PQP (Prevailing Quota Premium)
PQP, or Prevailing Quota Premium, is the moving-average COE price an owner pays to renew a COE rather than bidding for a fresh one.
What it means
PQP is the price an owner pays to renew the COE on a car they already own, so they can keep it on the road past the original 10-year term. Instead of going through the open bidding exercise, a renewing owner pays the PQP, which is calculated as a moving average of COE premiums over the preceding months for the relevant category. Because it is an average rather than a single auction result, the PQP smooths out the sharp swings that individual bidding exercises can produce. An owner choosing to renew can pay the PQP for a further 5 years or for a further 10 years. Renewing for 5 years is a one-time choice: a COE renewed for 5 years cannot be renewed again, while a COE renewed for 10 years can be renewed once more after that. Renewing a COE also means giving up any PARF rebate, since that rebate is tied to deregistering the car within its original term.
Why it matters in Singapore
At the 10-year mark, every owner faces the same fork: deregister the car or renew its COE by paying the PQP. The PQP figure, set each month, is the number that decides whether keeping an older car makes financial sense. Because it tracks recent COE prices, a high-COE market pushes renewal costs up too. Understanding PQP is essential for anyone weighing whether to extend the life of a car they already know, or move on to a different vehicle.
What it means for car owners
The renewal decision rests heavily on the condition of the specific car in front of you. Paying the PQP to extend a COE only makes sense if the vehicle is sound and worth another 5 or 10 years of use. A car whose bodywork, paint, and interior have been kept in good order is a far easier candidate for renewal, because the owner is extending something that still looks and feels worth keeping. Revol Carz helps owners get a car into that condition, so the renewal-versus-replace decision is made on a vehicle at its best.