We do PQP monitoring for our customers, and this below is some of the info that we look at to advise them on which month to renew – customers who intend to renew their COE obviously want to pay on a lower PQP month than a higher PQP month. By the way, you did know you have a choice right? If not, take a look here.
Let us give you a few tips on what data to look out for if you are monitoring on your own.
The key items to look at are:
Price of the current month’s PQP
This price is the prevailing PQP if you renew this month. You can check this at: https://vrl.lta.gov.sg/lta/vrl/action/pubfunc?ID=EnquirePQPRates
When you go to this LTA site, key in the code text and press enter without selecting any month or year of PQP, this will let the system give you the latest available PQP and also the past five months for your reference. See the below picture:
If this is the last month of your car (example August 2018), that is, it expires this current month of August 2018, then this is the only PQP that you can pay for, you have no further choice of waiting for another month although LTA gives you a month’s grace after expiry date before you either scrap the car (and submit scrap documents as proof) or renew the COE. If you choose to renew in the month after the expiry (Example Septemeber 2018), you still pay the PQP in the month of the expiry – which in our example here is August 2018. Not a good move – why? Here’s why.
Price of the coming month’s PQP
This figure of the PQP of the following month is calculable after the second bid of each month is completed. For example, as of this post date of 27th August, we have all the September PQP prices as shown above in Onemotoring.com above.
You can also calculate it on your own. Just wait till all the bidding is completed for the current month (there are two bids per month), and then take the four other bids from the past two months, add all six together and divided by six.
Yes, the next months PQP is an average of the COE bids for the three prior months. Note also there are no half month PQPs.
COE prices for the month that is going to drop out of the calculation
As per explained above on the calculation of the PQP, you realise COE bids that will become more than 3 months old are excluded from the calculation.
Example: As we go into the month of September, the months used to calculate September are June, July and August. May bids are no longer included in this calculation. So, if it happens that you have a car expiring in October, the June bids are not included in the calculation. If the June bids are high, then congratulations! You are likely to be paying a lower PQP for October! That is, by the way, our estimate for Cat A October PQP – it will be lower than September 2018 PQP.
Understanding this fact, also means you should be looking at:
COE prices for the next month’s bidding
Next month is September 2018, we are looking at the current situation and expect bidding to have a stable price with equal up and down possibilities of a small magnitude of +/-$1500.
That being the case, our estimate for the Cat A PQP for October is at approximately $1080 lower than for September. Will we be right? Let’s see
How do you get a grasp of the feel for the next two coming bids? Well, it comes with looking at the market conditions and playing with these figure day in and day out, giving advice to our customers.
Professional PQP Monitoring
The above are just a short brief of what you can look at when monitoring for your PQP to get the most advantage.
But what if the difference in the PQP between months is small like at $150 savings if you renew this month compared to next month which is the actual expiry date? Are you sure renewing this month is going to be an advantage to you? Not really, as you need to forfeit the remaining period of your current COE if you renew early! This and other situations can make renewal at the best time something too troublesome to learn for most car owners who do this only once in maybe 10 years! Besides, most car owners are busy professionals with no time to figure the nitty gritty of PQP movements!
Why not come to us to your COE renewal loan? We monitor this for all our customers as long as their vehicle does not expire in the current month (which leaves them no choice), so as to give them the advantage when COE renewal is done.
Why pay an admin fee to others who don’t give you an edge when it comes to renewal of COE?
Contact us using the form on the right or call (during office hours Monday to Friday) or Whatapp us at 92782880 so we can help you! You will understand why we are the best in this business.