Understanding COE Renewal Financing in Singapore

Having a car in Singapore is a double-edged sword and unlike in most cases when you can avoid the edge that can cut you, having a car is really both a responsibility and a blessing. It can even be compared to owning a house or even caring for a child. The presence of various vehicle financial solutions in the market will immediately tell you how taxing having a car could be. When there is a solution, of course, there is a problem and the number of solutions, financial solutions, to be precise will entail the number of financial difficulties that are ever-present along with having a car. Hence, whether you are still planning to buy a car, in the midst of financing your car or already got one, understanding certain financial concerns regarding vehicles will save you in the long run. Today, we will share with you the things you need to know about COE Renewal Financing in Singapore and why is it important for car owners or future car owners like you.

What is COE Renewal?

If you are new to owning a car or are still planning to get your own car, COE might be something foreign to you. Certificate of Entitlement or COE refers to the official document that states your legal ownership of a vehicle in Singapore.

As part of the government’s initiative to control the production and distribution of private vehicles in Singapore, COE was implemented. It gives an individual the right to own a vehicle for a given period of time. Once that period of time passes, you will be required to renew your COE registration to still enjoy the right to drive your car. Hence COE renewal is an important task for car owners. Securing a renewal of your COE will guarantee that the price you pay for the car will not be wasted by the restrictions to keep it. Here are some more things you need to know about COE:

  • The Land Transport Authority or LTA opens bi-monthly bidding for COE registration. It is crucial for you to participate in the bidding process and secure a COE from it. It is also crucial to note that the LTA will announce the quota for COE bidding at the start of the program. Thus, you will get an idea of how many bids are left open for you throughout the program. Once you secure your COE, you can now pay for your COE that is effective for 10 years.
  • Once the 10 years pass, you will need to decide whether you want to deregister your vehicle or renew your COE. Of course, the wisest decision is to renew since 10 years could be a little too short to enjoy the amount of money you invest in buying the vehicle. However, some still chose to deregister due to having trouble meeting the financial obligations.
  • If you decide to renew your COE, you will have to pay for the prevailing quota premium or PQP. This varies depending on the type of vehicle you have.

As mentioned above, there are times when car owners are forced to give up their rights on their vehicles due to unforeseen circumstances wherein they will not be able to renew their COE anymore. This is such an unfortunate situation especially when you have finally held the keys to your long time dream car. Luckily, there are in-house car loan companies that offer financing options so you could renew your COE in times of great need.


How to find the best COE renewal loan?

Even when you feel like you are financially secured, it is always better to have the option to get financial assistance in case the unexpected happens. While there are many advertisements on newspapers and online platforms that offer COE renewal loans, you would want the best COE renewal loan you could get that is safe, affordable and reliable.

Today, there are two major options for you to choose from if you need a financing solution for your COE, that is to apply for a bank loan or to get the help of an in-house car loan company. These two offer not only a trusted and proven safe transaction but also offer the lowest interest rates among the loans available in the market.

For banks, there are various banks that offer specific COE renewal financing or you can also get their car financing loan depending on their existing policies. Most banks offer a competitive interest rate and a reasonable loan duration.

On the other hand, in-house car financing is an institution that helps car owners to secure their COE for occasionally lower interest rates compared to banks. More often than not, they also accept collaterals that will be fair for most car owners.


What are the things to consider before renewing your COE?

Are you still having doubts about getting a COE renewal or giving up the rights for your car? Don’t worry, we totally understand. Most of the time, the temptation of just giving up your car is there because public transportation is often dependable. Here are some things to consider to help you decide whether to renew your COE or not:

Your Eligibility for PARF Rebate

Keep in mind that if you keep your car longer than 10 years, you will lose your qualification for the PARF rebate, which would help you recuperate the cost of the Additional Registration Fee (ARF) you paid when you registered your previous vehicle. If your car is approaching its tenth birthday, you will be eligible for a PARF rebate of 50% of the ARF you paid. As a result, it’s critical to consider the PARF rebate you’ll likely forego as one of the costs of renewing your older car’s COE.

The Cost of Maintenance for Old Cars

The cost of maintaining your car will rise as it gets older, as more of its parts may need tuning or replacement after years of use. The amount you’ll pay in maintenance fees may vary depending on a number of circumstances; for example, you can expect to pay more to service a luxury automobile, a Continental car, a car with a lot of miles on it, and a car that hasn’t been serviced frequently for the first ten years of its life. You may also be faced with the exorbitant cost of replacing important automotive parts such as the transmission, which can cost thousands of dollars.

The Cost of Buying a New Car

How much you are willing or able to spend on a new car is also among the key considerations in deciding whether to renew the COE on your car or buy a new one. Most new middle-market cars will set you back somewhat more than twice as much as paying the PQP to renew the COE on your older vehicle. While you can minimize some of this expense by taking out a car loan, you’ll still need to put down a substantial sum for the down payment.

Hence, the decision to renew your COE or give up your car is still in your hands at the end of the day. However, if you find yourself wanting to enjoy your car a little more and needing some help, we offer the best COE renewal loan for you!