COE stands for Certificate of Entitlement which is a document which certifies you as the owner of the car. However, it expires after every ten years, and after its expiration, you have to either scrap your car or pay to get it renewed. There is no loophole which can save you from going through either of the two options. Deciding whether to scrap your old car or get the COE renewed depends on the condition of your car. It is definitely a big decision but, we are here to help you with that. Let’s tackle the problem step by step.
Should I send my car to the scrap yard?
The first option you have is to send your car to the scrap yard and look for a new one. You can also buy a new, used car. However, it will still be very expensive, and the cheaper option is still getting your COE renewed. The scrap yard is not going to pay you even half of what your actual car is worth.
You should only go for this option when you:
- Have too much money to buy a new car
- Are okay with travelling on public transport
Having a car makes your life a lot easier. Seriously, how long are you going to travel to rented cars, buses and taxis? With the help of your own car, you can basically travel anywhere at any time you want.
Buying a new car comes with a lot of hassle. You have to pay for so much, such as the dealership fee, shipment charges, maintenance, customization, doc fee, and various other hidden charges. Not only this, but you also have to scourge for auto financing loans with low interest rates and good perks. The whole point comes down to the questions given below:
- Can you afford to buy a new car?
- Can you comfortably live off by travelling on public transport?
- Is your car becoming a liability for you?
Should I renew my COE (Certificate of Entitlement) when it expires after ten years?
The other option you have right now is to renew your Certificate of Entitlement (COE) by paying off the PQP. PQP is an acronym which stands for Prevailing Quota Premium. It is a fee which is to be paid when renewing a Certificate of Entitlement (COE) for a vehicle which is already in use. You have two options here, either you pay half and get the COE renewed for five years or you pay it entirely and drive your car for another ten years. This option is very convenient and manageable as it gives you a flexible limit to your COE in case you plan to buy a new car within the next four or five years.
You also have the option of paying the Prevailing Quota Premium (PQP) either entirely or in monthly installments. With the help of monthly installments, you will only have to pay a couple of hundred dollars per month to drive your car for the next 5 or 10 years.