Is it advisable to renew COE?

[Unique99]

Is it advisable to renew COE?
It take the 3 month average of the last 3 months COE right?
If I intend to scrap at the 12th year, do I get back the porated renewed COE amount?
Any one?

 

[lattesurf]

Yes pay the average of the last 6 bids (ie last 3 months) for your category, it is known as PQP (Prevailing Quota Premium). Can check the current PQP for each month on onemotoring website.

COE renewal nowadays is very subjective. Example if you have a 2L car, renewing now might cost you about $45k for 10 years, as compared to paying $120k for a brand new 2L car. You also lose the min PARF when you renew COE, so factor in the min PARF to the PQP as well. Might end up paying $60k instead of $120k brand new, provided the car is good condition and still very much driveable.

When you scrap on 12th year, you get back the prorated unused COE. About ~80% of what you paid for the PQP.

 

[aaur4man]

best to scrap and buy a 2nd hand

 

[Unique99]

Yes pay the average of the last 6 bids (ie last 3 months) for your category, it is known as PQP (Prevailing Quota Premium). Can check the current PQP for each month on onemotoring website.

COE renewal nowadays is very subjective. Example if you have a 2L car, renewing now might cost you about $45k for 10 years, as compared to paying $120k for a brand new 2L car. You also lose the min PARF when you renew COE, so factor in the min PARF to the PQP as well. Might end up paying $60k instead of $120k brand new, provided the car is good condition and still very much driveable.

When you scrap on 12th year, you get back the prorated unused COE. About ~80% of what you paid for the PQP.

hey thanks..
does it mean if i scrap on the 11th year (eg), i get back 90%...
and i i scrap on the 10.5 th year, i get back 95%?

 

[lattesurf]

hey thanks..
does it mean if i scrap on the 11th year (eg), i get back 90%...
and i i scrap on the 10.5 th year, i get back 95%?

Yes.

This is assuming you renew your COE a few days just before the COE expires, so that the age of the car runs almost together with the COE. Cos when you renew COE, any unused COE prior to renewal will be voided and reset with the new 10 year COE.

Say just before car turns 10 year old you go renew, means you can drive until the car is about 20 years old. Scrap on 11th year, get back 90% of PQP. Scrap 12th year, get back 80% of PQP.

But if 9year old you go renew for 10 years, the max you can drive is upto the car's age of 19 years. So if scrap on 11th year, you get back 80% PQP since the new COE starts when the car is 9 year old.

Oh yes, you can also opt for 5 year COE renewal as well. Pay 50% of the prevailing PQP, but once 5 years is up, cannot renew anymore and must scrap.

 

[darkmatt]

Yes.

This is assuming you renew your COE a few days just before the COE expires, so that the age of the car runs almost together with the COE. Cos when you renew COE, any unused COE prior to renewal will be voided and reset with the new 10 year COE.

Say just before car turns 10 year old you go renew, means you can drive until the car is about 20 years old. Scrap on 11th year, get back 90% of PQP. Scrap 12th year, get back 80% of PQP.

But if 9year old you go renew for 10 years, the max you can drive is upto the car's age of 19 years. So if scrap on 11th year, you get back 80% PQP since the new COE starts when the car is 9 year old.

Oh yes, you can also opt for 5 year COE renewal as well. Pay 50% of the prevailing PQP, but once 5 years is up, cannot renew anymore and must scrap.

i dont understand the 5 year COE then MUST scrap logic

 

[lattesurf]

i dont understand the 5 year COE then MUST scrap logic

There's no logic to it, it's an LTA ruling.

 

[s7460597]

Yes pay the average of the last 6 bids (ie last 3 months) for your category, it is known as PQP (Prevailing Quota Premium). Can check the current PQP for each month on onemotoring website.

COE renewal nowadays is very subjective. Example if you have a 2L car, renewing now might cost you about $45k for 10 years, as compared to paying $120k for a brand new 2L car. You also lose the min PARF when you renew COE, so factor in the min PARF to the PQP as well. Might end up paying $60k instead of $120k brand new, provided the car is good condition and still very much driveable.

When you scrap on 12th year, you get back the prorated unused COE. About ~80% of what you paid for the PQP.

The road tax increased by 10% per year. Therefore for year 11, the road tax is 110% of normal road tax and goes up to maximum of 150%.

 

[nf0rc3r]

i dont understand the 5 year COE then MUST scrap logic

to force u to extend 10 years lor. No point extending 5 years when u can extend 10 years and still get back same amt when u do decide to scrape at 5 years.

Illusion of decision, our govt's best policy.

 

[lattesurf]

The road tax increased by 10% per year. Therefore for year 11, the road tax is 110% of normal road tax and goes up to maximum of 150%.

Quite subjective loh. If a person likes the car alot, and it's very reliable, it might be a better option to renew due to the high COE prices now.

Take for example, renew $50k COE for an old 2000 Camry and $140k for a new 2010 Camry.

Spend $60k (include loss of min PARF) for 10 years, $6k/year depreciation. Typical 2L car road tax about $1.2k, even if at 150%, also just $600 more per year.

Or buy new 2L Camry at $140k, average depreciation also at least $12k/year.

Old Camry for less than $7k/year or new Camry for $12k/year? 40% cheaper annually.

Just an example that my friend's dad took by renewing his CAT B Camry. So upto to individual loh.

 

[darkmatt]

to force u to extend 10 years lor. No point extending 5 years when u can extend 10 years and still get back same amt when u do decide to scrape at 5 years.

Illusion of decision, our govt's best policy.

thats dumb.. really dumb

 

[tmfwy]

Its not dumb. You have to understand the logic ( or rather no logic ) of th COE Renewal Policy

When its time to renew COE, you cannot take a loan for it. It has to be paid via Nets / Cashier's Order / Cheque.

So not all people will have the hard cash, to pay $50K for a COE. Henceforth, the 5 year COE thing.. It was very useful during the days of when COE was around $100K for a 1.6L car..

You might be able to take up a loan for the COE, by assigning your car as collateral and taking up a fresh loan for your own COE Car.

 

[aaur4man]

imagine those renew early 2009.................5 years......

 

[darkmatt]

Its not dumb. You have to understand the logic ( or rather no logic ) of th COE Renewal Policy

When its time to renew COE, you cannot take a loan for it. It has to be paid via Nets / Cashier's Order / Cheque.

So not all people will have the hard cash, to pay $50K for a COE. Henceforth, the 5 year COE thing.. It was very useful during the days of when COE was around $100K for a 1.6L car..

You might be able to take up a loan for the COE, by assigning your car as collateral and taking up a fresh loan for your own COE Car.

but now, i doubt u can take COE loan. and if u wanna renew in 5 year batches just because your financial abilities allow u to sustain 5 years, but must scrap. Thats what i dont understand.

 

[rango]

if time was up for my ride i would renew.......but 40k max i would pay for 10 years...

 

[darkmatt]

if time was up for my ride i would renew.......but 40k max i would pay for 10 years...

i wish. but mine is at least 60k for 10 years. lol

 

[burboy]

haha better for people who got $ to drive, traffic becomes smoother.

 

[rango]

i wish. but mine is at least 60k for 10 years. lol

not worth it scrap and buy a 5 or 6 year old car...better value for money...then hopefully in a few years time when its due for scrap coe would have dropped to a more sane level and you can renew...

 

[darkmatt]

not worth it scrap and buy a 5 or 6 year old car...better value for money...then hopefully in a few years time when its due for scrap coe would have dropped to a more sane level and you can renew...

my car is 1994cc. but COE expires in 2019. hope it drops by then

 

[nerdyfrog]

to force u to extend 10 years lor. No point extending 5 years when u can extend 10 years and still get back same amt when u do decide to scrape at 5 years.

Illusion of decision, our govt's best policy.

The reason behind the 5 year ruling is to protect road users on the road.

The govt wants people to take ownership and maintain their vehicle. So if people renew for 10 years, they will put effort in maintaining their vehicle.

They think that when people just renew for 5 years, they will just let the car rot.

No policies can please everyone. People that dun understand the rationale behind the policies will not appreciate it.