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Unsure on how to renew your COE, or wondering what is the PQP? We'll walk you through how to renew your COE before it expires with this simple drivers guide.
Category: Car Ownership Advice
Cars are very expensive in Singapore.
Sure, you could buy a new car when your current COE expires, but COE renewal is always the most logical (and economical) choice - provided 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 an article.
Why you need to renew your COE?
When your COE expires, you will need to renew it to keep the vehicle registered under your name. If you do not renew your COE, your vehicle will have to be deregistered and scrapped or exported.
When to renew your COE?
You can renew your COE before the existing COE expires. It can even stretch up to one month after the COE expiry date! However, you won't be able to drive your vehicle until you renew your COE.
Furthermore, a late payment fee will apply.
|Vehicle type||Late renewal fee|
|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|
How much does COE renewal cost?
To calculate the COE renewal price, you'll have to take the past three-month average of COE premiums. This average is also known as the Prevailing Quota Premium (PQP). For example, the April CAT A COE PQP is the average of the CAT A COE price from January, February and March. It's pretty straightforward to calculate.
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 April 2020, you can choose to
1. Renew early before your COE 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. Renew in the month your COE expires
• You can find out the PQP for April 2020 after the second bidding exercise in March 2020, and renew your COE on the Friday after the second bidding exercise in March 2020.
• Your COE period will start the day after your current COE expires (which in this case is 4 April 2020)
• You will have until the end of your COE to do this. (3 April)
Check out the latest COE bidding results here.
Should you renew your COE for five or 10 years?
You can choose to renew your COE for either five years or 10 years.
Five years - You will not be eligible to renew your COE any further, and you will have to deregister your vehicle when it expires. On the plus side, you'll only have to pay 50% of the PQP.
10 years - No limit to how many times you want to renew your COE.
Writer's general advice: If you don't want such a huge financial commitment or don't see yourself driving the same vehicle for the next 10 years, go with a five-year renewal instead.