It is natural to quickly presume that renewing your COE would be much cheaper than getting a new car. If you’ve ever had a car reaches the end of its COE, you should be no stranger to the dilemma. Granted, the answer to this will vary depending on your individual needs and priorities. Nonetheless, it is in every car owner’s interest to have an understanding of the benefits and costs involved. The first thing that will cost you regardless of if you keep your 10-year-old car or buy a newer one is the Quota Premium(QP) or Prevailing Quota Premium(PQP) to acquire a new COE.. While the price of the QP/PQP will be the same no matter what, knowing how much to renew COE is likely to cost you will help you determine how much latitude you have to lay out extra funds for a newer car.
For reference, the Prevailing Quota Premium for Category A vehicles has been around $50,000 so far in 2017.One of the most important factors in your decision of whether to renew the COE on your car or scrap it and buy a newer one is how much you are willing or able to spend on a newer car. A newer car will not incur the high maintenance costs of an older COE car, whose maintenance cost can vary significantly depending on the car’s condition. Furthermore, if you buy it when it’s still relatively young (up to 3 to 5 years old), it may still have a few years left on the manufacturer’s warranty that will help give you some peace of mind and alleviate the cost of replacing or repairing any major car parts.