What is PQP? Latest PQP COE Rates in Singapore
November 13, 2025What is PQP? Latest PQP COE Rates in Singapore
November 13, 2025
In Singapore, owning a vehicle isn’t just about buying the car — it’s about securing the right to use it through the Certificate of Entitlement (COE). Each COE is valid for 10 years, after which the vehicle must either be deregistered or the COE renewed (extended).
If your vehicle is still in good condition and you’re not ready to scrap it, renewing your COE can be a smart and cost-effective choice — especially given today’s high car prices. This guide breaks down how to extend your COE step by step, and answers key questions to help you make the best decision.
Step-by-Step Guide to Extend Your COE
Step 1: Check When Your COE Expires
You can’t extend your COE indefinitely, so timing is crucial. Your COE expiry date is printed on your vehicle log card or can be checked via:
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- OneMotoring Portal
- Singpass App > My Vehicles
- Or by contacting Land Transport Authority (LTA) or your car dealer
Pro Tip: Mark your COE expiry on your calendar. You get a 1-month grace period after expiry — but if you miss that, your vehicle must be deregistered.
Step 2: Decide Between 5-Year or 10-Year Renewal
You have two options:
5-Year Renewal
- Pay 50% of PQP
- Non-renewable — must deregister after 5 years
- Ideal for older vehicles or short-term plans
10-Year Renewal
- Pay 100% of PQP
- Renewable again when it expires
- Better for long-term ownership
Note: You cannot convert a 5-year renewal into a 10-year one later.
Step 3: Find Out the Current PQP for Your Vehicle Category
The amount you need to pay to renew your COE is called the **Prevailing Quota Premium (PQP)**.
The PQP is based on the moving average of recent COE bidding prices and is updated monthly.
The PQP differs depending on your vehicle’s COE category, so it is important to check the correct category before deciding whether to renew.
To find out the latest PQP:
- Check the latest PQP information on our website
- Verify the official PQP rate through LTA / OneMotoring
- Refer to your vehicle details through Singpass or the OneMotoring portal
Tip: If COE prices are trending down, you may consider waiting before renewing. If prices are rising, renewing earlier may help you lock in the current PQP before it increases.
Step 4: Decide When to Renew – Early or On-Time?
You can choose to renew:
Before expiry
-
- Lock in current PQP
- Forfeit remaining COE time
- Useful if PQP is expected to increase
On expiry month
-
- Maximise use of current COE
- Risk of higher PQP if prices rise
During grace period (1 month after expiry)
-
- Still allowed
- Late road tax and admin fees apply
- You cannot use the vehicle during this time
Step 5: Choose How to Pay Your COE Renewal (PQP)
Step 5: Choose How to Pay Your COE Renewal (PQP)
There are two ways to settle the Prevailing Quota Premium (PQP). The right choice depends on how you'd prefer to manage your cash.
Option 1: Pay the Full PQP in Cash
To pay the full amount upfront:
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- Go to OneMotoring → COE Renewal
- Log in with Singpass
- Select your vehicle and renewal term (5 or 10 years)
- Pay via eNETS, GIRO, or bank transfer
This clears the PQP in a single payment but requires the full sum upfront.
Option 2: Renew with a COE Renewal Loan
A COE renewal loan spreads the PQP into fixed monthly instalments instead of a single upfront payment, helping you preserve cash flow while you continue using your vehicle.
-
- Finance up to 100% of the PQP
- Tenures of up to 7 years
- Rates are fixed at our prevailing promotional rate
VM AutoFinance
VM AutoFinance provides COE renewal financing in Singapore and works with a panel network of over 400 motor dealers.
Why VM AutoFinance? A specialist team that handles your COE renewal and financing in one seamless process — competitive rates, no hassle.
Financing covers up to 100% of the PQP, with tenures of up to 7 years. Applications are processed directly, without bank queues.
Step 6: Renew Road Tax and Update Insurance
Once COE is renewed:
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- You must renew road tax
- Vehicle must undergo regular inspections (annually for cars over 10 years)
- Inform your insurance provider that the COE has been renewed
Note: Some insurers may limit coverage on older cars or increase premiums due to higher risk.
Step 7: Print and Keep Documentation
After a successful COE renewal:
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- You will receive a confirmation notice
- Keep a copy of your updated log card or COE renewal letter
- Ensure your insurance and road tax are valid before driving
That’s it — your vehicle is now good to go for another 5 or 10 years!
🚗 What Happens After COE Renewal?
Here’s what changes once your vehicle is over 10 years old:
| Requirement | What to Expect |
|---|---|
| Inspection | Annual inspection required |
| Road Tax | Increases by 10% yearly, max 50% |
| Insurance | May cost more or offer reduced coverage |
| Scrap Value | PARF rebate is forfeited after renewal |
You only retain your COE rebate if you deregister the vehicle before the renewed COE ends.
❓FAQs – COE Renewal in Singapore
You can sell a car with a renewed COE, but its value depends on:
- Remaining COE duration
- Vehicle condition
- Mileage and demand for that model
Some buyers prefer cars with a fresh 10-year COE for peace of mind.
It depends on:
- Car’s condition
- Upcoming repair costs
- PQP amount
- Alternatives in the market
If the car is mechanically sound and the PQP is manageable, renewal may be more economical than buying a new vehicle.
✅ Final Thoughts
Extending your COE is a big decision — one that comes with long-term costs and responsibilities. Done correctly, it can save you a lot of money and extend the life of a vehicle you trust. Done without planning, it can become a financial burden.
Before renewing, make sure to:
- Track PQP prices monthly
- Inspect your vehicle thoroughly
- Weigh 5-year vs 10-year renewal
- Review insurance and financing options
- Understand the trade-offs, including loss of PARF
By following the step-by-step process above, you’ll be well-prepared to extend your COE with confidence and clarity.
Get in Touch Today
Whether you're renewing for 5 or 10 years, VM AutoFinance can tailor can tailor a loan package that fits your needs and budget.
Take the stress out of COE renewal. Let ValueMax help you drive worry-free for the next 5 or 10 years.