What is COE?
The term COE (Certificate of Entitlement) is used to represent the ownership rights to the owner of the vehicle and the right to use the vehicle for the following ten years.
How to Renew COE in Singapore
After the expiry of a 10 year COE time, owners of vehicles may decide to scrap their vehicles or renew the their COEs for another 10 or 5 years by paying a premium called PQP (Prevailing Quota Premium). The Prevailing Quota Premium moves with an average CEO prices in a three months window, depending on the classification categories of vehicles namely A, B, C, D & E. These figures are not constant as they vary from month to month and the figures that are updated most are published by LTA.
Commercial vehicles Vs. Private Cars
The main difference between a commercial vehicle and a private car is that a commercial vehicle is usually revalidated after every five years and once again after the end of five years, but for private cars the COEs can be renewed as many times as the owner wishes after every 10 years since they have know limited statutory lifespan. A commercial vehicle in Singapore is only allowed 20 years of statutory lifespan on the road. However, if you decide to revalidate your car for only five years, then the car will have to be scrapped after the expiry date of the COE and there would be no chances of renewal.
How much will you be required to pay?
If you wish to renew your COE for another 10 years, then you will be required to pay the full PQP. However, if you choose to renew your vehicle for another 5 years, then you will only pay 50% of the PQP. The vehicle will be scrapped immediately if you don’t renew the COE by the end of expiry date.
The LTA (Lands Transport Authority) will only allow you a grace period of 30 day after expiry date of the CEO and subject to late payment of the fee. If the CEO is not paid during this grace period, then upon expire, the vehicle will be scrapped immediately. It is also a big offence to drive the car without the road tax or insurance during this grace period.