What can you do if your COE is expiring? Let's explore your available options in this guide for you. (Updated for 2026)
If you're a car owner in Singapore, you're probably familiar with the concept of the Certificate of Entitlement (COE). The COE is a critical component of vehicle ownership in the city-state, and it comes with an expiry date. When your COE is about to expire, you may find yourself wondering what options are available to you.
In this article, we'll explore the various choices you have when your COE is expiring and how they can impact your car ownership experience in Singapore.
Before delving into your options, it's essential to have a good understanding of the COE system. A COE gives you the right to own and use a vehicle in Singapore for 10 years. Before your COE expires, you’ll need to decide whether to renew your COE or deregister it entirely.
One frequently asked question is, can I renew my COE before it expires?
The answer to that is yes, you can renew your COE anytime beforehand (be it 1 month, 1 year etc.) but you will be forfeiting the remaining period of your old COE.
In some cases, people tend to do so if they foresee COE's PQP is going up in the next few months. So they would be able to save money if they were to renew now than later (An example in the past was when COE prices dropped to $1).
So enough explaining, let's get back to the topic!
If you wish to keep your car registered, you have to renew your vehicle’s COE before it expires, or within 1 month after its expiry date with payment of a late renewal fee. Otherwise, your car must be deregistered and disposed of.
You can choose to renew your COE for a period of either 5 years or 10 years.
Why would people choose this option?
You’ll only be paying the cost of the new COE as opposed to buying a new car. Your depreciation over the next 10 years will also be significantly less than purchasing a new car.
What do I need to take note of?
Your PARF Rebates would be forfeited if your existing car is on its first COE cycle. PARF rebates is the amount of money you get back from the government if you deregister your car within the first 10 years (also known as scrap value).
The maintenance for 10-year-olds may include a fresh coat of paint or changing of parts, such as your suspension and transmission. There is also an annual vehicle inspection for cars > 10 years, as opposed to a biannual inspection for those < 10 years of age.
How do I know whether it’s worth forgoing my PARF rebates?
You’ll need to know the Additional Registration Fees (ARF) that was paid when your vehicle was first registered. Your PARF rebate is calculated as a percentage of this ARF, so it determines how much money you'll be giving up if you choose to renew your COE instead of deregistering your car.
For example, a 2016 Mercedes Benz C200 AMG Line with an ARF of $53,463 has a PARF Rebate amount of $27,231. You’ll be losing your PARF rebate if you choose COE renewal over deregistration, which is quite a significant amount.
[2026 Update: If your car was registered from 16 February 2026 onwards, you'll receive a lower PARF rebate when you deregister it within its first 10 years. The government has reduced the PARF rebate percentages and lowered the maximum rebate from $60,000 to $30,000. In other words, you're receiving a smaller PARF rebate than owners of older vehicles. If you car was registered before 16 February 2026, the previous PARF rules still apply, so the amount you're giving up could be significantly higher. Click here to check out how much PARF rebate your vehicle is eligible for)
How do I renew?
Pay the Prevailing Quota Premium (PQP) for your vehicle category. PQP is the moving average of the COE prices over the last 3 months. Check the latest PQP Prices here.
Here are the steps:
What happens if I extend for 5 years only?
You pay 50% of the PQP at the point of renewal. Although this may be a more financially sound option for those who may not have as much ready cash for a full 10-year COE renewal, but if you opt for a 5-year renewal, you won’t be able to extend the car’s lifespan further once the COE’s tenure is up.
What happens if I extend for 10 years?
A 10-year COE can be renewed in perpetuity but do take note of the statutory lifespan of your vehicle as you cannot renew the COE any further than that. There is also an additional 10% surcharge on road tax per annum for cars over 10 years, up to a maximum of 50%.
If you decide not to renew your COE, your car’s ownership effectively ends when the COE expires. You’ll need to deregister your vehicle and it will be scrapped or exported. This can be a hassle-free option if you no longer wish to own a car or if the maintenance costs have become prohibitive.
When you deregister your vehicle, you can enjoy both PARF & COE rebates.
PARF rebate is only applicable for cars and taxis that meet the eligibility criteria.
COE rebate is granted if you deregister your vehicle before its COE expires. The earlier you deregister, the more COE rebates you will enjoy.
These rebates have to be redeemed within 12 months from your deregistration date.
You can redeem your rebates by taking them out in case, using them to offset various taxes and fees when you register your vehicle or renew the COE of your existing vehicle or transfer them to another party.
Once your car is deregistered, it can no longer be kept or used in Singapore. It is the vehicle owner’s responsibility to deregister, properly displose of the vehicle and submit vehicle disposal document to LTA within 1 month from the vehicle deregistration date.
From this point onwards, you can then decide if you’d still like to own a car - either a new one or a used one.
Whether you decide to renew your COE, the key is to make an informed choice that aligns with your lifestyle and financial goals.
Interested in renewing your COE? Take a a COE loan with noto today! Get interest rates as low as 2.58% and get $2,000 rebates without increasing your transfer count!
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