Finance

Massive Surge in Car COE Renewals: Q1 2025 Breaks Records!

2025-05-29

Author: Sarah

Record-Breaking COE Renewals in Singapore

SINGAPORE – Buckle up! The first quarter of 2025 saw a staggering 2,834 cars renewing their Certificates of Entitlement (COEs), marking more than a twofold increase compared to the same period in 2024. This explosive growth makes it the highest number since 2020, which had a whopping 5,558 renewals.

The Trends Behind the Numbers

After a steady decline from 2021 through 2023, where renewals dipped as low as 1,129, 2024 brought a modest increase. Experts believe this sharp rise is due to an uncertain economic climate, prompting many car owners to hold off on purchasing new vehicles. Additional factors include a growing interest in electric vehicle (EV) technologies, with many choosing to wait for advancements before upgrading from their petrol-powered cars.

The Economics of Renewal vs. Buying New

For many, the option to renew their COE has become an economical choice. For instance, if you bought a Toyota Corolla Altis back in 2015 for under $120,000, renewing the COE now is far less of a hit to the wallet compared to buying a new model, now priced at around $170,000.

Insights from Industry Experts

Dr. Zafar Momin, an automotive consultant, emphasizes that the current economic uncertainties have driven owners towards renewing their existing COEs rather than splurging on new vehicles. Surprisingly, 67% of the 1,204 Category A renewals were for five years, while 74.4% of the 1,630 Category B renewals opted for ten-year COEs.

Navigating Costs: A Mixed Bag

Interestingly, the actual costs to renew COEs fluctuate based on the average premium over preceding months. In March 2025, a 10-year renewal for a Category A COE had dropped to $92,525, the lowest since September 2024. This downward trend attracts more car owners to renew their COEs.

Emerging Patterns in Car Ownership

Raymond Tang, managing director of Yong Lee Seng Motor, points out that many vehicles reaching the end of their COE life are not worth the scrap rebates, thus making renewal a sensible financial decision. For budget-conscious owners of smaller vehicles, five-year renewals are the trend, while those with larger cars prefer the option of extended use.

A Shift Toward Electric Vehicles

As the EV market expands, with 40% of new cars sold in early 2025 being electric, many petrol car owners are strategically using their existing COEs to postpone their shift to EVs while observing developments in battery technology and infrastructure.

The Environmental Impact of COE Renewals

However, this COE renewal boom has implications for air quality improvements as newer vehicles adhere to rigorous emission standards. Cars registered since September 2017 must comply with the Euro VI emissions standard, which is far more stringent than previous regulations.

Real Voices: The Personal Impact of COE Decisions

Content creator See Neng Tat, who recently renewed his Mercedes-Benz A180’s COE for ten years, reflects, "After investing so much into my car, I'm not chasing the latest tech in new models." Meanwhile, finance director Henry Seah plans to renew his Mazda Biante's COE, expressing reluctance to part with over $100,000 for a longer renewal, deeming it ‘just crazy’.

The surge in COE renewals has sparked discussions among drivers about economic choices, environmental concerns, and the future of automotive technology. As Singapore navigates this transition, one thing's for sure: every decision counts!