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 |
Category E has no PQP of its own: LTA renews an open-category COE under the vehicle's corresponding category, A to D.
Check our PQP Rates page for current Category A and B rates.
The Renewal Process
- Choose when: Renew any time before expiry, or up to 1 month after it with a late fee
- Decide term: Choose 5-year or 10-year renewal
- Apply online: Submit via OneMotoring
- Pay PQP: Complete payment before COE expiry
- Receive new COE: Starts the day after the old one expires if you renew in the expiry month; renew earlier and it starts on the 1st of the following month, forfeiting the unused months
Important: If you do not renew within 1 month of expiry, LTA requires the vehicle to be disposed of.
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?
Yes, at any time. Renew in the month the COE expires and the new COE starts the day after expiry. Renew earlier and it starts on the 1st of the month after you renew, so you forfeit the unused months. You pay the PQP of the month before the expiry month when renewing early, or of the expiry month itself when renewing in that month.
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.