Understanding PQP: How the Renewal Price Is Calculated
Learn how PQP uses prior bidding months, why it differs from the latest premium, and how renewal timing changes the amount and entitlement you receive.
PQP is the published price basis for COE renewal. It averages earlier quota premiums rather than requiring the owner to compete in a new bidding exercise.
The averaging window
The calculation uses the last three completed months in which bidding took place. Months without bidding are skipped. In the usual case with two exercises in each month, six premiums contribute equally.
For a hypothetical six-result sequence of $106,000, $108,000, $110,000, $107,000, $112,000 and $109,000, the total is $652,000. Dividing by six gives $108,666.67 before the published whole-dollar treatment. These values are an example, not the actual January–March 2026 sequence.
Why PQP can differ from the latest QP
One premium is a single exercise outcome; PQP includes older observations. In a rising market, earlier lower results can hold down the average. In a falling market, earlier higher results can keep it above the latest premium. Neither relationship is permanent.
PQP is not a floor for new bids. Nor is it inherently a bargain: compare the actual applicable renewal month with a complete replacement quotation.
Choose the right vehicle category and term
A vehicle originally registered using E renews using its corresponding category, not an E-specific PQP. For an ordinary car, five years costs half the ten-year PQP with the prescribed rounding, but the five-year renewal is final. The car cannot then be renewed again.
Timing changes more than price
Paying earlier can mean giving up unused original entitlement. Compare the commencement date as well as the quoted PQP. If the COE expires, LTA allows only a limited late-renewal window and a fee; the vehicle cannot be used while expired.
For the exact timing, term and refund examples, use the detailed renewal guide. Do not wait for a hoped-for lower month without checking the legal deadline and cost of lost use.
Use the number in a complete decision
Add repairs, running costs and the current disposal proceeds forgone by keeping the vehicle. If you deregister during the renewed term, unused entitlement can have a COE rebate; body value is separate. The renewed period has no PARF entitlement.
Check the PQP page and LTA renewal service for the actual month. A calculator’s estimate is helpful for planning, but the published payable amount and vehicle-specific conditions govern the transaction.
Sources and review date
Reviewed on 13 September 2026. Historical results retain their exercise dates; worked budgets are assumptions, not quotations.