Should you renew your car’s COE way before, close to, or after expiry?
As of December 2018, there are more than 60,000 private cars on Singapore roads that are approaching their pivotal tenth year of life. If you plan to continue driving your car well past its tenth year, it’s time to decide exactly when is the best time to get that certificate of entitlement (COE) renewed.
SCENARIO 1: RENEW COE NEAR EXPIRY
When you renew your COE, you instantly lose your Preferential Additional Registration Fee (PARF) and COE rebates. To ease the sense of loss, most car owners renew the COE as close to the expiry date as possible.
As a guide, a typical family car may have an estimated Additional Registration Fee (ARF) of about $20,000 (see Table 1). If you choose to renew your COE now, you will be forgoing 50%, or $10,000, in PARF rebates. This amount can be substantially higher for premium cars. But your COE rebate, would be minimal —close to zero — since the COE isn’t going to last much longer.
TABLE 1: 2008 CATEGORY B CAR (ABOVE 1,600CC)
|Age||9 years 11 months 30 days|
SCENARIO 2: RENEW COE EARLY
The PARF value of your car remains till it is fully 10 years old, so that is intact even when you opt to renew your COE early, say one year before expiry. If you then decide to scrap your car before it reaches 10 years of age, you can still claim your 50% PARF rebate. You can also get back a portion (pro-rated to the amount of time remaining) of your renewed COE. Some may opt for early renewal if they are aware that the next month’s Prevailing Quota Premium (PQP) price will rise. The PQP that you must pay is based on COE prices over the past three months.
In Table 2, you can compare the PQP for January 2019 and February 2019. If your car’s COE expires in February 2019 and you opted to renew a month earlier, you would have paid $598 less for a 10-year COE. As COE prices vary from month to month, it may be helpful to check PQP on AA Singapore’s website six months to a year prior to renewing your COE. Do note that if you renew your COE early, your next COE expiry date will also be brought forward.
|RENEWAL IN JAN 2019||RENEWAL IN FEB 2019|
|PQP (for 10 years): $31,335||PQP (for 10 years): $31,933|
SCENARIO 3: RENEW COE AFTER EXPIRY
If you missed the deadline for renewal, you can still renew your COE up to a month after it has expired but you must pay the PQP of the month your COE expires. Late payment fees apply, depending on the type of vehicle for which you are renewing.
Application requests must be made at LTA’s Customer Service Centre at Sin Ming.
However, you could forfeit your eligibility for renewal if the COE has expired for more than one month.