Cars in Singapore come with a hefty price tag. If you’re looking to save on your motoring expenses, COE (Certificate of Entitlement) renewal for your existing vehicle could be a cost-effective alternative to purchasing a new car. This guide tackles the frequently asked questions about COE renewal, offering valuable insights to help you navigate this process.
Why is COE Renewal Necessary?
COE renewal becomes necessary when your existing COE expires. Without renewal, your vehicle must be deregistered, either through scrapping or exporting.
When to Renew Your COE?
Renewing your COE doesn’t require waiting until the last moment. In fact, you can initiate renewal before the current COE’s expiration, with a grace period extending up to one month afterward. Be aware that you can’t operate your vehicle until the renewal process is complete. A late renewal fee applies, varying by vehicle type.
Calculating COE Renewal Cost
The cost of COE renewal is determined by the Prevailing Quota Premium (PQP), which is the average COE premium of the past three months from the chosen renewal month. This rate relies on your COE expiry date and the renewal date you select.
Duration Options: 5 Years or 10 Years?
You have the choice to renew your COE for either five or ten years. Opting for a five-year renewal means you won’t be able to renew further; however, you only pay 50% of the PQP. Choosing a ten-year renewal allows for another renewal at the subsequent COE expiry, offering flexibility.
Ways to Renew Your COE
You can renew your COE through these options:
- **Online Renewal**: Renew via the OneMotoring website using internet banking with select banks.
- **Snail Mail Renewal**: Complete the application form and mail it to the Land Transport Authority (LTA).
- **In-person Renewal**: Visit LTA’s Customer Service Centre with your application form and PQP payment.
Considerations for COE Renewal
While COE renewal offers financial benefits, it comes with a few downsides:
- Loss of PARF and COE Rebates: Renewing your COE leads to the forfeiture of the Prevailing Additional Registration Fee (PARF) and COE rebates for your vehicle.
- Increasing Road Tax: From the tenth year onwards, road tax increases annually by 10% (capped at 50%).
Getting a COE Renewal Loan
Sgcarmart offers assistance with LTA documentation and can help you secure a 100% loan from banks to pay the PQP for your COE renewal. Our expert advice ensures a seamless process, while our services provide maximum savings and minimal hassle. We also offer complimentary pre-COE car inspections to aid your well-informed decision-making.
COE renewal offers a practical way to extend the life of your car in Singapore, provided it’s well-maintained and in good condition. By understanding the renewal process, calculating costs, and considering the implications, you can make a well-informed decision that aligns with your financial goals and vehicle preferences.
