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Certificate of Entitlement (COE) renewal. A handy guide



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As a Certificate of Entitlement (COE) is only valid for 10 years, it has to be renewed before it expires, otherwise the vehicle will have to be de-registered.

But before we get into the nitty gritty about how to renew your COE, we ask the question:

Should you renew your COE?

The question of whether to renew your COE depends on many factors which cover more than just the upfront cost of the car.

For example, a report by consumer researchers, ValueChampion, showed that you'd spend about S$1,000 more on average in road tax over the course of five years on a 10-year-old car than on a new car. Also, keep in mind potentially higher maintenance costs on an older car. And if you keep your car past 10 years of age, you will sacrifice your eligibility for a PARF rebate that would help to recoup the cost of the Additional Registration Fee (ARF) you paid when you registered your old car. If your car is about to turn 10, you'll be eligible for a PARF rebate of 50% of the ARF you paid.

For example, on a 2007 Toyota Corolla Altis 1.6A, which tends to have an ARF of about S$16,500 based on a sample of used cars listed for sale on SGCarMart. You could receive a PARF rebate of about S$8,250 if you decided to scrap your old Toyota. But you would lose that amount if you kept it.

On the other hand you could make significant savings on car insurance for your older vehicle. The ValueChampion study showed that insurers charge around $2,000 less for premiums on older cars. Find out more about options for insuring an older car here.

For more insight into the cost of buying a new or used car as opposed to renewing your COE, take a look at this chart.

Cost Over 5 Years of Getting a New Car vs. Renewing COE on an Old Car

Brand New Car

3-Year-Old Used Car

Renew 10-Year COE

Renew 5-Year COE

COE + Car Purchase

S$105,000

S$80,000

S$50,000

S$25,000

Car Loan Interest

S$6,000

S$4,800

S$0

S$0

Road Tax over 5 Years

S$3,710

S$3,710

S$4,830

S$4,830

Insurance Premium over 5 Years

S$8,756

S$8,580

S$6,612

S$6,612

Maintenance Cost*

S$3,105

S$3,105

S$4,658

S$4,658

PARF Rebate**

-S$17,750

-$15,000

S$0

S$0

COE Rebate***

S$0

S$0

S$0

S$0

Total

S$126,571

S$100,195

S$66,099

S$41,099


If you're looking to spend as little as possible to stay on the road, opting to renew your COE for only five years on your old car will certainly give you an opportunity to save. Renewing your COE might be a good idea too if your budget won't accommodate a large layout of cash in a down payment before your COE expires. , Similarly, if you're already paying monthly instalments for a home loan you may prefer not to add the burden of monthly car loan repayments.

So if you’ve decided to renew your COE, what next?

When to renew

COE renewals do not have to go through the bidding process again. Renewals can be made by paying the Prevailing Quota Premium (PQP), which is the moving average of the COE quota premium for the respective vehicle category in the preceding three months.

And you can choose to renew the COE anytime up to the expiry date itself.

For renewals made in the same month before the expiry, the new COE period will commence the day after the previous COE expires.

The new COE period for early renewals made prior to the month of expiry begins on the first day of the following month after you renew the COE. The unused portion of the previous COE will be forfeited.

That’s why most prefer to renew their COEs very close to the expiry date, or even on the day itself so they minimise the loss of this rebate.

But at the same time it’s a good idea to monitor the PQP in the months leading up to your COE expiry. If the PQP is low compared to the preceding months, or if you expect the PQP to rise, it may be worthwhile to renew early. The savings from the lower PQP may outweigh the value of the unused portion of the previous COE that you are forfeiting.

Late renewals are allowed up to within one month of the expiry date, subject to a late renewal fee ranging from $50-$250, depending on the vehicle type.

Five- and 10-year renewals

COEs can be renewed for a period of five or 10 years, depending on the vehicle category and the statutory lifespan.

Vehicles that have reached the end of their statutory lifespan are ineligible for COE renewal.

  • Car- No statutory lifespan, except for tuition cars registered in the name of companies with a statutory lifespan of 10 years
  • Motorcycle- No statutory lifespan
  • Omnibus- 17 years
  • Excursion Bus, Private Bus, Private Hire Bus, School Bus- 20 years
  • Goods Vehicle- 20 years
  • Taxi- 8 years

If renewing for five years, you pay 50% of the PQP.

For vehicles in Category A (16cc and below), B (16cc and above) and D (motorcycles), the five-year renewal can only be made once. When the five-year period is up, the vehicle will have to be de-registered.

Vehicles in Category C (goods vehicles and buses) can continue to be renewed every subsequent five years after the first five-year renewal. However, once they reach the end of their statutory lifespan, the COE can no longer be renewed and the vehicle will have to be de-registered.

For 10-year renewals, you pay the full PQP and there is no limit to the number of renewals for vehicles with no statutory lifespan. 

How do I renew my car’s COE?

  • By Internet

You can renew your COE via the Internet daily from 6am to midnight. You’ll need an Internet Banking Account with any of the following banks:

  • Citibank
  • DBS/POSB
  • OCBC/Plus!
  • Standard Chartered Bank
  • UOB

Make sure there are enough funds in your bank account. And the payment amount should be set within your daily Payment Limit. You can adjust this amount via your Internet Banking account.

  • By Post

If you are renewing your COE by post, you’ll have to do so at least 2 weeks before your expiry date. Your post should include a completed application form and payment.

Your post should also reach LTA before the end of the month that the PQP is applicable.

  • At the LTA Customer Service Centre

For those paying on or before COE expiry, you can choose to pay by cheque, cash, or cashier’s order. You may also pay the PQP by Diners Club Card or NETS, provided the amount is within the daily transaction limit set by your bank.

If you do pay by cheque, note that your COE will only be renewed upon the clearance of your cheque. If your cheque does not clear, the renewal application will be cancelled, and a S$30 (before GST) administrative fee will be imposed for the cancellation of the application

For renewal after COE expiry (within one month after the expiry date), only cash, cashier’s order or NETS payment will be allowed. You will also need to settle the late payment fee.

Wherever you go, whatever you do, it’s vital to have good Motor insurance.
Check out Budget Direct Insurance for your best deal

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