Becoming a car owner in Singapore is tough when compared to the other countries because there are special regulations set. Owning a car means that you will have to spend on a lot of taxes and to keep using the car, you will have to get a COE. A COE is stands for Certification of Entitlement. The COE expires after 10 years. This means that when you have used the COE for 10 years, you can either renew the COE or send your car to the scraps and get new car.
If you are renewing the COE
Most of the car owners tend to weight the pros and the cons of the two options that they have. They can either extend their COE and keep using the car or buy a new car and send the old car to the scraps. When compared to renewing the COE, if you want to buy a new car, you will have to pay twice as much. Also, if you love your old car, you will not want to send it to the scraps. Due to these two reasons and many other reasons, car owners decide that there should renew their COE and keep using the car. If you want to renew the COE, you will have to pay the pqp coe. The pqp is the Prevailing Quota Premium. This will give you the chance to keep using your vehicle from 5 to 0 years. Paying the pqp will save you from a lot of complications and you don’t have to bid for anew COE to renew it.
The difference between a 5 year and a 10 year COE
When you are renewing your COE, you have thee the option to choose from 5 year COE and a 10 year COE. When you get a 5 year COE renewal, you will have to pay only 50% of the pqp but instead, you will have to send your car to scraps definitely after 5 years. When you are getting the 10 years COE, you will have to pay the full pqp value and the COE will take 10 years to expire.
When should I renew my COE?
When you are a car owner, you should have a clear plan on what you should do with your car and not. Therefore, it is recommended that you start planning your COE at least 6months prior to the expiration of the COE so that you can start the rest of the procedures on time and guarantee that you have you to deal with the minimum complications.