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4 things you need to know before renewing your motorcycle COE
Tue, 11/07/2017 - 16:23
Due to the price drop of motorcycle Certificate of Entitlement (COE) premiums within recent months, more and more Singaporeans are renewing their motorcycle COE – with 30 per cent more than the previous year. With higher capacity motorcycles facing steep Additional Registration Fees (ARF), it’s not as surprising to see why as well. However, there are still some things that need to be taken into consideration. If you are planning on renewing your motorcycle COE, here are 4 things to you need to note for a smooth and seamless extension.
1. Road Tax Surcharge for Motorcycles Over Ten Years OldSimilar to automobiles, additional surcharge is applied to motorcycles over ten years of age. Surcharge is calculated as 10 per cent of the motorcycle’s average road tax cost. The maximum surcharge on road tax for motorcycles is up to 50 per cent. For older motorbikes that need constant maintenance and repairs, the additional cost of the surcharge might not be worth it in the long run.
2. Prepare to Pay the Prevailing Quota PremiumUnlike new motorcycle buyers who pay for COE bidding rates, motorcycle renewals will have to pay the Prevailing Quota Premium (PQP).This can be an advantage or a disadvantage, depending on the market. PQP is calculated by the moving the average COE prices of their respective category for the last three months. You can check the OneMotoring website to find out the current PQP rates. There are three basic ways you can pay your PQP: via internet, by post, and at the LTA Customer Service Centre.
3. You Can Opt for a Five-Year COE RenewalIf you plan on getting a brand-new motorcycle in the near future, opting for a five-year extension might be just what you need. Five-year motorcycle COEs buyers are only required to pay half the PQP rate. However, keep in mind that you will have to de-register your vehicle after those 5 years. It’s a great choice for those who want to de-register their motorcycle but don’t necessarily have the budget yet to buy a brand-new motorcycle. https://www.pexels.com/photo/black-calendar-close-up-composition-273011/
4. You Can Renew an Expired Motorcycle COEIf you have your expiring COE renewed in the expiry month or one month after the expiry date, the PQP rate will follow the expiry month. However, the COE will start on the next day after the expiry date of the ending one. For most Singaporeans, the ideal way to transition is to renew it much earlier. This way you get a rebate which is pro-rated. But if you don't have a choice, don't forget that you can actually renew an expired motorcycle COE!
Plan for Your COE RenewalA COE is a huge financial commitment in Singapore, and making an informed decision before renewal is a must. Did you have your motorcycle COE renewed recently? What was your experience like? Share it in the comments section below. Enjoy Greater Savings on Motorbike Insurance With DirectAsia Insurance, you can pick and choose the benefits you want so you only really pay for what you need. Get in touch with our personal claims specialist today! Choose the plan you want. Pay the way you want. You are insured!