cat A and Cat B have swapped positions this round, and that alone is worth sitting with for a moment. Cat A came in at $126,000 while Cat B settled at $129,890, putting the spread at $3,890 with Cat B sitting higher. Last round the gap was $1,889, also with Cat B above Cat A. Over the past 12 months, that same spread has ranged anywhere from $345 to $21,489, so $3,890 is still on the narrow end historically, but it has widened compared to last round rather than compressed further.

What shifted the picture more noticeably is the bid-to-quota ratio. Cat A came in at 1.28, which by the standard reading sits below the 1.5 threshold that signals real demand pressure. Cat B, by contrast, posted a ratio of 1.57, just above that line. One read of this is that Cat B demand held firmer while Cat A softened, and the price movement reflects that: Cat A dropped 2.3% from $129,000 to $126,000, while Cat B fell only 0.8% from $130,889 to $129,890. The numbers are consistent with each other, even if the cause is harder to pin down.

Why Cat A demand might be easing is not something we can say with confidence. One possibility is that buyers who stretched to bid in earlier rounds have already secured their COEs, thinning the pool slightly. Another is that the Cat A quota of 1,245 this round absorbed enough of the remaining demand to bring the ratio down without a dramatic price correction. Or it could just be one noisy round.

Cat E at $129,971 is worth a separate look. It is almost exactly level with Cat B, a gap of just $81. 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. The fact that Cat E is trading this close to Cat B, rather than at a clear premium, could suggest the open-category premium has compressed, though one round is thin evidence for that reading.

The COE results July 2026 picture, taken together, is one of modest softening across the board, with Cat B holding up better than Cat A. Whether that gap widens or closes again next fortnight is worth watching.

Next round of bidding: 5 August 2026

Looking ahead

The COE results July 2026 picture, taken together, is one of modest softening across the board, with Cat B holding up better than Cat A. Whether that gap widens or closes again next fortnight is worth watching.

Next round of bidding: 5 August 2026.

COE Watch, your questions answered

When is the next COE bidding round?

The next round of bidding is on 5 August 2026.

What is the difference between Cat A and Cat B?

Cat A covers cars up to 1,600cc and 130bhp. Cat B covers anything above those limits.

What is PQP?

PQP is the Prevailing Quota Premium, a 3-month moving average of past premiums. It sets the cost to renew an existing COE for another 5 or 10 years.

Does Cat E have a PQP?

No. Cat E is the open category, and a car registered under Cat E is renewed under the category it actually belongs to, so LTA publishes no PQP for Cat E. Cat A, Cat B, Cat C and Cat D each have a PQP, published monthly.