COE Renewal and PQP Explained

When your car’s 10-year COE is about to run out, you have two choices: deregister (scrap or export) the car, or renew the COE and keep driving. Renewing does not involve bidding — you pay the Prevailing Quota Premium (PQP).

What the PQP is

The PQP is the moving average of the quota premiums (QPs) from the last 3 months in which bidding exercises were held. Months with no bidding are excluded. Because it tracks recent COE prices, the PQP changes month to month. LTA publishes the PQP for each month once the second bidding exercise of the previous month is over.

For reference, the PQPs published with the October 2026 second bidding results (21 October 2026) — which apply to renewals in November 2026 — are S$129,883 for Category A and S$131,819 for Category B.

5 years or 10 years?

	10-year renewal	5-year renewal
Cost	100% of the PQP	50% of the PQP (rounded up)
Repeat?	Yes — unlimited for most cars	No — one time only
After it ends	Renew again, or deregister	Car must be deregistered
Best for	Keeping the car long term	A planned final few years

Cars have no statutory lifespan (the one exception is a tuition car registered in a company’s name, which has a 10-year statutory lifespan), so for a normal car a 10-year renewal can be done again and again. A 5-year renewal is cheaper upfront but is a dead end: once those 5 years are up, you cannot renew again and must scrap or export the car.

The hidden cost: your PARF rebate

This is an easy cost to overlook. The Preferential Additional Registration Fee (PARF) rebate — a refund of part of the car’s registration tax — is only available to cars that are deregistered within 10 years of first registration. Because you renew at the end of the 10-year COE, the car passes that 10-year mark, so renewing means the PARF rebate is forfeited (PARF eligibility also depends on the car meeting LTA’s registration and related conditions).

So the true cost of renewing is not just the PQP: it is the PQP plus the PARF rebate you give up by not scrapping. If your car still has a sizeable PARF rebate, factor that in before renewing.

Timing and late fees

Renew before your COE expires to avoid penalties.
You may renew up to 1 month after expiry, but with a late renewal fee and the vehicle deregistered (and off the road) in the meantime. Late fees range from S$50 (small cars/motorcycles) to S$250 (large cars and commercial vehicles).
If you do not renew within that 1 month, the vehicle must be disposed of immediately.

Quick decision checklist

What is this month’s PQP for my category? (100% for 10 years, 50% for 5 years.)
How much PARF rebate would I forfeit by not scrapping?
Do I want this car for more than 5 more years? If not, the one-time 5-year renewal may fit.