Back to Transport

COE Renew vs Replace Calculator

Compare ownership cost and cash needs over the same period. This model includes the value of the current car and separates replacement loan term from holding period.

Scope: current car is debt-free; renewal is paid in cash. Replacement financing is a fixed reducing-balance illustration. It does not reproduce flat-rate contracts, settlement penalties, future interest changes or lender eligibility. If funding renewal with a loan, add its costs separately before comparing.

Inputs

Defaults are hypothetical, not current PQP, resale or loan quotes. All amounts are Singapore dollars.

The selected term must cover the holding period.
Use a period corresponding to whole months.
The holding period cannot exceed this.
Debt-free car; include any rebate and body value already in the quote.
Insurance, road tax, fuel, parking, ERP and routine maintenance.
Enter the payment for the selected renewal term, not a current auction bid.
Include unused COE and body value once. At expiry there is no unused COE.
Average additional repairs, road-tax uplift and backup transport beyond the base.
Cash paid upfront, not also included in annual costs.
Price includes its existing COE.
Before loan settlement; include rebates already in the value.
Replacement minus base: negative means cheaper running costs.
Inspection, transfer and finance fees excluded from the price.
Use 100 for cash purchase; this is not an eligibility check.
Monthly interest rate = annual rate ÷ 12. Do not enter a flat-rate quote.
Independent of the holding period; 1–84 whole months.

How the comparison works

Renewal cost: current car value + premium + immediate repairs + running costs − exit value.

Replacement cost: price + upfront fees + interest paid within the holding period + running costs − gross exit value.

Monthly equivalents divide these costs by the months held. They are not instalments. The current car’s value is counted once: as an asset used by renewal, or as sale proceeds in the replacement cash plan. For both routes, resource cost minus current car value equals net cash outflow in this model.

The loan pays monthly over its own term. If the holding period ends earlier, only interest incurred to then is counted, and the outstanding principal is deducted from exit cash. If it ends later, loan payments and interest stop when the term ends. The model uses unrounded payments internally and displays cents; lender rounding may differ.

Worked default example

Over five years, renewal totals S$119,000, or S$1,983.33 a month. Replacement totals S$95,513.76, or S$1,591.90 a month, using the seven-year 3% reducing-balance assumption. The replacement loan payment is S$832.44, and S$19,367.48 remains at the five-year exit. See the full cost and cash reconciliation.

Before changing a scenario

For renewal rules and unused-COE examples, read Should You Renew COE?. MoneySense explains why flat and reducing-balance rates differ. For a flat-rate offer, use the car-loan calculator and the lender’s actual settlement schedule.

Frequently asked questions

Can I enter a flat-rate car-loan quote in the interest field?

No. This model uses a reducing balance and a monthly rate equal to the annual input divided by 12. Use a lender schedule or a tool designed for flat-rate loans.

Why does a shorter holding period leave a loan balance?

The loan term is separate from the time you keep the car. The remaining balance reduces exit cash; principal is not counted again as an ownership cost.

Does the renewal premium need to match the selected term?

Yes. Enter the actual premium for that term. The calculator does not fetch PQP or automatically halve a ten-year amount.

Can this model compare a car that already has an outstanding loan?

Not directly. It assumes the current car is debt-free. Add the actual settlement and any continuing debt costs to a separate cash and cost plan.

Sources & references

Last updated: 20 Sep 2026 · Editorial Policy · Advertising Disclosure · Corrections