Should I renew my car COE? Is it worth it or should I buy a new car?
Renew car COE or scrap and buy a new car?
Renew car COE (Certificate of Entitlements) or do I scrap / deregister it? Buy a new car or rent one instead? Most modern cars are designed and engineered well to last more than 10 years of COE so an additional new choice is to renew your car COE. As cars are so expensive in Singapore, you should consider all your choices.
For all current car owners with their vehicles nearing their end of 10 years COE, here are their few choices:
Scrap / De-register the old car and buy a new car
This is, by far, the default choice for most Singaporeans who love to spend and possess new stuff. For many families with children, you may love the convenience and feel of a new car. Similarly convenience is a major factor for those who need to drive for work (insurance, property agents and most corporate sales people) or drive to far places for work (Tuas, Lim Chu Kang or maybe Jurong Island etc). Some people also enjoy driving a new car as he has lower costs such as free parking (most school teachers and industrial estate staff) or work night shift.
This is also an expensive option. A new car costs more than $100,000 onwards, and requires a large down payment. The good news is car loans are competitive and you can get good interest rates from all major banks and even better rates from Timely Enterprise. Look out for good deals on internet, nowadays, there are even car sellers on carousell marketplace app.
You also have to account for costs such as road tax, car insurance, regular maintenance, parking fees and occasional breakdown repair costs.
Renting a car instead
If you do not need a car for everyday work, only for occasional work situation or leisure time with the family, consider renting a car instead. You can rent a car easily nowadays from any car rental agencies. You may also rent on a monthly, quarterly basis if you need a car for long term but prefer not to buy one. This option saves you the hassle of maintaining the car, and you do not need to pay upfront a downpayment.
An additional bonus is you can get to change a new car model occasionally whenever you switch rental car! For terrific car rental options, you can refer to many car rental agencies that are giving promotions.
Renewing your COE for 5 years or 10 years.
Please note that if you renew your car for 10 years COE, you can renew it AGAIN after the cycle ends. If you renew your car for 5 years COE, there is no more renewal once the 5 years COE expire.
To renew your COE for 10 years, you pay 100% of the Prevailing Quota Premium (PQP) and renew it for 10 years.
If you opt for 5 years COE renewal, you only need to pay 50% of the prevailing quota premium (PQP) and renew COE for 5 years.
Based on rough estimates in 2017, a renewal of COE for 5 years would cost you roughly $25,000 in PQP and about $50,000 in PQP for a 10 years renewal.
PQP Calculations (Prevailing Quota Premium)
PQP does not depend on the last immediate COE bidding prices, but actually on the moving average of the past COE prices in the last 3 months. This is to provide more stability and consistent, as explained by LTA. You can click for LTA’s prevailing PQP rate now or click LTA’s website to find out the current renewal COE rate.
Renewing your COE is most money for value as most modern cars are engineered to last more than 10 years. With decent maintenance, your car can operate well and suitable for another 5 or 10 years of use.
Your cost savings compared to a new car is obvious. You will face much lower monthly repayment for keeping your car instead of buying a brand new car that attracts very high profits for the carmakers. The downpayment necessary for the COE renewal is a also much lower than the downpayment required for a new car purchase.
It is also more cheaper and worthwhile than renting and you get to drive your own familiar car that you have been driving for the past decade.
The only issue is that as you are not buying a new car, you are not eligible to borrow a car loan from the banks.
COE Renewal Car Loans
In the past, people turn to personal credit and loans to get funding for the PQP COE renewal. However this is not advisable as such personal loans attract high interest rates! What you can do is to turn to COE Renewal Loan Specialist that can provide loans tailored for COE renewal and hence pay a much lower interest rate.
This is a lot more cheaper and value for money in the long run. You can break the big downpayment for COE renewal into monthly sums via COE Renewal loans because it is easier for expense planning. One of the lowest rate in the market is provided by Timely Enterprise, you can call James at +65 82003255 or email them at firstname.lastname@example.org for any enquires.
They will provide the renewal loan hassle free because they understand drivers want value and convenience.
So should you renew car COE?
For more expensive brands such as BMW, Mercedes, Audi, Jaguar, Range Rovers etc, the COE is only 20% to 30% of the total car price. Since the COE is a lower portion, it may be more value for money to extend the COE for such models.
For the more mass market brands, such as most Korean and Japanese brands, the COE cost is usually more than half of the total price. In these instance, the value of extending may not as obvious. You may want to consider whether your car is able to operate well to its 15th or 20th years. For most efficient Japanese car models, if you have been maintaining the car well, you will probably do well to extend the COE since their reputation for lasting is quite outstanding.
COE Renewal Loans
You may prefer to break it down to monthly payment because it is easier for your monthly expenses. Timely Enterprise can help with COE renewal by financing cheaply!
We try to provide the LOWEST interest rate in the market!
You can call James at +65 82003255 or email us at email@example.com for any enquires.
We will arrange for the renewal loan hassle free for you because we understand convenience is appreciated by drivers.