In our previous post, 8 Things You Need to Know Before Renewing Your COE in Singapore (Part 1), we have shared with the reader on 4 points that they need to take note before renewing the COE. Today, Car Source will continue and share the other 4 things you should take note of.
william-stitt-179021

5.You can take a loan for COE renewal

Not many people know this, but there are banks and financial institutions that allow you to take loans to renew your COE. They aren’t that common, but a quick search reveals that some do offer loan quantum of up to 70% over seven years, at an interest rate of 3.25%, for COE revalidations. Financial institutions, such as Hong Leong Finance, Tokyo Century Leasing, and United Overseas Bank, may offer different rates so it pays to do your research.

CarSource offers a service to help owners who intend to renew their COEs to apply for the renewal loan. Just submit the relevant documents online to us and approval for the loan will be processed within days. All procedures can be done online as long as the required documents are sent via fax or email.

Generally, you could get approval for a loan to cover the entire COE renewal amount. The typical tenures for loan repayments are 59 months for five-year renewals, and 83 months for 10-year renewals and interest rates can range from 3.25 to 4.75 percent. For COE renewals made through finance companies, there will be an additional transfer count added to the vehicle (that is, it will be deemed to have changed owners).

6. You can still renew your COE after it has expired

You can actually renew your COE up to a month after it has expired, and should you choose to do so, you will need to send in an application request at the LTA’s Customer Service Centre. Payment through this method can only be made in cash, cashier’s order or NETS, and there are late payment fees apply depending on the type of vehicle you are renewing the COE for.

If you choose to do it before the COE expires, however, you can send in your application online through Internet banking via the LTA’s website, or send the payment out by post. This has to be done at least two weeks before your car’s COE expiry.

7. You will forfeit the remaining balance of your COE rebate upon renewal

Aside from the PARF value, the LTA also offers a rebate on any ‘unused’ value of your current COE if you deregister it before the full 10-year tenure is up. However, should you renew your COE before it reaches its expiry date, you will forfeit any COE rebate that you are eligible for.

It is for this reason that most people tend to renew their COEs very close to the expiry date, or even on the day itself, in order to minimise the ‘loss’ of this rebate. However, as mentioned in point 6, you can also choose to renew your COE after it has expired as well.

You will need to pay the PQP

Should you decide to go ahead and renew your car’s COE, then what you need to do is to pay the PQP, which is the moving average of the COE prices over the last three months. You can enquire the current PQP rates here. For vehicles, which have a Category E Open COE, your PQP will be based on the respective category that your vehicle belongs in (Category A, B or C).

For owners of cars under the Weekend Car (WEC), Off-Peak Car (OPC) or Revised Off-Peak Car (ROPC) scheme, you will have to pay the PQP of the relevant normal car category. There will be no discount or rebate given for renewing the COE of such cars, and it will remain as a WEC/OPC/ROPC upon renewal. However, you can subsequently convert it to a normal car without having to top-up any rebate back to the LTA.

8. You can get comprehensive insurance coverage for a COE car

It is possible to attain comprehensive insurance for COE renewed cars, although they may be harder to source for. A common myth is that COE-renewed cars (or COE cars) are ineligible for comprehensive insurance coverage. In actual fact, it is actually possible to get comprehensive insurance for such cars, although it is indeed harder to the source. AXA, for instance, will not take in cars older than 25-years old, while others like NTUC Income, MSIG and Tokio Marine will offer comprehensive cover for cars older than 10-years only on a case-by-case basis.

markus-spiske-197279There simply isn’t as much demand for comprehensive insurance for COE cars as many owners deem it unfeasible to pay a hefty premium, which is disproportionate to the value of the car. Insurers themselves are also reluctant to offer anything more than just third-party insurance (which covers claims by third parties only) for older cars, as they deem them to be more problematic and more susceptible to claims.

NTUC Income also explained that older cars have ‘little market value’, and that should the car be involved in a major accident, the tendency is for insurance companies to write off the car totally rather than paying out for the repairs as the car’s market value may not be worth much more than the residual value (the amount of renewed COE remaining).

However, if you take a loan for COE renewal from some finance companies, they may require that you obtain comprehensive insurance cover for your car as part of their terms and conditions.

Conclusion

For many car owners, once your car reaches the 10th year mark, deciding between keeping your beloved car and buying a brand new one can be a stressful dilemma.

The fluctuating Certificate of Entitlement (COE) prices and complicated COE bidding surely makes it sounds very daunting.

However, at Car Source, we offer affordable COE loan interest rates where you can continue to keep your beloved car. Look no further for a COE renewal loan in Singapore that can help you retain your car on the road. We specialise on both private and commercial vehicle COE loan, Contact Us today.

With our competitive COE loan rates, we are more than confident that you’ll get the lowest monthly payment possible. We are the first company in Singapore to offer COE Renewal Loan and is considered the most trustworthy auto finance industry expert.