What happens to cars in Singapore after 10 years? In Singapore, the fate of cars after 10 years is primarily governed by the Certificate of Entitlement (COE) system. This system, unique to Singapore, has significant implications on the lifespan and usage of vehicles in the country.
The COE grants the right to own and use a vehicle in Singapore for a limited period. Typically, this period is 10 years. Once a car reaches the end of its 10-year COE, the owner faces a critical decision: either to deregister and dispose of the vehicle or to renew the COE for an extended period. The renewal can be for another 5 or 10 years, depending on the vehicle’s category and statutory lifespan. This decision is influenced by various factors, including the cost of COE renewal, which is determined by the Prevailing Quota Premium (PQP). The PQP represents a moving average of the Quota Premium (QP) from the last three bidding exercises conducted in the prior three months.
Also Read : How To Check Vehicle COE Expiry Date ?
Several factors influence the decision to renew or deregister a vehicle after 10 years. High COE premiums often lead car owners to weigh the costs and benefits carefully. For many, the choice to part ways with their vehicle at the end of its initial COE period is a practical one, especially considering the increased road tax for vehicles older than 10 years. Despite this, some owners opt to renew their COE, particularly if the vehicle has been well-maintained. This decision is individual and hinges on various personal and financial considerations.
The COE system in Singapore is a mechanism to regulate vehicle age and control the number of cars on the roads. It’s a response to the limited land space and the government’s commitment to managing traffic congestion and environmental impact. By requiring either the renewal of the COE or the deregistration of the vehicle after 10 years, the system effectively limits the number of older cars on the road.
Also Read : How Many Times Can You Renew Coe ?
In summary, the destiny of cars in Singapore after 10 years is closely tied to the COE system. Vehicle owners must choose between renewing the COE at a cost determined by prevailing market rates or deregistering the vehicle. This decision is influenced by several factors, including the financial implications of renewal, the condition of the vehicle, and personal needs.
For detailed information about the COE system and its impact on car ownership in Singapore, you can refer to the sources from Channel NewsAsia and OneMotoring LTA.
Also Read : How To Renew COE ?