Guide to COE renewal in Singapore

A Certificate of Entitlement (COE) is a permit that allows you to own and use a vehicle for 10 years. It’s obtained through a bidding system, where prices fluctuate based on demand.

What is COE renewal?

In Singapore, every car comes with a Certificate of Entitlement (COE) that’s valid for 10 years. Once it expires, you must either renew it or deregister your car. Renewing the COE means paying the Prevailing Quota Premium (PQP), which allows you to keep using your car for another 5 or 10 years. Also, if you’re new to COE and the bidding process, you can read our COE guide here.

How COE renewal works?

Unlike buying a new COE through bidding, renewal is based on the PQP - the average of COE prices from the last three months. This means you don’t need to join the bidding exercise again. You can choose between:

• 5-year renewal – Pay half the PQP, but you cannot renew again after 5 years. You must deregister the car when it expires.
• 10-year renewal – Pay the full PQP, and you can continue renewing every 10 years.

When should you renew your COE?

• Up to 1 month before your COE expiry (early renewals use the current month’s PQP).
• After expiry, you have a 1-month grace period to renew, but a late fee applies.
• If you don’t renew after the grace period, your car must be deregistered.

You can renew your COE anytime before it expires. Many owners wait until the final few months, as PQP rates can fluctuate. If your COE expires and you don’t renew, you must deregister your car immediately. Tip: If you don’t want to deal with renewals, you can also consider buying a new car from Carro.

COE renewal vs buying a new car

When your COE is expiring, the big question is whether to renew it or buy a brand-new car. Both options have their benefits and trade-offs: Upfront cost

• Renewing your COE is much cheaper since you’re only paying the Prevailing Quota Premium (PQP).
• Buying a new car requires a large outlay - including COE, ARF, and other taxes.

Familiarity vs new experience

• Renewal lets you keep driving the same car you’re already comfortable with.
• A new car gives you the latest design, updated tech, and new safety features.

Flexibility

• COE renewal gives you a choice between 5 or 10 years, which is handy if you don’t plan to keep the car long-term.
• A new car comes with a full 10-year COE, offering more stability if you want to commit.

Resale value and rebates

• Renewed COE cars don’t qualify for the PARF rebate and usually depreciate faster.
• New cars are eligible for PARF rebate when deregistered, plus they tend to hold resale value better.

Maintenance and running costs

• An older car under renewed COE may need more frequent repairs and higher servicing costs.
• A new car will usually have lower maintenance costs, warranty coverage, and better fuel efficiency.

Verdict If your car is still in good condition and you want to avoid the high upfront cost of buying new, COE renewal makes sense. But if repair bills are mounting and you’d prefer the peace of mind of new features and warranty coverage, upgrading to a new car may be the smarter move.

How to renew your COE

1. Check PQP amount (LTA website publishes rates monthly).
2. Decide renewal period (5 or 10 years).
3. Arrange financing if you’re taking a COE renewal loan.
4. Make payment to LTA through:
   • Online via LTA e-services
   • AXS stations
   • GIRO deduction (if arranged)
5. Confirm renewal - once paid, your car is legally renewed.

Alternatives if you don’t want to renew

• Deregister and sell your car.
• Export it overseas.
• Scrap it for rebates.

To renew or not to renew your COE?

Renewing your COE is a practical option if you want to keep your current car and avoid the high cost of a new one. However, consider the trade-offs, especially in terms of rebates and maintenance. Whether you choose to renew or upgrade, weigh your budget, car condition, and long-term plans carefully.

FAQs on COE renewal

1. Can I renew COE more than once?

Yes, but only if you choose a 10-year renewal. A 5-year renewal cannot be renewed again.

2. How is the PQP calculated?

 It’s the average of the past 3 months’ COE bidding prices in your category.

3. Can I pay for renewal with a loan?

 Yes, banks and finance companies offer COE renewal loans for both 5 and 10 years.

4. What happens if I don’t renew?

Your car must be deregistered after the grace period. You can then scrap or export it.

5. Is it worth renewing COE?

It depends on your car’s condition, maintenance cost, and whether you’d rather upgrade to a newer car. If you’re ready to change, check out Carro’s latest new cars or buy a used car with Carro.