What is PQP?
The Prevailing Quota Premium (PQP) is the moving average of COE prices used to calculate the cost of renewing your Certificate of Entitlement after the initial 10-year period expires.
When your COE expires, you have two choices:
- Deregister and receive any remaining PARF/COE rebates
- Renew by paying the PQP for another 5 or 10 years
How PQP is Calculated
PQP is the 3-month moving average of Quota Premiums in your vehicle's COE category. It's updated after each COE bidding exercise (twice monthly).
For example, if the last 6 COE results for Category A were:
- $95,000, $98,000, $97,000, $100,000, $99,000, $96,000
The PQP would be based on the average of the most recent results, smoothing out short-term fluctuations.
Renewal Options and Costs
| Renewal Term | Cost | Notes |
|---|---|---|
| 10-year renewal | 100% of PQP | Full decade of usage |
| 5-year renewal | 50% of PQP | Shorter commitment |
Example
If Category A PQP is $100,000:
- 10-year renewal: Pay $100,000
- 5-year renewal: Pay $50,000
Note: After a 5-year renewal, you cannot renew again: the car must be deregistered when the renewed COE expires.
PQP vs COE Bidding
| Aspect | PQP (Renewal) | COE (New Registration) |
|---|---|---|
| Price | Fixed (moving average) | Variable (auction) |
| Timing | Pay when your COE expires | Bid during exercises |
| Flexibility | Choose 5 or 10 years | Always 10 years |
| Competition | None (guaranteed) | Bid against others |
Key advantage of PQP: You're guaranteed renewal at the published rate: no bidding competition.
When to Renew vs Deregister
Consider Renewal When:
- Your car is well-maintained and reliable
- Current PQP is lower than prevailing COE prices
- You want to avoid the hassle of buying a new car
- The car has low mileage and good condition
Consider Deregistration When:
- Car requires expensive repairs
- You want a newer model with better features
- PARF rebate is still substantial (pre-Feb 2026 cars)
- Running costs are high (road tax, fuel, maintenance)
Important: No PARF After Renewal
Once you renew your COE, the car becomes PARF-ineligible. You will only receive a pro-rated COE rebate if you deregister later: no PARF rebate.
This is a key consideration: if your car has significant PARF value remaining, deregistering might yield more than the car's resale value with a renewed COE.
PQP by Category
PQP rates vary by COE category:
| Category | Vehicles | Typical PQP Range |
|---|---|---|
| A | Cars ≤1,600cc/130bhp | Moderate |
| B | Cars >1,600cc/130bhp | Higher |
| C | Goods vehicles, buses | Lower |
| D | Motorcycles | Lowest |
| E | Open (any vehicle) | Highest |
Check our PQP Rates page for current rates across all categories.
The Renewal Process
- Check eligibility: Your COE must be expiring within 3 months
- Decide term: Choose 5-year or 10-year renewal
- Apply online: Submit via OneMotoring
- Pay PQP: Complete payment before COE expiry
- Receive new COE: Valid from the day after original expiry
Important: If you miss the deadline, your car becomes illegal to drive and may be deregistered automatically.
PQP Trends
PQP follows COE market trends with a lag due to the moving average calculation:
- When COE prices rise, PQP increases gradually
- When COE prices fall, PQP decreases gradually
- The smoothing effect protects against extreme spikes
Frequently Asked Questions
Can I renew before my COE expires?
You can apply for renewal up to 3 months before expiry, but the new COE period only starts after the current one ends.
Can I renew again after a 5-year renewal?
No. A 5-year renewal is final: when it expires, the car must be deregistered. Only a 10-year renewal allows for a subsequent renewal.
Is the PQP refundable if I deregister early?
Yes, you receive a pro-rated refund based on remaining months. However, no PARF rebate applies to renewed COEs.
Why is PQP sometimes higher than current COE prices?
PQP is a moving average, so it can lag behind recent price drops. Conversely, it may be lower than current prices if COE has recently spiked.