Before you renew your COE, you need to make sure your car is in the right condition to live through another 5 or 10 years. A brand new COE doesn’t come cheap that’s why it’s important that you put a lot of thought into considering whether a renewal is the best option for you and your car.
Below are some tips to help you determine whether you should renew your COE or scrap your car and buy a new one.
The most important thing you have to consider is your car’s overall health. Ask yourself whether your car is still roadworthy 5 to 10 years from now. If you’re not really sure whether your car can last you another 5 or 10 years, you can drive to the nearest auto shop and have a technician take a look at it.
When assessing your car’s condition, prioritize your safety. There’s no use in renewing your COE if your car poses safety risks that can put your life and the life of other people on the road in jeopardy.
Your Financial Situation
Even if you purchase a brand new car through financing, you still need to put down a certain amount as financing institutions are limited to loaning only 70% of the total market price. If you don’t have the financial capacity to pay the remaining 30% for a brand new car or even a second hand car, renewing your COE is the only option for you.
We urge you to visit the nearest LTA to get an accurate quotation on the price of a COE renewal based on the Prevailing Quota Premium. From there, you can assess whether it’s more economical for you to apply for financing on a brand new car or a COE renewal loan.
Let our loan specialists help you decide whether renewing your COE is the most economical option for you. Schedule a meeting with us by calling +65 6250 6696