What Is the Difference Between PQP and QP?
If you are navigating Singapore’s COE system, two acronyms appear constantly: QP (Quota Premium) and PQP (Prevailing Quota Premium). While they sound similar, they serve entirely different purposes. QP is the price you pay when you bid for a new COE. PQP is the price used to calculate COE renewals.
Understanding the difference can save you thousands of dollars — especially if you are deciding between buying a new COE or renewing an existing one.
QP — Quota Premium
The Quota Premium is the outcome of each COE bidding exercise. Here is how it works:
- The LTA opens a bidding window for each category with a fixed quota of COEs.
- Bidders submit their reserve prices (the maximum they are willing to pay).
- At the close of bidding, the system ranks all bids from highest to lowest.
- The lowest successful bid becomes the QP for that exercise.
- Every successful bidder pays this QP, regardless of their individual reserve price.
The QP changes every bidding exercise (twice a month). It reflects current market demand and can fluctuate significantly from one exercise to the next.
PQP — Prevailing Quota Premium
The Prevailing Quota Premium is a moving average designed to smooth out volatility. It is calculated as:
PQP = Simple average of the QP from the last three bidding exercises (for the same vehicle category)
The PQP is updated after each bidding exercise and is primarily used for:
- COE renewals — The PQP determines how much you pay to renew your COE for 5 or 10 years.
- Budget planning — Because the PQP is an average, it is more stable than the QP and gives a better indication of medium-term COE prices.
Key Differences
| Factor | Quota Premium (QP) | Prevailing Quota Premium (PQP) |
|---|---|---|
| Definition | The final price set by each bidding exercise | The 3-month moving average of QP |
| Calculation | Lowest successful bid in a single exercise | Average of last 3 QP values |
| Updated | Twice per month (after each bidding exercise) | Twice per month (same schedule) |
| Used for | New COE purchases via open bidding | COE renewals (5-year or 10-year) |
| Volatility | Higher — can swing S$5,000+ between exercises | Lower — smoothed by averaging |
| Predictability | Low — depends on bidder demand each cycle | Moderate — trends are more stable |
Why the Difference Matters
If you are buying a new car, you need to bid in the open market, and the QP determines your cost. You cannot use the PQP to purchase a new COE.
If you are renewing your existing COE (for years 6–10 or beyond year 10), the PQP determines your renewal cost. You do not need to bid — the PQP is the price you pay per year of renewal.
This distinction creates an important strategic choice:
- When QP is below PQP — It may be cheaper to buy a new COE (through open bidding) than to renew using the PQP. However, a new COE requires registering a new vehicle.
- When PQP is below QP — Renewing your existing COE is cheaper than buying a new one. This is common during periods of rising COE prices.
Real-World Example
In March 2026, Cat A had the following QP values:
- Exercise 1 (early March): S$91,000
- Exercise 2 (late March): S$93,000
- Exercise 1 (early April): S$92,000
The PQP after the early April exercise would be: (S$91,000 + S$93,000 + S$92,000) / 3 = S$92,000.
If you were renewing your COE in April, you would pay S$92,000 per year (or S$46,000 for a 5-year renewal). If you were bidding for a new COE, you would bid against the open market.
Which One Should You Track?
- Track the QP if you plan to buy a new car and bid for a fresh COE.
- Track the PQP if you plan to renew your existing COE or are budgeting for vehicle ownership costs.
For additional guidance, read our COE renewal vs scrapping comparison to see how PQP affects your renewal decision. If you need financing, explore COE loan options or apply online.
Frequently Asked Questions
No. For COE renewals, the PQP is the only applicable rate. You cannot use the current QP for a renewal — that rate only applies to new COE purchases through open bidding.
No. Each vehicle category (A, B, C, D, E) has its own QP and PQP based on bidding results for that specific category. They move independently.
The PQP is updated after each bidding exercise (twice a month) on the LTA OneMotoring website. The latest PQP values are published within hours of the QP announcement.
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