COE renewal loan

COE Renewal After 5, 10 Years: Is It Worth It?

Singapore, being one of the busiest countries in the world, is also amongst the most expensive areas to live in. This is evident especially with how most Singaporeans cannot afford the luxury of just obtaining a car. And assuming you were able to purchase one, it’s been revealed that while most car owners anticipate their next purchase after a long time with their most-loved vehicle, they refuse to do so. 

This is due to the rising costs of its price, taxes and other contributing factors. This leaves many Singaporeans to consider paying for the Certificate of Entitlement or CEO renewal to avoid their vehicle into being deregistered. However, would it be really worth it? We’ll trim down a list of ways you can do for wiser financial action.

Options to Consider Once Your Car Has Been Around for Over Five or Ten Years

 1. Get rid of the old car and buy a new one

With car prices ranging from at least $100,000 to $150,000 with brand-new and even middle-of-the-market vehicles, it will definitely cost shoppers double than what they will cash out upon paying the Prevailing Quota Premium (PQP) for the COE renewal. Despite the amount of money one is likely to spend on this purchase, this is still an idea most Singaporeans would take. 

To make this happen, you must deregister your car to finally dispose it. Firstly, you will be required to do this via SingPass portal online then bring your vehicle to an LTA-authorised scrapyard. We’d encourage you to reach to an accredited dealer to assist you with it.

Moreover, note that these will all boil down to how much you are willing to pay on a newer vehicle. Thus, if you’re hesitant in giving away a huge amount of money for it, you can still try buying a younger used car. This option guarantees you to get a vehicle with a much affordable price while being still relatively new.

Car loan in Singapore (2021):

Bank Interest rates Min loan amount
Hong Leong Finance Car Loan 2.48% interest rate $10,000
Maybank Car Loan 2.78% interest rate $10,000
OCBC Car Loan 2.28% interest rate $15,000
Standard Chartered Auto Financing 2.48% interest rate $10,000
UOB Car loan 2.68% interest rate $10,000

 

2. Try renting or leasing a car

This option may not be as common but it’s assured to save you the hassle in maintaining an owned car. Should you not need a car for everyday work, and just for occasional activities or leisure time with the family, consider renting a car instead.

Nowadays, you can easily rent a car ]from any car rental agency. The good thing is, you can also rent on a monthly or a quarterly basis if you need a ride for the long term while preferring not to buy one.

Renting or leasing would set just you back by at least $1,600 to $1,800 a month. This is due to the cost which already includes car insurance, road tax and even full vehicle maintenance. Rest assured it will be fun to buying a new car model from time to time swiftly.

 

3. Renewing your COE for 5 years or 10 years

If you wish to keep the same vehicle registered, this is the option to make. Remember that you need COE renewal before it expires or at least within a month after its due date, however with a late renewal fee. 

For COE renewal, pay the Prevailing Quota Premium (PQP) for your car category. This is the moving average of the Quota Premium (QP) in the last three months and would normally vary monthly depending on the QP in the bidding exercises conducted in the last said months. Months in which no bidding was conducted are excluded from the calculation nonetheless.

Note that you can renew your COE for a period of 5 or 10 years, depending on the category of your vehicle. These fall into five kinds. 

Category A Car up to 1,600cc & 97kW (130bhp)
Category B Car above 1,600cc or 97kW (130bhp)   
Category C Goods vehicle and bus
Category D Motorcycle
Category E Open – all except motorcycles

For those renewing their COE for five years, you need to pay half of the Prevailing Quota Premium (PQP). With those under categories A, B and D, you can renew your COE for five years only once. Should the five-year renewal duration is finished, you can no longer have it renewed. You will be required to deregister the car as well.

For vehicles under category C, on the other hand, you can still continue to renew it after the first renewal period. However, the subsequent renewals can only be for 5–year periods. Once your vehicle reaches the end of its statutory lifespan. Same as the other, you can no longer have it renewed and will be required to deregister the car also.

Meanwhile, to renew your COE for ten years, owners must pay the Prevailing Quota Premium for the vehicle category. For vehicles with no statutory lifespan (i.e. Categories A, B and D), there is no limit to how many times you can renew your COE in 10-year periods. See table below for a guide:

Vehicle Statutory lifespan
Car No statutory lifespan (except it is 10 years for tuition cars registered in the name of companies)
Omnibus 17 years
Excursion Bus, Private Bus, School Bus, Private Hire Bus 20 years
Goods Vehicle 20 years
Taxi 8 years
Motorcycle
  • For first Registration Date before 1 July 2003: Statutory lifespan expires on 30 June 2028
  • First Registration Date from 1 July 2003, or motorcycle is under Vintage (Restricted)/ Revised Vintage/ Classic Vehicle Scheme: No statutory lifespan

If you’re finally decisive with your future purchases, you can take up a COE renewal loan / COE renewal loans via a bank loan, in-house loan, or licensed moneylenders. You can weigh your COE renewal loan options on Loan Advisor for your COE renewal loan or any other types of loans.  You can check their guides, site reviews and even those from customers to check which deal would cater best to your financial worries.

 

So, Does Getting a COE Renewal After Five or Ten Years Really Worth It?

Assuming you have an expensive model, like Mercedes or Range Rovers, your COE renewal will only be 20 per cent to 30 per cent of its total price. While the COE is a lower portion, it can be noted to be more valuable for a COE extension.

For mass-market brands, meanwhile, the COE cost will likely be over half the total price. In this case, you may want to weigh whether your car is able to operate well for over a decade. Thus, should you have been able to take care of your used car, it’s guaranteed you will do well upon extending the COE given that their reputation for lasting is outstanding.

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