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

May 2026 · 2nd Bidding Results

Updated

This round’s story

Cat A vs Cat B spread widens to $5,272

The spread between Cat A and Cat B reversed sharply this round. Two weeks ago it sat at $1,446, which was the narrowest it had been in at least a year. This round it’s back out to $5,272. For context, the 12-month range on that spread runs from $1,446 all the way to $21,489, so $5,272 is still on the compressed side historically, but the direction flipped fast.

COE quota premiums by category, May 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 $124,229 ▼ -0.4% MoM Quota 1,239 · Bids 2,283
May PQP $112,324
Cat B >1,600cc $129,501 ▲ +2.6% MoM Quota 869 · Bids 1,469
May PQP $114,577
Cat C Goods/Bus $92,223 ▲ +5.4% MoM Quota 292 · Bids 468
May PQP $77,884
Cat D Motorcycle $9,689 ▲ +2.5% MoM Quota 524 · Bids 588
May PQP $8,960
Cat E Open $130,000 ▲ +1.8% MoM Quota 256 · Bids 436
May PQP n/a

Premium Trend · All 5 Categories

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What this could mean

The spread between Cat A and Cat B reversed sharply this round. Two weeks ago it sat at $1,446, which was the narrowest it had been in at least a year. This round it’s back out to $5,272. For context, the 12-month range on that spread runs from $1,446 all the way to $21,489, so $5,272 is still on the compressed side historically, but the direction flipped fast.

What moved it was Cat B, not Cat A. Cat A edged down 0.4% to $124,229. Cat B climbed 2.6% to $129,501. One read of this is that the last round’s near-convergence was the anomaly, and Cat B is simply correcting back toward a more typical gap. Another possibility is that Cat B demand has its own momentum right now. The bid-to-quota ratio for Cat B came in at 1.69, which reads as genuine demand pressure. Cat A’s ratio was higher at 1.84, so demand isn’t thin there either, but Cat A prices still dipped slightly.

That combination is worth sitting with. Cat A had a stronger bid-to-quota ratio than Cat B, yet its price fell. Cat B had a lower ratio, yet its price rose more. We cannot say with confidence what explains that divergence in a single round. It could be the composition of bids, the distribution of bid values, or just noise.

Or it could just be one noisy fortnight.

Cat E closed at $130,000, up 1.8% from $127,700 last round. 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. At $130,000 it sits above both Cat A and Cat B this round, which is the more typical relationship between the three.

Cat C was the biggest mover in percentage terms, up 5.4% to $92,223, though goods vehicles and buses occupy a different buying decision entirely.

The Cat A versus Cat B spread deserves a second look for anyone budgeting across categories. It moved $3,826 in two weeks. Whether it continues widening or compresses again in the next round is worth watching.

Next round of bidding: 4 June 2026

Looking ahead

The Cat A versus Cat B spread deserves a second look for anyone budgeting across categories. It moved $3,826 in two weeks. Whether it continues widening or compresses again in the next round is worth watching.

Next round of bidding: 4 June 2026.

COE Watch, your questions answered

When is the next COE bidding round?

The next round of bidding is on 4 June 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.