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COE Renewal in Singapore | Certificate of Entitlement – A Quick Guide

DirectAsia Insurance_Person renewing COE for car certificate, stamping approval on the paper document

A Quick Guide to Certificate of Entitlement Renewal

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It's no secret that the cost of acquiring and running a car in Singapore is about five times more expensive than those living in the United States; 6 times more expensive than Australia; and 5.5 times more than China.

This is mainly because Singapore is a rapidly growing economy. It has world-class public facilities that all the citizens enjoy. It can even be said that Singapore is on par with other modern metropolises like Zurich in Switzerland, Paris in France, and Hong Kong.

As a Singaporean citizen or permanent resident, you would understand why the cost of driving a private vehicle in the country is expensive. And one document – synonymous with the word car in Singapore – is the "Certificate of Entitlement," or simply COE. This paperwork bestows someone the right to acquire a vehicle.

Well, if you've been hitting Singapore's busy yet clean streets at the moment, you might have an idea of how labor-intensive it is to acquire a COE. Nonetheless, here are all the details you need to know on how to renew your COE!

In this article, we'll briefly discuss COE, how to get one, and a quick rundown on renewing it.

 What exactly is COE?

As mentioned above, COE stands for Certificate of Entitlement. Basically, this confers someone the right to purchase, own, and run a vehicle in Singapore for a maximum duration of 10 years.

It is important to note that getting your hands on a COE is not easy. There's a COE quota available for the whole country. After a decade, owners have to either renew their COEs for another 5 or 10 years to keep their vehicles. Otherwise, they have to either deregister or scrap their cars.

What's with the Scarcity of COE?

Due to Singapore's extremely limited land area (728 square kilometers) and the ever-growing population, the government enacted the Vehicle Quota System (VQS).

This directive basically regulates the total number of vehicles running on the state's roads. By imposing only, a definite number of COEs at a given period, VQS can control Singapore's terrifying traffic situation.

Skyrocketing Prices of COE

The popular economic model of Supply and Demand also relates to why the price of COE is exceptionally volatile. At certain random given periods, COEs will incur aspiring car owners to shell out extra dollars, a tad more than the usual fees.

Fundamentally, since Singapore is a progressive country, many people would have wanted to have their own cars. This will mean that the demand for COEs significantly supersedes the availability of supply, thus escalating the prices of COEs.

To say the least, COE is the leading cause of why cars in Singapore are mega exorbitant.

Renewing your COE

When a COE expires, the owner needs to renew it to keep the car registered under his/her name. Otherwise, the car will be deregistered and, ultimately, scrapped.

Some people tend to purchase a new car when their COE expires. However, renewing their COE is the most economical thing to do for most.

Owners can renew their COEs even before the document's actual expiry date. It can even be extended for up to 30 days after the expiration date, as long as the owner already started the renewal process.

However, the car won't be allowed to take on the road during the process. Also, expect an additional fee for late payment.

Here are some ways on how to renew your COE:

1. Renewing COE Online

With modern tech available, renewing your COE is now a breeze with the help of the Internet. To do this, you'll have to access the OneMotoring website.

This website is operated by Singapore's Land Transportation Authority (LTA). It deals with all things related to vehicle-information and convenient digital services.

Fill up all the necessary information. You're required to have a personal Internet banking account with sufficient funds in any of the following banks:

  • Citibank
  • Standard Chartered
  • OCBC
  • UOB

2. Renewing the COE via Snail Mail and thru LTA's Customer Service Centre

Renewing your COE via snail mail is the traditional yet, sort of, slow process to complete the task. However, it's the same process when renewing your COE through LTA's Customer Service Centre.

Simply download the  COE Renewal Application form, fill in the required information and send it to this address:

Land Transport Authority (LTA)

Customer Service Centre

10 Sin Ming Drive

Singapore 575701

If you plan to pay with a Cheque, ensure that it is payable to "LAND TRANSPORTATION AUTHORITY" and cross "A/C Payee Only." Also, include your car's info and contact details on the backside of the Cheque.

For those with expired COEs, LTA will only accept payments via Cashier's order. It's recommended that the mail be sent at least two weeks before the actual expiry date because the date of your COE renewal application is also the date the LTA receives the application.

If your COE is past its expiry date, expect to be penalized with a late fee. However, suppose you still fail to renew your vehicle's COE within a month of its expiry. In that case, you will need to deregister and dispose of your vehicle immediately.

Type of VehicleLate Fees
  Motorcycles and Private Cars (up to 1,000 cc)  $50
  Private Cars (1,001 to 1,600 cc)  $100
  Private Cars (1,601 to 2,000 cc)  $150
  Private Cars (2,001 to 3,000 cc)  $200
  Private Cars (more than 3,000 cc), Company Cars, and Goods & Public Service Vehicles    $250
  Others  $250

Payment is allowed via cash, Cashier's order, and Diners Club or NETS card. Also, take note of the Service Centre's operating hours stated below:

  • 8:00 am to 4:30 pm on Mondays to Fridays
  • 8:00​ ​am to 12:00​ ​pm on Saturdays

Renewing Your COE: 5 Years vs. 10 Years?

As mentioned, if you opt to renew your COE, you can do so for a period of either five years or ten years. This will depend on several factors, such as under what category your vehicle falls and its statutory lifespan.

Five-Year Renewal Period

If you wish to renew your COE for five years, you will need to pay half of the PQP required. Moreover, there are certain conditions applied for each vehicle category. They are often classified under four categories – A, B, C, and D.

Vehicles that fall under categories A, B, and D can only renew their COE for five years once. After this, you can no longer do so, and you need to deregister your vehicle.

However, category C vehicles can renew their COEs several times after the initial renewal. However, the only catch is that the subsequent renewals can only be for 5-year periods. Moreover, once your car reaches the end of its designated statutory lifespan, you can no longer renew your COE and will have to deregister it.

Ten-Year Renewal Period

On the other hand, if you choose to renew your COE for ten years, you must first pay the entire PQP for your vehicle's category. Unlike the 5-year renewal period, vehicles falling under the categories A, B, and D aren't limited when renewing for ten years.

Five Years or 10 Years?

Choosing to renew your COE for either 5 or 10 years will entirely depend on you and how long you intend to keep your car.

For example, if you want to keep your car for another few years but want to change sometime in the future, it might be best to renew for five years only. Aside from cutting the PQP by half, it's also less commitment on your part.

On the other hand, if your car is relatively new and you can foresee driving it for another ten years, then the 10-year period might be the better option.

Final Words

It is understandable why some may think that renewing COE is a big hassle. However, that couldn't be further from the truth. The methods mentioned above are quick and straightforward, so you will not have any problems getting your beloved car on Singapore's excellent roads again.

If you want more information about renewing your COE and its benefits, you can ask for assistance from DirectAsia and call the hotline at 6665 5555. They can help you evaluate whether renewal is the best option for you and what it means for your car insurance.