COE Renewal In June 2020 | No Prediction Required
COE for cars and other vehicles continue to expire through the months of April, May and June 2020, and yet the COE bidding for the months of April and May 2020 have been suspended. May bidding counts towards June 2020 COE renewal PQP price, and so we again do not have any moving average for COE renewal for the month of June 2020. And so what is the price?
Stagnant COE Renewal Prices
You can find the suspension of COE bidding and the resulting stagnant renewal prices specifically mentioned on Onemotoring.com.sg but here it is for your convenience:
Decline In Prices Expected, But Change in Policy
A flat line. how dull.
Especially for those who were looking forward to a decline in price, which we also foresaw due to the poor economic sentiment. This expected decline however, will be delayed as the COE bidding has been put to a halt by LTA. (Note: This decline though we expected, may not materialize as LTA will tweak policies – see below)
And with the halt, though a we wrote in early in April for a two month average to be used for May PQP instead of the three month, LTA has decided that they will use a constant price instead. Two month average would have been good for owners with May COE renewals and also given a logical way to calculate prices for June PQP if COE bidding had restarted in May, but we can see why they chose their position now that the Circuit Breaker (CB) has been extended for one more month.
We cannot blame the LTA for that choice, for the car showrooms are closed and so that would negatively affect the bidding prices for sure, with car distributors trying to sell without meeting customers – I can only imagine the challenges of that and how many sales that has brought about.
Play By Ear Policy Adjustments
And LTA continues to take a wait and see approach as to what happens to car owners and how to administer the COE renewal and COE bidding. Given that we all do not know if there would be further extensions to CB, this is something they cannot avoid doing.
This CB is creating much uncertainty on how to administer the COE when it does get lifted. Many of the tricky issues with COE bidding restart was highlighted in our earlier article. Take quick look at the old article and you will find there are quite a number of considerations there.
Hiccups Renewing COE during May 2020
Individuals and car finance firms had run into issues with LTA announcing May 2020 PQP prices for COE renewal, but not being able to select online the choice of renewal month for May during the later part of the month of April 2020 – which is usually allowed after the PQP results for the following month can be calculated with the six bid average.
This, LTA said, was a software issue that needed to be reprogrammed as the system needed to be changed from it’s pre-programmed three month average automatic calculation.
LTA will not doubt be receiving quite a number of email appeals for those who lost time on their COE for now being able to renew in the month of expiry due to COE renewal loan payment processing time. (It’s a technical issue – there is a bottleneck for online renewal payment amounts due to bank online funds transfer limits). For those not aware, LTA is closed to all visitors during CB, the gates are locked and so there is no possibility of payment by cashiers order at the counter.
What Happens To Cars With COE Expired More Than One Month?
We have had customers whose cars have expired during this CB asking if they have been given any automatic extension of the COE renewal, and while LTA has given leeway on the scrapping of the car, for COE renewals, there has been no extension of relaxing of the requirements to renew within one month of the expiry date.
If the car goes past that one month after expiry day, it’s goodbye and off to scrap. This has been made clear and through the appeals of some individuals who have tried.
Their official stand is that you may appeal, but what we are seeing is: no chance.
Leeway has been given for seal inspection on OPC cars, vehicle inspections for road tax and disposal of vehicle after expiry date – since scrap yards and exporters are non-essential services – but the stand on COE renewal grace period of one month cannot be extended. So, if your expiry date is coming…
Common Misunderstanding for COE Renewal Price
The public that calls up for COE renewal often do not understand that when they renew in the time after their COE renewal, they are able to pay the following month’s price, or start their new COE in the month after expiry.
And maybe that’s what they want now, since the car is hardly used during the CB period – save COE and park the car for until CB is over!
This is why we see quite a few who allow their cars to expire hoping for an added advantage.
However, they will find that they are shortchanged instead!
LTA will start your new COE from the last day of your old COE and the period you have parked the car is still counted as used. Also, you have to pay the price of the PQP for the month of expiry, and cannot pay the (maybe lower, when PQP starts moving again) price of the month after the COE expiry!
So there is no advantage at all!
If in doubt, ask us!
Want to know why interest rates are not all that important for your car loan? Want to know why banks have near free access to funds and yet in-houses offer lower rates?
We Are Still Here For You
We are still operating during this CB time, and you’re just a call or Whatsapp click away from us! Feel free to contact us for any queries on COE renewal car loan – whether for over-loan amount, lack of income documents, which month to renew, outstanding balloon sum on old car loan. We can help you with them all!