Renew COE or buy new car: the scrap maths before you decide
Renew COE or buy new car? A 10-year renewal costs 100% of the PQP and a 5-year one costs 50%, while scrapping before the 10th anniversary still returns government money. Neither wins by rule: compare what you pay, what you give up and what comes back.
- renew 10 years: 100% of PQP
- renew 5 years: 50% of PQP, once
- nil PARF after 10 years
By Carscrap TeamFigures checked against primary sourcesUpdated
- Renew 10 years 100% of PQP - $100,000
- Renew 5 years 50% of PQP - $50,000
The short answer
Is it better to renew COE or buy a new car
Renew COE or buy a new car: neither is cheaper by rule. Renewing trades the PARF rebate you would get by deregistering before the 10-year anniversary for a PQP paid now; buying adds a new COE and fresh depreciation. Decide on four lines: PQP, PARF forfeited, repairs and road tax surcharge ahead, and replacement cost.
The three real options at year 10
- 10-year COE renewal at the full Prevailing Quota Premium (PQP).
- 5-year COE renewal at half the PQP, then the car must be deregistered.
- Deregistration (scrap or export) before the anniversary, then a replacement.
Some low-mileage owners stop owning a car and use ride-hailing instead; no primary source publishes that cost, so it is not compared here. Whether to renew COE or buy new car, the other Singapore vehicle exit guides cover each route.
Buy a new car or renew COE: the ledger
What each choice costs at the 10-year mark
One hypothetical car runs through all three options: PQP $100,000, net Additional Registration Fee (ARF) $40,000, COE from before the 2nd February 2023 bidding.[1, 2] GOV lines are rebates, BUYER lines are body value / export value, and deductions come from your pocket.
- PQP paid (100%) - $100,000
- PARF rebate forfeited
- Road tax surcharge rises yearly
- PQP paid (50%) - $50,000
- PARF rebate forfeited
- Rebate if stopped early ask OneMotoring
- PARF, 50% of net ARF GOV $20,000
- COE rebate at expiry GOV near nil
- Body or export value BUYER ask
- Loan, towing, fees ask
Money paid or returned at year 10, hypothetical car
Compare net proceeds, not headline quotes.
Opportunity cost
The PARF rebate you give up when you renew
A renewed COE carries no PARF rebate on later deregistration, because PARF is paid only before 10 years. Renewing gives up the PARF you could claim by leaving before the anniversary: 50% of net ARF for a car with a COE from before the 2nd February 2023 bidding.
The exact-date risk
One day past the 10th anniversary, PARF is nil.[2] Check the registration date on OneMotoring, and see PARF rebate by cohort and age for every band.
The Budget 2026 PARF schedule cut changes the replacement
COEs from the 2nd February 2026 bidding earn 30% falling to 5%, capped at $30,000.[3] Your old car keeps its schedule; the new one will return far less later.
LTA renewal rules
Can I renew my COE for 5 or 10 years in Singapore
Yes. A 10-year renewal costs 100% of the PQP and can repeat until the statutory lifespan. A 5-year renewal costs 50% of the PQP, and for Category A, B and D it is allowed only once, after which the car must be deregistered.
Vehicle category exceptions
Category C goods vehicles may keep renewing in 5-year periods.[1] A car first registered on a Category E COE renews under its own Category A to D PQP. See how COE renewal and PQP work.
-
Renew 10 years
100% of PQP; repeatable until statutory lifespan. -
Renew 5 years (Cat A, B, D)
50% of PQP; once only, then deregister. -
Renew 5 years (Cat C)
Further 5-year periods allowed.
Evidence E12
How a COE rebate is worked out if you stop early (E12)
The rebate runs on the premium you paid
The COE rebate is the Quota Premium (QP), or PQP for a renewed COE, multiplied by unused months and divided by 120. LTA's own example: $16,897 x 29.1 / 120 = $4,097.[2, 5]
Limitation: LTA's formula names the 10-year PQP and its page does not work a 5-year renewal, so enquire on OneMotoring. The rebate is paid only after deregistration and proper disposal.
- Renew for 10 years at a hypothetical PQP of $100,000 and stop after 3 years: $70,000 back (hypothetical, per LTA formula).
- At expiry unused months are zero, so the rebate is too.
COE rebate on a renewed COE, by unused months
Timing
Will COE prices drop before your renewal date
Nobody can promise that, and no forecast is given here. PQP is the moving average of Quota Premiums from the last 3 months with bidding, so it follows COE prices with a lag. You may renew early or in the expiry month; a late COE renewal within 1 month costs $50 to $250 extra.
A lapsed COE loses even the residual rebate
After the late window the car must be disposed of, with no COE rebate. Read what happens when a COE expires.[1]
After renewal
Running costs that rise after year 10
LTA adds a road tax surcharge from year 10 that climbs every year you keep the car.[4]
Road tax surcharge ladder after year 10
Repairs and insurance
Before paying a PQP, list the work your workshop expects over the next 2 to 3 years. Insurance on an older car depends on the policy, so ask for a renewal quotation.
Rebate offset, transfer and division
Can you move your COE or its rebate to a new car
The COE stays with the vehicle. What can move is the COE rebate after deregistration: it can offset the PQP to renew another vehicle you own. Divide a large rebate first at $21.80 per portion, or the unused balance is forfeited.
- [ ] COPY 1 · OneMotoring
Offset
Against the PQP of another vehicle you own, or new registration fees. - [ ] COPY 2 · OneMotoring
Transfer
To another person at $20 per rebate. - [ ] COPY 3 · OneMotoring
Use within 12 months
Rebates expire 12 months from deregistration.
Rules from LTA's rebate page.[2] See what a scrap quote is really paying.
Should I renew my COE or replace the car
Is a COE-renewed car worth buying or keeping
Keep and renew when
- The car is reliable and mileage is stable.
- PQP is low against the PARF you would give up.
- Little PARF is left, for example after a lay-up.
Deregister and replace when
- Known repairs over 2 to 3 years are large.
- You need newer safety or fuel technology.
- A buyer of a renewed car inherits only the years left, with no PARF.
The exit
If you stop driving: scrap or export before the anniversary
Itemise the exit: PARF and COE rebate from LTA, body value or export value from the buyer, minus loan settlement, towing and fees. Unused road tax is refunded to the last registered owner.[4, 6]
Route and sequence
Compare exporting instead of scrapping, plan the last drive and clear any financing. Read deregistering a car step by step.
- Disposal documents are due within 1 month; a Bill would cut that to 14 days. Proposed, not yet in force as of 14 September 2026.[7]
If you choose to renew COE or buy new car later, the exit lines stay the same. Carscrap arranges scrapping, deregistration and export through a partner scrapyard, which replies line by line at no charge from Carscrap. Get an itemised quote
Method
How this comparison was built, and what it cannot tell you
Rules come from Land Transport Authority (LTA) / OneMotoring pages on renewal, rebates and road tax, checked 14 September 2026; ledger figures are hypothetical inputs to those formulas. Not modelled: repairs, insurance, the used-car market and depreciation, body value, PQP forecasts and the 5-year renewal rebate.
-
Fix the date and cohort
Exact registration date and COE bidding exercise.Open LTA’s rebate enquiry -
Check this month’s PQP
The published rate for your category. -
Estimate PARF
LTA’s rebate enquiry, dated before the anniversary. -
Cost what comes next
Repairs, surcharge and a replacement budget.
Carscrap arranges vehicle scrapping, deregistration and export in Singapore through a partner scrapyard. Carscrap itself does not hold an LTA scrapyard appointment; our partner's name and status will be published on our About page. We do not handle rebates or LTA submissions for you.
FAQ
Frequently asked questions
My COE expires next month. Is there still a COE rebate if I scrap now?
Only for the unused months left, so with weeks to go it is close to nothing. A lapsed COE gets no rebate at all. Question any quote showing a sizeable COE rebate line at expiry.
If I renew for 5 years, can I renew again when it ends?
Not for Category A, B or D. The 5-year COE renewal is once only, and the car must then be deregistered. Category C goods vehicles can keep renewing in 5-year periods until their statutory lifespan.
Does a COE-renewed car still get a PARF rebate when I scrap it later?
No. PARF is paid only on cars deregistered before 10 years, and renewal carries the car past that point. Only a COE rebate on the renewed COE's unused months can come back.
Can I use the COE rebate from one car to renew another car I own?
Yes. A rebate can offset the PQP to renew another vehicle you own. Divide it first at $21.80 per new portion if it is larger than the fee, or the unused balance is forfeited.
What happens if I miss my COE expiry date?
You can still renew within 1 month after expiry, with a late fee of $50 to $250 by engine capacity. After that the vehicle must be disposed of immediately, with no COE rebate left.
Is it worth to renew COE for 5 years instead of 10?
Only if you plan to stop within 5 years. It costs half the PQP, but a Category A or B car cannot be renewed again and a later buyer inherits only the years left, which limits resale.
Will COE drop in 2027?
Nobody can say reliably, and this page does not forecast. PQP averages the last 3 months of bidding results, so any fall in Quota Premiums reaches the renewal price gradually.
Does road tax go up if I renew my COE?
Yes. LTA adds an age surcharge of 10% of road tax once a car is more than 10 years old, rising 10 points a year to a 50% ceiling for the oldest cars.
Does the Budget 2026 PARF cut affect my 10-year-old car?
No. The 30% to 5% schedule capped at $30,000 applies to COEs from the 2nd February 2026 bidding onwards. It shrinks the future rebate of a replacement car, not your current one.
Is renewing always cheaper than scrapping at year 10?
Not by rule. Renewing costs PQP and gives up PARF; scrapping before the anniversary returns PARF plus any body value but leaves a replacement to buy. Put every line side by side first.
Does a laid-up or imported used car change the decision?
Often. A laid-up car has lost PARF eligibility, and an imported used car qualifies only if it was not more than 3 years old when registered here on or after 1 September 2007.
Should I renew early or wait for the month my COE expires?
Both are allowed. Early renewal uses the PQP of the month you pay; waiting uses the expiry month's PQP. Compare the published rates for your category, and never let the COE lapse.
Get a quote
Renew COE or buy new car: see your exit value first
Primary sources
Sources
Fetched 14 September 2026. Expert quotes are cited sources, not Carscrap affiliates.