Purchasing a brand new Singapore car may not be ideal for those with a lean bank account. The good news is thousands of used cars Singapore are sold every month due to the unique quota limit imposed by the Land Transport Authority. According to the LTA, 3 out of 10 cars in Singapore are more than eight years old and ready for a change of ownership.
What is the Certificate of Entitlement?
Potential Singapore car owners are required to put up a monetary bid in a uniform price auction. The winning bid receives a Certificate of Entitlement (COE) which grants the holder the legal right to own a vehicle in Singapore for a period of 10 years.
The number of COEs available to the public is regulated by the Vehicle Quota System (VQS). The new quota is announced by the LTA every 6 months. Sometimes the demand is so high that a COE can cost more than the value of the car itself.
Once the COE reaches its 10-year limit, the car owner must scrap or export the vehicle to another country, or renew the expiring COE for another 5 to 10 years.
What is the Prevailing Quota Premium?
The Prevailing Quota Premium (PQP) is the three-month moving average of the quota premium for each vehicle category.
- Category A: cars below 1,600CC and 97KW
- Category B: cars above 1,600CC or 97KW
- Category C: goods vehicles and buses
- Category D: motorcycles
- Category E: open category
Buying a Second Hand Car at COE End
Buy second hand car doesn’t have to cost you an arm and a leg. On the COE market, you’ll be able to find a road-worthy vehicle for less than $15,000. Sometimes they’re even in mint condition. So you need the best online shop to buy a second hand car.
2nd hand cars for sale that are less than 10 years old come with a scrap value. This is a tax rebate paid in cash to the owner for de-registering a car. The scrap value, also known as PARF/COE rebate, is half of the additional registration fees that the first owner paid when he bought the car.
COE Renewal Period
If you want to renew coe online for another 10-year period, you must pay the current PQP rate in full. If you want to renew an existing COE for another 5-year period, you only need to pay half of the PQP. Motorcycles and cars which do not have statutory lifespan can be renewed every 10 years with no limit.
If you have already decided to renew the current COE of your vehicle, do not wait for the expiring month. When a COE is revalidated after the COE expiry date but within the one-month grace period, you will have to pay late payment fees on top of the PQP. If the COE is not renewed on time, the vehicle will automatically be de-registered.
Late payment fees range from S$50 to S$250 depending on engine capacity.
- Cars 1000cc and below: S$50
- Cars 1001cc to 1600cc: S$100
- Cars 1601cc to 2000cc: S$150
- Cars 2001cc to 3000cc: S$200
- Cars more than 3000cc: S$250
- Business service vehicles: S$250
- Goods vehicles: S$250
- Public service vehicles: S$250
- Other vehicles: S$250
The PQP rate for the month applies at the point of COE renewal. Once successfully revalidated, the new COE will start the next day after the old COE expiry date.
AsiaCarz can help you find the best deals for COE cars in Singapore. Make an appointment today and we’ll take care of the rest!