A simple guide to COE renewal: How & when should you renew

Cars are very expensive in Singapore.

But if you're looking to save on your motoring costs, you might want to consider a COE renewal for your current car instead of buying a brand new one - provided that is - that your car is well-maintained, in good condition and gives you little to no problems.

We've taken some frequently asked questions about COE renewal and compiled them into this article. 


Why is COE renewal necessary?

When your COE expires, you will need to renew it to keep the vehicle registered under your name. Should your COE fail to be renewed, your vehicle will have to be deregistered and scrapped or exported.
 
 
When to renew your COE?

But you won't have to wait until that happens and then rush out your car's COE renewal. Instead, you can renew your COE before the existing COE expires (on the other hand, you could even stretch that renewal till one month after the COE expiry date)! Nonetheless, do note that you won't be able to drive your vehicle until its COE has been renewed.

Furthermore, a late payment fee will apply, the costs of which we have reproduced in the table below:

Vehicle type	Late renewal fee
Motorcycle	$50
Private motor car (1,000cc and below)	$50
Private motor car (1,001cc to 1,600cc)	$100
Private motor car (1,601cc to 2,000cc)	$150
Private motor car (2,001cc to 3,000cc)	$200
Private motor car (more than 3,000cc)	$250
Business service passenger vehicle (company car)	$250
Goods vehicle and public service vehicle	$250
Others	$250

 
 
How much does COE renewal cost?

To calculate the cost for your COE renewal, you'll have to take the past three-month average of COE premiums from the month you are opting to do the renewal. This average is also known as the Prevailing Quota Premium (PQP). For example, the October Cat A COE PQP is the average of the Cat A COE price from July, August and September. So fret not - calculating this doesn't require you to be a math wizard.

The PQP rate depends on the date you choose to renew your COE and your COE expiry date.

For example, if your COE expires on 3 October 2022, you can choose...

1. An early COE renewal before it expires

• You can find out the PQP for March 2020 after the second bidding exercise in February 2020. You can renew your COE using the March 2020 PQP on the Friday after the second bidding exercise in February 2020.
• Your new COE period will start on 1 April 2020.
• In this case, you have until the end of March to do this.
*Note that the unused portion of your COE will be forfeited (including COE rebates)

2. A COE renewal in the month that your COE expires:

• You can find out the PQP for October 2022 after the second bidding exercise in September 2022, and renew your COE on the Friday after that particular bidding exercise. 
• Your COE period will start the day after your current COE expires (which in this case, will be 4 October 2022) 
• You will have until the end of your COE to do this. (3 October April)

Psst... In case you didn't know, there's actually no need for you to manually calculate the PQP! You can always find the current PWP rate by looking at our COE bidding results page!
 
 
Should you opt for a COE renewal of five or 10 years?

And there's one other thing to note: You can choose to renew your COE for either five years or 10 years.

Opting for a COE renewal of only five years, however, does mean that you will not be allowed to renew your COE any further, and that you will be forced to deregister your vehicle when its COE expires. The plus side of this is that you'll only have to pay 50% of the PQP.

Instead, only vehicles that have their COE renewed for 10 years will be able to enjoy yet another renewal on their next COE expiry date.

Here's some general advice: If you don't want such a huge financial commitment, go with a five-year renewal instead. After all, you may not want to be driving the same vehicle again for the next 10 years. 

How to renew your COE?

Now that you're all set on keeping your car, here are a few options you can choose from for your COE renewal.

1. Your COE renewal can be done online via the OneMotoring website here.

You'll need to have an internet banking account with any of the following banks
- DBS/POSB
- UOB
- Citibank
- Standard Chartered
- OCBC

Do ensure you have sufficient funds in your bank account of choice. And as an extra note that many tend to overlook, remember to increase your daily limit, too, before going through with the COE renewal!

2. Alternatively, you can also choose to complete your COE renewal via snail mail

Complete the application form here and mail it to

Land Transport Authority (LTA)
Customer Service Centre
10 Sin Ming Drive
Singapore (575701)

As it's quite likely that you'll be paying by cheque, make the cheque payable to 'LAND TRANSPORT AUTHORITY' and cross 'A/C Payee Only'. Don't forget to write your vehicle and contact number on the reverse side of the Cheque.

If your COE has expired, LTA only accepts cashier's orders. Do not send cash payments by post.

Your COE renewal application date is the date that LTA receives the application, so it is recommended you your application at least two weeks before your COE expires.

3. Finally, you can opt to complete your COE renewal by heading down personally to LTA's Customer Service Centre

After completing the application form beforehand, you'll have to submit it along with your PQP payment to the LTA Customer Service Centre @ 10 Sin Ming Drive Singapore (575701).

The opening hours for the centre are as follows:
8:00am to 4:30pm - Mondays to Fridays
8:00am to 12:00pm - Saturdays (closed on Sundays)

If your COE has not expired yet, you may pay by cash, cashier's order, NETS or Diners Club card, and last but not least, cheque (do note that your COE will only be renewed when the cheque is cleared).

And if your COE has expired - you have been warned that you will be charged a late fee on top of the PQP. Once more, payment may be made by cash, cashier's order, NETS or Diners Club card.
 
 
Some downsides with COE Renewal

Nothing is perfect in the grander scheme of car ownership in Singapore. As such, you'll also want to note that there will be some downsides to keeping an older car here on our roads:

1. Firstly, you'll have to forfeit your PARF and COE Rebates

Once you renew your COE, the Prevailing Additional Registration Fee (PARF) and COE rebates for your car will be forfeited. You may refer to the table here to calculate your PARF. (To learn more about this in depth, be sure check out this article: 'How much will you get back when you deregister your car'!)

Age at deregistration	PARF rebate
Not more than 5 years	75% of ARF paid
Above 5 but not more than 6 years	70% of ARF paid
Above 6 but not more than 7 years	65% of ARF paid
Above 7 but not more than 8 years	60% of ARF paid
Above 8 but not more than 9 years	55% of ARF paid
Above 9 but not more than 10 years	50% of ARF paid
More than 10 years	Nil

 
2. Secondly, you'll also have to pay an increasing amount of road tax from the tenth year onwards

In line with emissions regulations, this increasing road tax will come as a 10% increase on your road tax every year (capped at a maximum of 50%). Therefore, if your road tax was $1,000 before you renewed your COE, the road tax costs for your vehicle after the first 10 years will be as follows:

1^st year after COE renewal - $1,100
2^nd year after COE renewal - $1,200
3^rd year after COE renewal - $1,300
4^th year after COE renewal - $1,400
5^th year after COE renewal (and every year after that) - $1,500
 
 
Here are some additional information on COE renewal that might interest you:

10 things you should know about renewing your COE

Should you renew your COE in 2020?

If you own these 5 cars, renew your COE immediately (2020 edition)
 
 
How can you get a COE renewal loan?

For your COE renewal, you can get a full 100% loan from banks to pay the PQP! All you have to do is go from bank to bank, compare interest rates, apply for the loan and then wait for approval.

Is there an easier way? Here's where Sgcarmart can help you.

Expert advice for any queries you have

We can guide you along, step by step, by answering any questions you might have to ensure a smooth COE renewal process.

Maximum savings, minimum hassle

We will also help you to find the best COE renewal loan in Singapore. Secondly, all LTA documentation will be handled for you! And finally, to top it all off, we'll even throw in a complimentary pre-COE car inspection for your vehicle to help you make a well-informed decision!

Need to get your car's COE renewed? Let us help with your COE renewal now!

Here are some related articles that might interest you

COE renewal: What costs can you expect

COE renewal - should you choose a bank loan or in-house loan

6 thing to note before you renew your COE for five or 10 years

5 cars in Singapore that are worth renewing COE for 

Should I renew my car COE in 2020?

*This article was updated on 3 October 2022.