Scrap Your Car or Renew COE? What Each Option Costs in 2026

Updated October 2026 with the latest COE renewal prices.

When a car nears its tenth year, the COE is close to running out and you have to choose. You can renew the COE and keep driving, or deregister the car and scrap or export it. This guide puts both options in 2026 dollars, so you can see what each one costs before you decide.

What COE renewal costs in October 2026

To renew a COE you pay the Prevailing Quota Premium (PQP) for your car’s category. The PQP is the moving average of the COE prices from the last three months of bidding, and LTA updates it every month. A 10-year renewal costs the full PQP. A 5-year renewal costs half, rounded up to the nearest dollar.

Category	PQP, October 2026	10-year renewal	5-year renewal
Cat A (smaller cars)	$128,715	$128,715	$64,358
Cat B (larger cars)	$131,616	$131,616	$65,808

For comparison, the first October 2026 bidding exercise closed at $130,001 for Cat A and $130,100 for Cat B. Renewal is no longer much cheaper than a new COE, which makes the scrap or renew decision closer than it was a few years ago. Check the PQP for the month you plan to renew on OneMotoring, since it changes every month.

Option 1: Deregister and scrap your car

If you deregister the car before its tenth registration anniversary, LTA pays you two rebates:

• PARF rebate. A share of the Additional Registration Fee (ARF) you paid when the car was new. At 9 to 10 years old a car registered before February 2023 gets 50 per cent of the ARF.
• COE rebate. The unused part of the COE, pro-rated to the time left. With a few months to go this is small, but it still counts.

The scrap dealer then pays you for the car itself, called the body value. Together these make up the scrap value of your car. Our PARF and COE rebate guide shows how each figure is worked out.

Timing matters. The PARF rebate ends on the tenth anniversary of registration, so a car scrapped one week late loses it completely. If you are leaning towards scrapping, deregister before that date.

Option 2: Renew the COE

Renewing lets you keep a car you know and avoid buying a new one at today’s prices. Before you pay, count what you give up and what you take on:

• The PARF rebate is gone. Once the car passes 10 years it can never earn a PARF rebate again. If you deregister it later, you get only a COE rebate on the PQP you paid.
• Road tax goes up. Cars more than 10 years old pay a road tax surcharge of 10 per cent, rising by 10 per cent a year to 50 per cent after 14 years.
• Repairs cost more. Older cars need more parts and more workshop visits.
• 5 years is final. A Cat A or Cat B car on a 5-year renewal cannot be renewed again. When those 5 years end, the car has to be deregistered.

A worked example

Take a Cat A car first registered in late 2016 with an OMV of $25,000. Its ARF was $27,000 (100 per cent of the first $20,000 plus 140 per cent of the next $5,000).

• Scrap before 10 years: PARF rebate of 50 per cent of $27,000, which is $13,500, plus a small COE rebate and the body value from the dealer.
• Renew for 5 years: pay $64,358 at the October 2026 PQP, give up the $13,500 PARF rebate, and pay the road tax surcharge each year.
• Renew for 10 years: pay $128,715, with the same PARF loss and a surcharge that climbs to 50 per cent.

In this example the 5-year renewal costs about $78,000 once the lost rebate is counted, before road tax and repairs. That is roughly $15,600 a year to keep a car that is already 10 years old. Your own numbers will differ, so run the PARF/COE rebate enquiry on OneMotoring for your car and compare.

Five questions to ask before you renew your COE

1. How long will you keep the car?

If you need a car for only a few more years, a 5-year renewal can cost less than a new car. If you expect to drive for 10 years or more, compare the 10-year PQP with the cost of a new car carrying a fresh PARF rebate.

2. Is the car still in good condition?

A car that has been serviced on time and has no major faults can run another 5 years without big bills. If it already needs a repair every year, renewing means paying the PQP and the repairs. Scrapping and moving to a newer car is often cheaper.

3. Is it a weekend car or an off-peak car?

Off-peak cars pay the same PQP as a normal car of the same category when they renew. If you use the car only at weekends, check that the renewal still makes sense at the full price.

4. How will you pay for the renewal?

If you need a loan for the PQP, compare its monthly instalment with a loan on a new car. Add the higher road tax to the monthly figure so you compare like with like.

5. How much of the car’s value is the COE?

For a mass-market family car, the COE is most of what the car is worth, and the renewal can cost more than the car itself. For a car with a high OMV, the PQP is a smaller share of its value, so renewing can be easier to justify.

How to renew your COE

1. Check the PQP for your category on OneMotoring for the month you plan to renew.
2. Log in to OneMotoring with Singpass and open Renew COE under Digital Services.
3. Choose 5 or 10 years, and pay the PQP online.
4. The new COE starts the day after the old one expires. Renewing early does not cost you any COE time.

You can renew up to 1 month after the COE expires, but LTA charges a late renewal fee of $50 to $250 depending on the vehicle. After that month you can no longer renew, and the car must be disposed of.

If you decide to scrap

Ask for a quote while the car is still under 10 years old, so the PARF rebate is included. We check the rebate on LTA’s system, quote a body value based on the make, model and condition, and handle the deregistration with LTA. Read what happens when a COE reaches 10 years, or go through the full deregistration guide for the LTA steps.

Get a free scrap car quote

Frequently asked questions

How much does it cost to renew a COE in 2026?

In October 2026 the PQP is $128,715 for Cat A and $131,616 for Cat B. A 10-year renewal costs the full PQP and a 5-year renewal costs half. The figure changes every month.

Can I renew my COE for 5 years twice?

No, not for a Cat A or Cat B car. The 5-year renewal is allowed once. After it ends, the car must be deregistered.

Do I lose the PARF rebate if I renew my COE?

Yes. A car only earns a PARF rebate if it is deregistered within 10 years of registration. Renewing keeps it on the road past that point, so the rebate is lost.

What happens if I do not renew in time?

You have 1 month after expiry to renew with a late fee. After that you must scrap or export the car.

Is it better to renew COE or buy a new car?

It depends on the car’s condition and how long you will keep it. Renewal costs the PQP and gives up the PARF rebate. A new car costs more upfront but comes with a full PARF rebate and lower road tax. Work out both with your own figures before you decide.

Sources: LTA OneMotoring, COE renewal and PARF and COE rebate pages; COE results for October 2026.