Mr Gay Eng Joo renewed the certifi-cate of entitlement (COE) for his Honda Civic Type R not long after his wife Ng Whey Whey did so for her Mazda 3.

“From a cost viewpoint, it’s a no-brainer,” Mr Gay, 46, says. “A new car will cost a lot more.”

The extension cost him around $68,000 – $52,473 for the COE and $15,638 for the foregone Parf or scrap rebate. A new Civic Type R costs more than $180,000.

The engineer adds that most cars are able to last more than 10 years if they are well maintained.

“Unfortunately, most people have a preconceived notion that they need to replace their car by the 10th year. So they slacken their car care from the seventh or eighth year. These cars then become ‘unextendable’ as a result.”

The mindset is understandable, given Singapore’s car taxation sys-tem. Firstly, each COE lasts 10 years, which motorists can renew by paying the prevailing quota pre-mium. Secondly, those who keep a car beyond 10 years forgo its scrap rebate, which is at least half its open market value (or cost before taxes).

Indeed, Singapore’s car popula-tion is young because of the COE system, which was introduced in 1990.

By 2006, 66 per cent of passenger cars here were under three years old and 85 per cent of them were un-der five years old. Then, the average age of cars in, say, Japan, was six years. In the United States, it was 10.

But things began to change that year. On the back of a huge COE sup-ply, premiums slid to well below $20,000. When the global financial crisis hit in 2008 to 2009, they plummeted to as low as $2 and $200 for smaller and bigger cars, re-spectively. Consumers were able to buy a Japanese family car for less than $50,000 and a German luxury sedan for less than $150,000.

But when these cars approached their 10th year, new car prices had more than doubled as COE supply dwindled.

Teacher Soonam Suneeth, 55, re-members that well. She renewed the COE on her Toyota Mark X in January. “When we bought the car 10 years ago, we paid $88,000 for it. COE was $10,000. But in January (this year), COE was $52,000 and the same car would have cost well over $100,000.”

She says the car, which has clocked 175,000km, has been trou-ble-free and the only thing she has had to replace was the blower for the air-conditioner.

“If it had given us a lot of prob-lems, we would have given it up.”

After renewing the COE for an-other 10 years, she replaced the dashboard, which had some cracks on it.

“We may change the upholstery too,” she says.

Many other car owners have taken the same route since 2015 – the year when car COE revalida-tions started to balloon. That year, close to 10,000 did so, more than four times the previous year’s num-ber.

Last year, that figure grew to al-most 30,000 and there is no sign of the trend slowing down this year.

Logistics manager Henry Ho, 60, who drives a 12-year-old Toyota Wish, explains: “It’s a dollar-and- cent consideration.”

He bought the car early last year

from his mechanic for $11,000 and paid $46,000 for the COE renewal. Then, he spent about $3,500 replac-ing parts such as tyres, drive shaft and hydraulic pumps.

“It’s not as good as a new car. Fuel consumption and road tax are a bit higher. But it’s a lot cheaper than a brand new Wish, which would have cost $110,000,” says Mr Ho.

Not everyone chose to renew for 10 years though. The majority re-newed for five years, paying half the cost of the prevailing quota pre-mium.

Ms Ng was among them. The 42-year-old regional director of a media company says she chose a five-year extension on the advice of her mechanic.

She says she chose to keep her old car for “prudence and practicality”.

“If my young son dirties the car or if I go over a bump too fast, it’d be ‘oh’... with a new car, it’d be ‘ouch’.

“And rather than buying a used car, I wanted to stick with some-thing I know.”

Bread-and-butter cars are not the only ones being renewed. Nearly 40 per cent of renewals are for big-ger, more premium models.

Retiree Brenda Peck, 61, ex-tended the COE on her Mer-cedes-Benz E200 NGT in June last year.

“The car is still in a very good con-dition. And the mileage is so low, at less than 150,000km,” she says. “It’d be such a waste to get rid of it.”

She says the only parts she has re-placed are the brake pads – once.

Businessman Derek Han, 46, has just renewed the COE on a high-powered Subaru Forester STi he bought last year.

He plans to do the same for his Honda Accord Type R and Volvo V50 T5 when their COEs run out next year.

To prepare the Forester for its next 10 years, he has stocked up on $10,000 worth of wear-and-tear spare parts, in case they run out.

He has renewed the COE on his motorcycles too (he has 12), includ-ing a pair of 35-year-old Suzuki Katanas.

Motor industry players are notic-ing the trend. Mr Joey Lim, manag-ing director of automotive work-shop Harmony Motors, says busi-ness from older cars peaked last year, with most customers choos-ing to replace parts such as shock absorbers, suspension lower arm and rubber parts such as engine mounts.

Mr David Siew, managing direc-tor of leather and infotainment spe-cialist Tomo-CSE, says although the bulk of his clients are car dealer-ships, he notices a rise in retail cus-tomers, including those who are sprucing up their COE-renewed

cars. “We are renovating to target this group of customers,” he says.

The COE renewal trend has also changed the age profile of Singa-pore’s car population noticeably.

Today, 11 per cent of cars are over 10 years old, up from 7 per cent in 2006.

And only 43 per cent of cars are under five years of age, down sharply from 85 per cent in 2006.

Experts are divided on whether this is a positive trend.

Singapore University of Social Sci-ences economist Walter Theseira says it may lead to poorer air quality as “older cars are built to older emis-sion standards, which permit a higher amount of pollutants than current emissions standards”.

But he admits diesel cars, which are rare here, are more of a concern in this aspect.

He adds the trend might have “some effect on COE quota volatil-

ity over time” and could even “con-tribute to the ‘peak and valley’ (fluc-tuating quota size) issue”.

Nanyang Business School Ad-junct Associate Professor Zafar Momin, however, says the trend “could potentially smoothen the volatility of COE quota supply”, a view which many motor dealers share.

He adds that overall, revalidating a COE is a more sensible option than buying a new car.

“Holding on to your old car may be environmentally more friendly than buying a new and more fuel-ef-ficient car,” he notes.

“Studies indicate that the carbon footprint of manufacturing a new car is quite significant and could tip the balance in favour of retaining an old car, even if it is less fuel-effi-cient.”

christan@sph.com.sg

motoring motoring

Should you keep your car beyond 10 years? The answer depends very much on its condition.

If it has been fairly trouble-free in its first 10 years, chances are that it will continue to be so in its next 10.

If you decide to extend the COE, there are wear-and-tear parts which you need to pay attention to.

Motoring writer Shreejit Chan-garoth says these might include the suspension, brakes, engine, cooling system, transmission, electricals and cosmetic touch-ups of the inte-rior and bodywork.

“Most importantly, you must try not to save on any repairs, replace-ment or overhaul even if the compo-nent in question has not shown any symptoms of impending failure,” says Mr Changaroth, who is an engi-neer and also writes for motoring magazine Torque.

“Avoid using second-hand or used parts. This way, major mechan-ical problems can be prevented and you may not even have to face mi-nor issues.”

But, of course, you do not need to replace them if they are obviously not worn. To determine what needs to be replaced, you can send your car to a trusted workshop or a vehicle inspection centre.

Mr Kiew Kheng Hin, assistant vice-president of vehicle mainte-nance and crash repair at Comfort-DelGro Engineering, says his com-pany has been getting more requests for vehicle checks by owners who are planning to renew their car COE.

“In fact, to encourage such safe driving practices, we are offering a free ‘COE health check’ promotion.”

He recommends that vehicle owners check the engine and gear-box, undercarriage such as suspen-sion shock absorbers, brake sys-tem, engine mountings, as well as charging system alternators.

From February to May this year, ComfortDelGro Engineering carried out health checks for close to 100 ve-hicles. About one-fifth of these were repaired by the company, with each bill averaging $2,000.

Once fixed, a car will easily carry on for another 10 years. If the work is properly done, there is no reason why it should not drive as well as a new car, or be as fuel-efficient.

Motorists should also be aware that they forgo a car’s scrap rebate, or Parf (Preferential Additional Reg-istration Fee), if they keep it be-yond the 10th year.

For this reason, it is more econom-ical to extend for 10 years rather than five.

Also, road tax for older cars goes up, hitting a maximum of 150 per cent by the 15th year. Mandatory ve-hicle inspection also becomes more frequent.

As for insurance premium, there is no reason why insurers should charge more for older cars. In fact, their risk is low, considering the cost of an older car is essentially its COE value. Shop around if your in-surer wants to charge more for your old car.

PHOTOS: AZIZ

HUSSIN FOR THE

STRAITS TIMES, LAU

FOOK KONG,

COURTESY OF

SOONAM SUNEETH

If my young son dirties the car or if I go over a bump too fast, it’d be ‘oh’... with a new car, it’d be ‘ouch’. And rather than buying a used car, I wanted to stick with somethingI know.

’’REGIONAL DIRECTOR OF A MEDIA COMPANY NG WHEY WHEY (left, with her husband Gay Eng Joo, six-year-old son Ewan and their Mazda and Honda) on why she renewed her car’s COE

A surge in number of motorists renewing their car COE is slowly changing the age profile of Singapore’s youngish vehicle population

Don’t save on repairs and replacement works

Christopher TanSenior Correspondent

Going the distance

2017*2016201520142013

1,3162,758

88223795

Cars up to 1,600ccand 130bhp

Cars above 1,600ccor 130bhp

5-year 10-year

Source: LAND TRANSPORT AUTHORITYSTRAITS TIMES GRAPHICS

NOTE: * Up to June 2017** All cars, both �ve- and 10-year revalidations

7,78215,1815,881

997229

2,5584,3011,137500265

16,14329,5319,9192,244

773

2,6912,461

82718764

5-year Total**Average

per month

Average per month

10-year

4,4877,2912,019

510184

Revalidation of car COEs in recent years

0

500

1,000

1,500

2,000

2,500

3,0002,691*

2013 ’14 ’15 ’16 ’17

Extending the COE

The car is still in a very good condition. And the mileage is so low, at less than 150,000km. It’d be such a waste to get rid of it.

’’RETIREE BRENDA PECK (above), who extended the COE on her Mercedes-Benz E200 NGT in June last year

OLD IS GOLD

When we bought the car 10 years ago, we paid $88,000 for it. COE was $10,000. But in January (this year), COE was $52,000 and the same car would have cost well over $100,000.

’’TEACHER SOONAM SUNEETH (above, with her architect husband Suneeth Changaroth, 61), who renewed the COE on her Toyota Mark X in January

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