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7 Useful Tips For Your Fuss Free COE Renewal
7 Useful Tips For Your Fuss Free COE Renewal

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You won't want to risk a misstep on your COE which might have costs you tens of thousands. To help you lighten the burden of COE renewal amongst all your other worries in life, we have curated a simple and easy-to follow-list on things you need to know to make a well-informed decision!

1. Cost of COE renewal

Good news! When renewing your COE at the end of the car's 10 year cycle, you need not bid for a COE again. Instead, you pay for something called the Prevailing Quota Premium (PQP). The cost of PQP is determined from the moving average of COE prices of the past 3 months. Meaning to say, PQP will vary every time. To get the PQP, follow the link here!

2. When do you apply?

You will have to consider both the balance of your existing COE as well as the cost of PQP. This is because the remaining balance of your existing COE will be forfeited when you pay for the PQP! Do make your choice wisely. Furthermore, any COE rebate from any lay-up period during the COE validity period will also be forfeited when you renew your COE. So make sure the PQP price you're getting is worth the amount of COE you're forfeiting!

When the COE renewal is made before the month that your COE expires, the PQP will be determined by the date you renewed your COE. The new COE will start from the 1st of the following month from the PQP month.

3. Should I renew my COE for 5 or 10 years?

For a 5 year COE, you will only pay for half of the PQP. Despite the savings, it is crucial to note that once your car is renewed for 5 years, you won't be able to renew that car again. Comparably with a 10 years renewal, you are entitled to enjoy the privilege of continual renewal of your car. Do weigh your pros and cons!

4. Getting a Loan

While most banks do not offer a car loan for COE renewal, we have found the hidden gem Maybank – offering loans up to 60% for 4-5 years, depending on the duration of the new COE period.

5. Depreciation

Before renewing your COE, there are still a few things to take note of. For COE renewal at the end of the 10 year cycle, you will lose your Preferential Additional Registration Fee (PARF) rebate in which the PARF value is determined by the Additional Registration Fee (ARF). Here's a handy chart to aid in your calculation.

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Factor to your vehicle's depreciation in this formula:

6. Wear and Tear

One vital point to reckon is whether your car is able to last for the next 5 to 10 years. With the prolonged wear and tear, an important indicator will be a car's mileage. A typical Singaporean cars would run an average of 20,000km per year. At the end of COE term, it should amount to about 200,000km. With such a high mileage, you probably need to replace the affected parts to ensure a smooth driving for the next 10 years. Head to your mechanic to find out what you need to change!

Click here for a quick valuation of your vehicle based on current market conditions.

7. How can I pay?

The application to renew the COE must be received by LTA within one month after the expiration of your current COE. The different modes of payments are:

  • A. By Internet

You can make your payment daily, from 6am to midnight. You will need an Internet Banking Account with either of the following banks:




Standard Chartered Bank


Do make sure that your payment is within the set payment limit by the bank!

  • B. By Post

You will have to make your payment at least 2 weeks before your COE expiry date. The postage will have to include both the application form and payment. It should reach the LTA before the end of the month that the PQP is applicable, and the application date will be the date which LTA receive your application.

This means that, depending on which is earlier, the date of PQP will be that of the application date or the COE expiry date.

  • C. At the LTA Customer Service Centre

Before or on the COE Expiry Date:

You can make your payment through cheque, cash or cashier's order. You can also pay by Diners Club Card or NETS if it is within the daily transaction limit set by the bank. However, if you choose to pay by cheque, the COE will only be renewed on the date of the cheque clearance.

  • D. After COE Expiry (Within 1
    month from the expiry date of the COE):

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After the COE has expired, you can only pay by cash, cashier's order or NETS. You will also have to cover for the late payment fees.

All in all, make an informed decision, and evaluate your situation to maximize your COE life value. Drive Smart!