In Singapore, the Certificate of Entitlement (COE) is a crucial component of car ownership. As of May 2025, vehicle owners face key decisions when their COE nears the 10-year expiration mark. Many drivers are uncertain about what happens next. Is another payment required? Can the COE be renewed? Here’s a clear, updated breakdown for car owners considering their options.
What Happens When Your COE Expires After 10 Years?
A COE gives you the legal right to own and operate a vehicle in Singapore for 10 years. Once that period ends, the COE must either be renewed or the vehicle deregistered. If you choose not to renew, the vehicle has to be scrapped or exported. For those who want to keep their cars beyond the 10-year mark, renewal is necessary — and yes, that means paying again.
You can renew your COE for either 5 or 10 years. However, it’s important to note that a second 5-year renewal locks your vehicle out of any future renewals, meaning it must be deregistered at the end of the renewed term. A 10-year renewal, on the other hand, allows continued renewals in the future.
Cost of COE Renewal in 2025
The cost to renew your COE depends on the Prevailing Quota Premium (PQP), which is the moving average of COE prices over the past three months. The PQP fluctuates monthly and is specific to the COE category (cars, motorcycles, goods vehicles, etc.). Below is an example table showing estimated PQP rates as of May 2025:
| COE Category | Estimated PQP (May 2025) | Renewal Term Options |
|---|---|---|
| Category A (Cars <=1600cc) | SGD 80,000 | 5 or 10 years |
| Category B (Cars >1600cc) | SGD 110,000 | 5 or 10 years |
| Category C (Goods vehicles) | SGD 50,000 | 5 or 10 years |
| Category D (Motorcycles) | SGD 12,000 | 5 or 10 years |
These figures are projections based on recent trends and may change. Vehicle owners should always check the latest PQP before committing.
Should You Renew or Deregister?
Renewing your COE makes sense if your vehicle is still in good condition and you prefer not to incur the high costs of a new car. It’s especially popular among drivers who maintain their vehicles well or own rare models. However, for older vehicles with frequent maintenance issues, deregistration might be more cost-effective in the long term.
It’s also worth noting that vehicles older than 10 years face higher road tax, which increases with age. Additionally, cars without modern emissions standards may incur penalties under the Vehicular Emissions Scheme (VES).
Things to Consider Before COE Renewal
- Roadworthiness: Has your vehicle aged well? Renewing a COE is only practical if the car is structurally sound and runs reliably.
- Cost-Benefit Analysis: Compare the COE renewal cost, increased road tax, and maintenance expenses against buying a new or used car.
- Resale Value: Cars with renewed COEs generally have lower resale value compared to newer models. Consider your future plans before renewing.
- Environmental Regulations: Older cars may fall short of emission standards, leading to higher taxes or limited access to certain zones in the future.
Conclusion
Yes, you still need to pay for COE after 10 years if you wish to keep your vehicle on the road in Singapore. As of May 2025, renewing your COE involves a substantial financial decision influenced by market trends, vehicle condition, and government policies. Whether you choose renewal or deregistration, make sure your decision aligns with both your budget and long-term transportation needs.
FAQ
Can I renew my COE multiple times?
Yes, but only if each renewal is for 10 years. If you opt for a 5-year renewal, you won’t be allowed to renew again after that period.
Is there any rebate if I deregister my car before the COE expires?
Yes. You may be eligible for a Preferential Additional Registration Fee (PARF) rebate and COE rebate, depending on how many years are left on your COE.
Can I transfer my COE to another vehicle?
No. COEs are tied to specific vehicles and cannot be transferred to another car.
What happens if I don’t renew or deregister my car after 10 years?
If you do nothing, the vehicle becomes illegal to drive and must be deregistered. Authorities may take enforcement action.
Are there financing options for COE renewal?
Yes, banks and financial institutions in Singapore offer loans specifically for COE renewal. Interest rates vary by provider.
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