5 cars in Singapore that are worth renewing COE for

Yes, we had an article that explained how renewing the COE of your car might be a fatal mistake.

However, if you have read the article, you would have known that it doesn't apply to all cars in the market, as with all kinds of decisions, there are pros and cons to consider, and the best course of action is undoubtedly the one where the former outweighs the latter.

So how do you determine what's a good car for COE renewal?

Factors to consider when choosing a car for COE renewal:

1. PARF rebate

When you deregister a car in Singapore towards the end of its COE, you will be eligible for a PARF rebate of 50 per cent of the ARF paid (the ARF is derived from the car's Open Market Value). When you choose to renew the COE, you will be forfeiting this sum of money, effectively adding to the depreciation of the car.

2. Engine capacity

The road tax of cars in Singapore is derived from the engine capacity. Additionally, cars that are over 10 years of age is subjected to an increasing surcharge of 10 per cent per annum up till a maximum of 50 per cent on the 15th year (effectively 150 per cent of the car's original road tax amount). It will make little sense to renew the COE of a car with 6000cc.

ALSO READ: COE renewal after 10 years: Should you even bother?

3. Parts availability

Parts availability can be a headache for older cars that have long stopped being produced, the problem gets worse with rare and uncommon cars. Hence renewing the COE of a common car with great parts support will make more sense here.

4. Desirability

Much like choosing what new car to buy, the car must be good. The lower cost of a COE-renewed car can also mean that you will be able to enjoy a car that was much more expensive or when new. Imagine being able to drive a luxurious European sedan with an annual depreciation that is less than $10,000!

Calculations are based on the following:

July COE PQP: $46,896

Renew 5 years COE (50 per cent of PQP): $23,448

Honda Jazz 1.3 A

You won't go wrong with an economical hatchback in Singapore - the city environment makes these cars the perfect choice here. Since the first iteration, the Honda Jazz has been a favourite around this part of the world, this second-generation Jazz offers increased space as well as a smoother and quieter ride than before.

It is also economical to run, being reliable, cheap to maintain, low priced as well as having a low road tax thanks to its 1.3-litre engine.

Despite its small footprint, the Jazz packs in 384 litres of boot space with full passenger capacity, excellent for a hatchback of this size! The low PARF rebate and used pricing of the Jazz makes it a smart pick for COE renewal. It is also one of the winners in the 2010 SGCM Car of The Year awards.

Used price before COE renewal: $13,800 - $21,000

Used price with 5-year COE renewal: $37,248 - $44,448 (5-year COE) / $60,696 - $67,896 (10-year COE)

Forfeited PARF rebate: $8,370 - $9,971

Annual depreciation after COE renewal (for new owners): $6,070 - $8,890

Annual depreciation after COE renewal (for existing owners): ~$4,690

Annual road tax: $590, with a 10 per cent increase every year

Toyota Corolla Altis 1.6A

The ever-so-loved Toyota Corolla is arguably the benchmark for cars in the sedan category. It has always been the people's go-to sedan, with more than 37 million units sold internationally since its introduction in 1966. This economical sedan is well-known for its reliability, practicality, and comfort. Hence, it is often the preferred choice of car for first-time owners.

The Toyota Corolla Altis comes in two main variants, the 1.6-litre, and the 1.8-litre model. The latter variant is less popular among consumers due to its more expensive road tax and COE premium. Regardless, the Corolla Altis' low PARF rebate makes it a good pick for COE renewal.

Used price before COE renewal: $20,800 - $23,500

Used price with 5-year COE renewal: $44,248 - $46,948

Used price with 10-year COE renewal: $67,696 - $70,396

Forfeited PARF rebate: $7,216 - $7,551

Annual depreciation after COE renewal (for new owners): $6,770 - $9,390

Annual depreciation after COE renewal (for existing owners): ~$4,690

Annual road tax: $742, with a 10 per cent increase every year

ALSO READ: COE premiums rise across all categories on eve of COE supply drop

Toyota Wish 1.8A

When the Toyota Wish was first introduced in Singapore in 2006, it instantly succeeded and ousted its rivals - The Honda Stream and the Mazda 5 (Even with both their combined sales). Its success is due to the modern design and practicality of it as an MPV. Unlike the first generation of the Wish, the second generation introduced in 2009 has two main variants (1.8-litre and 2.0-litre).

Are you worried about it being an underpowered MPV? Fret not. Coupled with Toyota's 7-speed (A) CVT transmission, the Wish has an ample power output of 141 bhp with 173 Nm of torque, and 158 bhp with 196 Nm of torque for both variants, respectively.

Unfortunately, the Toyota Wish has been discontinued and replaced by the Toyota Prius+ hybrid. Well, that is a sign for both existing and prospective owners to renew the COE of their Toyota Wish.

Used price before COE renewal: $13,200 - $22,800

Used price with 5-year COE renewal: $41,250 - $50,850

Used price with 10-year COE renewal: from $69,300 - $78,900

Forfeited PARF rebate: $10,752 - $11,122

Annual depreciation after COE renewal (for new owners): $6,930 - $10,170

Annual depreciation after COE renewal (for existing owners): ~$5,610

Annual road tax: $976, with a 10 per cent increase every year

Volkswagen Golf 1.4 TSI

This is an ideal hatchback for younger consumers seeking a stylish, practical, fuel-economical, yet efficient vehicle - all of which the Volkswagen Golf possesses, making it an excellent choice for COE renewal. This generation of the iconic hatchback previously bagged the premium award for SGCM Car of the Year 2010 (Hatchback category).

Unlike its sporty counterpart - The Volkswagen Scirocco, this iconic 5-door hatchback comes with a turbocharged engine instead of a twin-charged engine. Its ability to produce a power output of 120bhp and 200Nm of torque mated to a 7-speed DSG gearbox allows for an effortless acceleration whenever required. Despite its powerful output, it comes with an affordable road tax due to its 1.4-litre TSI engine.

Used price before COE renewal: $20,800 - $27,900

Used price with 5-year COE renewal: $44,248 - $51,348

Used price with 10-year COE renewal: $67,696 - $74,796

Forfeited PARF rebate: $11,160 - $13,877

Annual depreciation after COE renewal (for new owners): $6,770 - $10,270

Annual depreciation after COE renewal (for existing owners): ~$4,690

Annual road tax: $620, with a 10 per cent increase every year

Kia Cerato Forte 1.6A/1.6M

The Kia Cerato Forte undoubtedly paved the way for the Korean mid-sized sedan segment. It is unlike most Asian cars out on the market. It is well-known to be a pseudo continental car as it bears a resemblance to continental cars of the same period.

The Kia Cerato Forte has two main variants. The 1.6-litre variant is offered either in the baseline EX trim or the premium SX trim, while the 2.0-litre variant comes with the SX trim. Both variants are available in automatic and manual transmission.

For a mid-sized sedan, it comes with a generous boot space of 415-litre, which is only 10-litre shy of the Toyota Camry, a luxury sedan. Furthermore, the Cerato Forte is one of the more performance-inclined sedans out there in the market. The 1.6-litre 6-speed transmission can push out 124 bhp and 156 Nm of torque, while the 2.0-litre 6-speed transmission pushes out 156 bhp and 194 Nm of torque.

However, if you feel the aesthetics of the Cerato Forte is still not sporty enough for you, the Kia Cerato Forte Koup is the answer to your woes. With similar performance capability, the Koup is the sporty alternative to the forementioned Cerato Forte. It comes only in the SX trim and features a sporty two-door design.

Used price before COE renewal: $12,500 - $16,800

Used price with 5-year COE renewal: $35,948 - $40,248

Used price with 10-year COE renewal: $59,396 - $63,696

Forfeited PARF rebate: $4,585 - $5,407

Annual depreciation after COE renewal (for new owners): $5,940 - $8,050

Annual depreciation after COE renewal (for existing owners): ~$4,690

Annual road tax: $738, with a 10 per cent increase every year

All prices are accurate at the time of writing. Used prices are based on SGCM used car listings.

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This article was first published in sgCarMart.