5 cars in Singapore that are worth renewing COE for (2021 Edition)

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5 cars in Singapore that are worth renewing COE for (2021 Edition)

Want to keep car ownership costs low? Here are five car models that are perfect to be given a new lease of life with a COE renewal.

Category: Car Ownership Advice

Yes, we had an article that explained how renewing the COE of your car might be a fatal mistake. However, if you have read the article, you would have known that it doesn't apply to all cars in the market, as with all kinds of decisions, there are pros and cons to consider, and the best course of action is undoubtedly the one where the former outweighs the latter.

So how do you determine what's a good car for COE renewal?

Factors to consider when choosing a car for COE renewal:

1. PARF rebate
When you deregister a car in Singapore towards the end of its COE, you will be eligible for a PARF rebate of 50% of the ARF paid (the ARF is derived from the car's Open Market Value). When you choose to renew the COE, you will be forfeiting this sum of money, effectively adding to the depreciation of the car.

2. Engine capacity
The road tax of cars in Singapore is derived from the engine capacity. Additionally, cars that are over 10 years of age is subjected to an increasing surcharge of 10% per annum up till a maximum of 50% on the 15th year (effectively 150% of the car's original road tax amount). It will make little sense to renew the COE of a car with 6000cc.

3. Parts availability
Parts availability can be a headache for older cars that have long stopped being produced, the problem gets worse with rare and uncommon cars. Hence renewing the COE of a common car with great parts support will make more sense here.

4. Desirability
Much like choosing what new car to buy, the car must be good. The lower cost of a COE-renewed car can also mean that you will be able to enjoy a car that was much more expensive or when new. Imagine being able to drive a luxurious European sedan with an annual depreciation that is less than $10,000!

Calculations are based on the following:

July Category A COE PQP: $46,896

Renew 5 Years Category A COE (50% of PQP): $23,448

July Category B COE PQP: $56,100

Renew 5 Years Category B COE (50% of PQP): $28,050

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Honda Jazz 1.3 A

An economical, yet zippy hatchback that boasts a good standing among first-time car owners

You won't go wrong with an economical hatchback in Singapore - the city environment makes these cars the perfect choice here. Since the first iteration, the Honda Jazz has been a favourite around this part of the world, this second-generation Jazz offers increased space as well as a smoother and quieter ride than before.

It is also economical to run, being reliable, cheap to maintain, low priced as well as having a low road tax thanks to its 1.3-litre engine. Despite its small footprint, the Jazz packs in 384 litres of boot space with full passenger capacity, excellent for a hatchback of this size! The low PARF rebate and used pricing of the Jazz makes it a smart pick for COE renewal. It is also one of the winners in the 2010 SGCM Car of The Year awards.

Used price before COE renewal: $13,800 - $21,000
Used price with 5-year COE renewal: $37,248 - $44,448 (5-year COE) / $60,696 - $67,896 (10-year COE)
Forfeited PARF rebate: $8,370 - $9,971
Annual depreciation after COE renewal (for new owners): $6,907 - $10,658
Annual depreciation after COE renewal (for existing owners): $5,527 - $6,684
Annual road tax: $590, with a 10% increase every year

Want to buy a Honda Jazz? Check out the listings here

Toyota Corolla Altis 1.6A

The sheer number of generations that the Toyota Corolla has is enough to tell you about this car and its legendary status

The ever-so-loved Toyota Corolla is arguably the benchmark for cars in the sedan category. It has always been the people's go-to sedan, with more than 37 million units sold internationally since its introduction in 1966. This economical sedan is well-known for its reliability, practicality, and comfort. Hence, it is often the preferred choice of car for first-time owners.

The Toyota Corolla Altis comes in two main variants, the 1.6-litre, and the 1.8-litre model. The latter variant is less popular among consumers due to its more expensive road tax and COE premium. Regardless, the Corolla Altis' low PARF rebate makes it a good pick for COE renewal.

Used price before COE renewal: $20,800 - $23,500
Used price with 5-year COE renewal: $44,248 - $46,948
Used price with 10-year COE renewal: $67,696 - $70,396
Forfeited PARF rebate: $7,216 - $7,551
Annual depreciation after COE renewal (for new owners): $7,525 - $10,833
Annual depreciation after COE renewal (for existing owners): $5,412 - $6,200
Annual road tax: $742, with a 10% increase every year

Want to buy a Toyota Altis? Check out the listings here

Toyota Wish 1.8A

Ditch that SUV mentality. With its practicality, the Toyota Wish has what it takes to be any family man’s car

When the Toyota Wish was first introduced in Singapore in 2006, it instantly succeeded and ousted its rivals – The Honda Stream and the Mazda 5 (Even with both their combined sales). Its success is due to the modern design and practicality of it as an MPV. Unlike the first generation of the Wish, the second generation introduced in 2009 has two main variants (1.8-litre and 2.0-litre).

Are you worried about it being an underpowered MPV? Fret not. Coupled with Toyota's 7-speed (A) CVT transmission, the Wish has an ample power output of 141 bhp with 173 Nm of torque, and 158 bhp with 196 Nm of torque for both variants, respectively. Unfortunately, the Toyota Wish has been discontinued and replaced by the Toyota Prius+ hybrid. Well, that is a sign for both existing and prospective owners to renew the COE of their Toyota Wish.

Used price before COE renewal: $13,200 - $22,800
Used price with 5-year COE renewal: $41,250 - $50,850
Used price with 10-year COE renewal: from $69,300 - $78,900
Forfeited PARF rebate: $10,752 - $11,122
Annual depreciation after COE renewal (for new owners): $7,102 - $11,400
Annual depreciation after COE renewal (for existing owners): $5,765 - $6,914
Annual road tax: $976, with a 10% increase every year

Want to buy a Toyota Wish? Check out the listings here

Volkswagen Golf 1.4 TSI

The Volkswagen Golf’s direct-shift gearbox (DSG) coupled with a turbocharger makes it an affordable, yet performance-driven hatchback

This is an ideal hatchback for younger consumers seeking a stylish, practical, fuel-economical, yet efficient vehicle – all of which the Volkswagen Golf possesses, making it an excellent choice for COE renewal. This generation of the iconic hatchback previously bagged the premium award for SGCM Car of the Year 2010 (Hatchback category).

Unlike its sporty counterpart - The Volkswagen Scirocco, this iconic 5-door hatchback comes with a turbocharged engine instead of a twin-charged engine. Its ability to produce a power output of 120bhp and 200Nm of torque mated to a 7-speed DSG gearbox allows for an effortless acceleration whenever required. Despite its powerful output, it comes with an affordable road tax due to its 1.4-litre TSI engine.

Used price before COE renewal: $20,800 - $27,900
Used price with 5-year COE renewal: $44,248 - $51,348
Used price with 10-year COE renewal: $67,696 - $74,796
Forfeited PARF rebate: $11,160 - $13,877
Annual depreciation after COE renewal (for new owners): $7,886 - $13,045
Annual depreciation after COE renewal (for existing owners): $5,806 - $7,465
Annual road tax: $620, with a 10% increase every year

Want to buy a VW Golf? Check out the listings here

Kia Cerato Forte 1.6A/1.6M

Want to have the impression of driving a continental car, without breaking the bank? This is the car for you

The Kia Cerato Forte undoubtedly paved the way for the Korean mid-sized sedan segment. It is unlike most Asian cars out on the market. It is well-known to be a pseudo continental car as it bears a resemblance to continental cars of the same period. The Kia Cerato Forte has two main variants. The 1.6-litre variant is offered either in the baseline EX trim or the premium SX trim, while the 2.0-litre variant comes with the SX trim. Both variants are available in automatic and manual transmission.

For a mid-sized sedan, it comes with a generous boot space of 415-litre, which is only 10-litre shy of the Toyota Camry, a luxury sedan. Furthermore, the Cerato Forte is one of the more performance-inclined sedans out there in the market. The 1.6-litre 6-speed transmission can push out 124 bhp and 156 Nm of torque, while the 2.0-litre 6-speed transmission pushes out 156 bhp and 194 Nm of torque.

However, if you feel the aesthetics of the Cerato Forte is still not sporty enough for you, the Kia Cerato Forte Koup is the answer to your woes. With similar performance capability, the Koup is the sporty alternative to the forementioned Cerato Forte. It comes only in the SX trim and features a sporty two-door design.

Used price before COE renewal: $12,500 - $16,800
Used price with 5-year COE renewal: $35,948 - $40,248
Used price with 10-year COE renewal: $59,396 - $63,696
Forfeited PARF rebate: $4,585 - $5,407
Annual depreciation after COE renewal (for new owners): $6,399 - $9,131
Annual depreciation after COE renewal (for existing owners): $5,149 - $5,771
Annual road tax: $738, with a 10% increase every year

Want to buy a Kia Cerato? Check out the listings here