COE, also known as the Certificate of Entitlement, is a certificate that gives you the rights to own, register and use a vehicle in Singapore. Your COE only last for ten years, so what do you do when your COE is expiring?
We will be discussing the different options you can choose from when your COE expires.
Renewing your COE
Before you renew your COE, be sure to check your car’s condition as well as the current COE price. When the COE prices are high, the cost of renewal can cost as much as a new car. Besides that, please be aware that you have to pay the Prevailing Quota Premium (PQP) upon renewal. If you have decided to renew your COE, there are options you can choose to take.
1. Renew before 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.
However, it is 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 it 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.
2. Renew after COE expires
If you do not wish for your unused portion of the previous COE to be forfeited, you may choose to renew after it expires.
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.
Scrap your car when COE is expiring
If you find no point in renewing a 10-year-old car, you can choose to scrap your car. In addition to getting a brand new car, you can also receive rebates! If your car is using its original COE and is under 10 years old, it’s considered a Preferential Additional Registration Fee (PARF) vehicle. This means that if you choose to scrap your car when your original COE expires, you’ll receive the scrap value of your vehicle. To find out more, you may check out this article.