Planning To Renew Your COE? What Is Your Prevailing Quota Premium?

clifford chow
10 May 2018
 

As your car approaches its dreaded ten-year mark, you might think of doing a COE renewal.

After all, you have a car you are already familiar with for another length of time, and you may be having the right criterion for doing that renewal.

You have determined that the car is fit for renewal because you have a...

A car in good mechanical condition… check

Body panels in decently good shape (nothing a few simple touch-ups cannot fix)… check

End-of-life residual value which is not too high, therefore not too much loss… check

But How Much Is Your COE?

In actual fact, the COE price for cars due for renewal is not the same as the ones listed for new cars, but rather what is known as a Prevailing Quota Premium (PQP). This is a moving average of COE prices within the last three months.

For instance, the PQP for the month of May 2018 is the combination of the COE prices from February to April of the same year.

Category A COEs

First Bidding

Second Bidding

February

$40,000

$36,810

March

$38,830

$38,000

April

$37,000

$38,510

PQP For The Month Of May - $38,192

 
Note that due to the implementation of the previous Carbon Emissions-Based Vehicle Scheme (CEVS), cars which have been obtained on or after February 2014’s first COE bidding exercise, work on a slightly different rule, compared to cars obtained before that date.

As a result, cars which originally fall into Category A, but have a power output above 130bhp, automatically are classified as Category B cars.

What Is The Longest Loan Repayment You Can Take?

If you are doing a renewal for 5 years, the repayment term is 5 years.
Note that the PQP will be halved.

If you are renewing for 10 years, the repayment term is 7 years.

What Do I Stand To Lose?

When you choose to renew your COE, you will lose the benefit of getting your car's PARF rebate. The annual cost of ownership is (Final PARF Rebate forfeited + Renewed COE PQP) / number of years. A 5-year COE renewed Toyota Corrolla Altis is estimated at $5,474 per year which is really an affordable way to own a car.

Is The Renewal Process Difficult?

Not at all, just fill in your details in the link below, our team will assist you along the way!


Looking to renew your COE to extend the ownership of your car?
Get the best loan arrangement for your needs today. Quick response time with friendly and knowledgeable customer support.

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Pleasantly surprised how smooth the process took. Alex is a joy to work with. I got my COE loan renewed within a week.
Tan Eu Gin
The Oneshift team is knowledgeable and was able to advise on the renewal procedure in a simple way that I can understand! Thumbs up
Evelyn Lim
Thanks for Charlie for advising me on the monthly loan breakdown amount and repayment periods. The low interest rate helps! Will recommend to friends.
James Lee