Whether it’s a used car or brand new car, there’ll come a time where you’ll ask “Eh, is my COE expiring already or not?” Since COE only lasts for ten years, what do you do when your COE is expiring? We’ll discuss the two different routes you can take when your COE expires. Will you renew your COE or scrap your car and get another?
Read more: COE for dummies: an all-inclusive guide
Before renewing your COE, first look at the condition of your car and current COE prices. When you renew COE, you have to pay the Prevailing Quota Premium (PQP), which is the moving average of the COE price for that particular vehicle for the last three months prior to renewal.
This means that when COE prices are high, the cost of renewal can be as much as the price of a new car.
Even then, if you decide to renew your COE, there are two paths you can take.
1. Renew before your COE expires
Your new COE period starts from the 1st day of the month after you renew your COE. So, you’ll forfeit any unused portion of your previous COE.
So, for example, if your COE is expiring on August 7, 2021 and you plan to renew in July 2021, you’d first find out the PQP for that month after the 2nd bidding exercise of June 2021 ends. To find out the latest COE prices, you can check out this article, which is updated with new COE prices.
You can then renew your COE using the July 2021 PQP on the Friday following the 2nd bidding exercise of June 2021.
Your new COE would then start on August 1, 2021. And, you’d end up forfeiting Aug 1 – Aug 7 of your previous COE. This also includes any COE rebate your vehicle may have enjoyed from a previous lay-up period.
2. Renew after COE expires
Your next option would be to wait for your COE to expire before renewing, meaning you won’t forfeit any part of your previous COE.
So, if your COE expires on August 7, 2021, you find out the PQP for August 2021 after the 2nd bidding exercise ends in July 2021. You’d then renew your COE using the August 2021 PQP on the Friday immediately following the 2nd bidding exercise of July 2021.
But again, renewing your COE for a car that’s already 10 years old and paying the renewal fee, which can be as expensive as getting a new car, is not always what people want to do. Instead, you can choose to scrap your car.
Scrap your car
If your car is using its original COE and is under 10 years old, it’s considered a PARF vehicle. PARF is an acronym for Preferential Additional Registration Fee, and having this status makes your vehicle eligible to claim a PARF rebate. This means that if you choose to scrap your car when your original COE expires, you’ll receive the scrap value of your vehicle.
However, once you renew your COE, you forfeit this right.
For many owners, claiming a PARF rebate can actually be used to offset the cost of buying another car. So, if your COE is expiring and you’ve decided to scrap your car, CARRO is here to help you get another that works for you.
We make the buying process easy for you. CARRO will handle all the necessary paperwork, and all you have to do is find a car that you like on our website, and we’ll do the rest. Plus, you can drive off worry-free knowing all our cars come with CARRO Assure +, our comprehensive warranty.
So, choose the easier way to buy. Choose CARRO!