Enhancements to the Early Turnover Scheme

News Releases 11 Mar 2014 Committee of Supply (COS) Early Turnover Scheme

Higher incentives from March 2014 to further encourage owners
to replace old diesel vehicles with newer, cleaner models

Scheme extended to April 2016 to give vehicle owners time to plan for vehicle replacement

  1. As announced by the Minister for the Environment and Water Resources and the Senior Minister of State for Transport during the 2014 Committee of Supply debate, the Land Transport Authority (LTA) and the National Environment Agency (NEA) will enhance the Early Turnover Scheme (ETS) by increasing the incentives to further encourage owners of Category C diesel vehicles registered before 1 January 2001 (predominantly Pre-Euro and Euro I models) to replace their old, pollutive vehicles with newer, cleaner models. The scheme will also be extended to April 2016 to give vehicle owners sufficient time to plan for vehicle replacement.

About the Scheme

  1. The ETS is one of the measures to reduce fine particulate matter emissions to meet Singapore’s 2020 air quality targets. It provides incentives in the form of:
  1. Allowing owners to transfer the unused COE period from their existing vehicle to their replacement vehicle; and
  2. A bonus COE period for the replacement vehicle, which is proportional to the existing vehicle’s remaining 20-year lifespan.

Thus, the earlier the existing vehicle is replaced, the higher the COE bonus, and the greater the extent/quantum of the unused COE life that owners get to transfer to their replacement vehicle. Vehicle owners therefore benefit from a lower upfront capital outlay when replacing their old vehicle. In addition, they only need to pay a discounted Prevailing Quota Premium (PQP) and do not need to bid for a new Category C COE. Please refer to the Annex for more details of the scheme.

Higher Incentives

  1. From 12 March 2014, the bonus COE incentive for the replacement vehicle will be increased as follows:

Maximum Laden Weight of Existing Vehicle

Current Scheme
(for existing vehicles deregistered before 12 March 2014)

Enhanced Scheme
(for existing vehicles deregistered on or after 12 March 2014)

Less than or equal 3,500kg



More than 3,500kg




  1. At 100% bonus for vehicles weighing more than 3,500kg, vehicle owners will thus essentially enjoy a one-for-one bonus for the unused 20-year lifespan of their deregistered vehicle i.e. for every year of unused lifespan, such vehicle owners will enjoy a bonus COE incentive of one year, instead of 0.3 years previously.
  2. As the enhanced incentives will be significant, there will now be a minimum payment of 10% of the PQP for a new COE for the replacement vehicle. The new COE would be for 10 years.
  3. To calculate the PQP payable for the replacement vehicle, vehicle owners can use the online enquiry, “Calculator – Early Turnover Scheme” to find out the discounted PQP. (At www.onemotoring.com.sg, go to LTA e-Services > Online Enquiries > Calculator – Category C Early Turnover Scheme). They can also look out for the letter from LTA informing them of their eligible vehicles and the potential benefits they can enjoy.

Extension of Scheme to end-April 2016

  1. To allow vehicle owners more time to consider the benefits of the scheme and make plans for vehicle replacement, the ETS will be extended by one year to end-April 2016.  Nevertheless, vehicle owners are encouraged to take up the scheme early as the COE bonus incentive would be proportional to the remaining lifespan of the existing eligible vehicle.
  2. Vehicle owners and motor dealers can call LTA at 1800-CALL LTA (2255-582) for enquiries on the ETS.

Annex: Factsheet on the Early Turnover Scheme. This includes how the PQP payable for the replacement vehicle is derived and how the value of the 10-year COE for the replacement vehicle is calculated.

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