We thank Mr Tan Tor Seng (Brief extension for 5-year COE period, Nov 27) for his feedback.
All new certificates of entitlement (COEs) are valid for 10 years in the first instance. The owner of a 10-year-old vehicle can renew the COE for another 10 years based on the Prevailing Quota Premium (PQP). Owners who do so will receive a rebate on the PQP paid if they subsequently deregister their vehicles early.
As an exception, the Land Transport Authority provides a five-year renewal option for owners who feel that their vehicles may not last for another 10 years. This is on the condition that their vehicles must be deregistered at the end of five years. This condition is made known to vehicle owners when they renew their COEs.
Understandably, some owners may feel differently after five years, but it will not be fair to the other car owners for an exception to be granted.
In addition, as the COEs from deregistered vehicles are returned to the pool of COEs available for bidding, allowing further extension of five-year COEs could reduce the supply of COEs available for bidding, which may then push up COE prices. This will then affect people who need to buy new vehicles, especially during this period.
As a whole, our vehicle ownership system aims to be fair, while taking into account the different needs of existing car owners and prospective owners.
Ong Hui Guan
Deputy Group Director
Policy and Planning
Land Transport Authority