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When renewing your COE, should you renew it for five or 10 years? Here are six things to consider before committing.
Category: Car Ownership Advice
It's unsurprising that Certificate of Entitlement (COE) premiums are expected to take a hit (amongst many other things), due to the pandemic.
While it may be exciting to buy a new car, we reckon that it's better to save money and simply renew your COE. But, should you renew your COE for five or 10 years?
Price wise, five year COE premiums are naturally cheaper than 10 year COE premiums by half.
Do note however, that for the five year COE renewals, your car must be deregistered after five years and cannot be renewed ay further. Whereas for 10 year COE renewals, you can renew your COE an unlimited number of times.
There are other things to factor in and we'll walk you through it.
- What is PQP and why does it matter?
- How is PQP calculated?
- Do I only need to pay for PQP?
- How expensive is road tax after 10 years?
- Can my car last an additional 10 years?
- When is the best time to renew my COE?
What is PQP and why does it matter?
To keep your existing car and drive it on road, you need to pay the Prevailing Quota Premium (PQP).
The PQP is the amount you'll have to pay when you renew your COE.
It makes economical sense to extend the life of your car if you car is still in good condition, accident-free and you have been dilligent with its servicing and maintenance.
How is PQP calculated?
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To calculate the PQP, you'll have to take the past three-month average of COE premiums.
Here are the rates from April to July 2020 from One.Motoring
Seeing a five-digit amount you have to pay for can be a little daunting. Great news! There are COE renewal loan options available for you!
For 10-year COE renewals, repayment can span across seven years.
For five-year COE renewals, repayment can span across five years.