In Singapore, all vehicles require a Certificate of Entitlement (COE). The price of the COE for a particular vehicle is termed the "Quota Premium" (QP). You may also have encountered the term "Prevailing Quota Premium" (PQP). What does this term mean and how is it different from the QP?
The term PQP refers to the amount required to extend or renew the COE for a vehicle already in use. Unlike buying a new vehicle, one does not need to bid for COE when buying a used vehicle; instead, all you need to do is to pay the PQP and the COE will be extended or renewed.
COEs for Off-Peak Cars (OPC) can also be renewed. In such cases, the PQP will be of the same value as that of a normal car. No COE rebates are available for OPC during renewal.
The PQP is calculated based on the moving average of the QP in the last 3 months. For all vehicle categories, the COE may be renewed for a period of either 5 or 10 years. COEs which have been renewed for a period of 5 years are not eligible for another renewal and will have to be de-registered after they expire. Otherwise, there is no limit to the number of times for renewal.