What Happens When Your COE Expires?

The COE expiry is one of the most significant events in a Singapore car owner's life. After 10 years of vehicle ownership, you face a decision that involves tens of thousands of dollars and affects your transportation for years to come. This guide explains exactly what happens when your COE expires, what your options are, and the step-by-step process for each path.

The Three Options at COE Expiry

When your vehicle's COE reaches its 10-year expiry date, you have three choices:

1. Renew the COE — Pay the Prevailing Quota Premium (PQP) to extend ownership by 5 or 10 years.
2. Deregister the vehicle — Surrender the vehicle to a scrapyard, collect your PARF rebate and scrap value, and stop owning the vehicle.
3. Export the vehicle — Send the vehicle to another country and collect the PARF rebate (minus export duty).

Important Timeline

LTA sends a notice approximately three months before your COE expiry date. You must decide and act before the expiry date. Here is the recommended timeline:

Option 1: Renew the COE

Renewal is the simplest process. You submit an application through OneMotoring and pay the PQP. The renewal takes effect immediately, and your vehicle can continue to be used on the road without interruption.

Key considerations:

• You can choose 5-year or 10-year renewal. See our 5 vs 10 year comparison.
• The vehicle must pass inspection before renewal.
• Renewed vehicles receive no PARF rebate if deregistered later.
• Road tax surcharges apply to vehicles older than 10 years.

Option 2: Deregister the Vehicle

Deregistration means surrendering the vehicle to be scrapped. The process involves:

1. Contact an authorised scrapyard to arrange the surrender.
2. The scrapyard handles the deregistration paperwork with LTA.
3. You receive: PARF rebate + COE rebate (if applicable) + scrap value.

For a 10-year-old vehicle deregistered at exactly the COE expiry date, the PARF rebate is 50% of the original ARF paid. If you deregister a few months before the COE expiry, you receive a slightly higher PARF percentage (based on the remaining months pro-rated within the 50-55% band). Use our PARF Calculator to estimate your rebate.

Option 3: Export the Vehicle

Exporting is less common but can be financially attractive for certain vehicles — particularly well-maintained Japanese and continental models that command premium prices in neighbouring markets like Malaysia, Myanmar, or Sri Lanka. The PARF rebate is still payable (minus an export duty), and you may also receive a purchase price from the export buyer.

What Happens If You Do Nothing?

If you take no action by the COE expiry date, the vehicle becomes unlicensed. Driving an unlicensed vehicle is a serious offence under the Road Traffic Act. The vehicle must be stored off public roads, and you must either renew the COE (if still within the grace period) or deregister it. There is no automatic extension or grace period for driving — the vehicle is immediately unlicensed on the expiry date.

Frequently Asked Questions

Yes, you can sell or trade in your vehicle at any time before the COE expires. The buyer either uses the remaining COE months or renews the COE at the point of transfer. Many dealers offer trade-in packages that handle the deregistration and new purchase simultaneously.

There is no penalty for deregistering late (after the COE has expired), but you lose PARF rebate value with every passing month within the final year. Once the COE expires, the PARF rebate drops to the minimum 50% level. More importantly, you cannot drive the vehicle after expiry, so it becomes an immobile asset depreciating in a parking space.

Yes, within a limited grace period. You can still apply for COE renewal after expiry, but the vehicle cannot be driven until the renewal is processed. It is strongly advisable to complete the renewal before the expiry date to avoid any interruption in usage.