6 Things You Need to Know Before Renewing Your COE
Possessing a car in Singapore can be an expensive. Even with the COE prices being lower than usual, car owners may rather choose to get their COE renewed rather than investing in a new vehicle. Here are 7 things you need to know if you are planning to renew your COE when it expires.
- Renew Your COE or Get a New Car
After the 10 years mark, car owners will need to decide either to renew their car COE or to get their cars scrapped. If the condition of your car is good, it may be a sound decision to renew your COE. Renewing your car’s COE will always be more financially accessible than buying a new car, as you will only pay the cost of the new COE. Therefore, the resulting depreciation over the next 10 years will be significantly lesser than that of a new car.
- Difference Between 5 or 10 Years Car COE
It is important to note that there is no limit to the number of times you can renew your car COE in 10-year period. This means that if you were to renew your for another 10 years. You have the option to renew your COE for another 10 years when it expires at the 20th year mark. If you are not confident that your car can last more than 15 years, go for a 5 years COE renewal instead. However, the car has to be scrapped after the end of the 5-year term.
- Not Forgetting Road Tax Surcharge
Cars that are over 10 years old have a road tax surcharge that increases by 10% each month until the 14th year. Subsequently it is stagnant at 50% per year till the end of the COE cycle.
- The Available Options to Finance Your COE Renewal
Not many people know this, but financial institutions like MoneyMax Leasing offers friendly COE loans, whether it is for a 5 or 10 year COE car renewal. The typical tenures for loan repayments are up to 7 years.
- Renewing Your Car Insurance
It is critical to renew your car insurance after your car COE renewal. A major misconception by most car owners is that car insurance premiums are higher than that of new cars. This is not entirely true as there are fewer car insurers for cars that have passed the 10th year mark, and these car insurers tend to charge higher premiums for new car owners due to the complex insurance coverage policies.
- Keeping Your Car in Great Condition for Another Five to 10 Years
Once you have made the decision to renew your car COE, it is crucial to ensure the health of your car and keep it in good condition. Send your car to a workshop for a full detailed inspection.
In retrospect, if you have decided to take a five or 10 years car loan. MoneyMax Leasing is no doubt your well-trusted financial institute to consult. Our friendly sales consultants are extremely professional and insightful. Feel free to contact us.