After experiencing the convenience of possessing your own means of transport, it becomes exceptionally difficult to even imagine yourself having to wake up earlier than usual, catching the bus or train with the risk of being late for work. Now that your COE is coming to an end, here are 3 choices you may opt for upon facing this problem.
1. Scrap your car and get a new one
Scraping your old vehicle and purchasing a new one is the option that majority of the vehicle owners in Singapore will opt for. Definitely, the cost that comes with a brand new vehicle does not come cheap. Lucky enough, you may be able to offset the cost of the new vehicle if your current one has not reach the 10-years mark and contain some PARF value.
For a new set of wheels, an approximate of $100,000 is unavoidable, with at least $30,000 for the downpayment. Assuming that you have took up a loan for the remaining amount at an interest rate of 2.68%; this comes along with a monthly repayment of $990 for 7 years too. Undeniably, let’s not forget about the miscellaneous costs such as vehicle maintenance, insurance and road tax, naming a few.
The question is, do you have sufficient financial capability to scrap or trade-in your vehicle and purchase a new one? If not, what other less financial heavy alternatives can you seek?
2. Rent or lease a vehicle
Before arriving at this decision to rent or lease a vehicle, there are 4 main considerations to take note of:
If your answer is “yes” to any of the above questions, renting or leasing a vehicle may be a good choice for you. For a mid-range sedan, its monthly payment range about $1,600 to $2,000, inclusive of insurance, road tax, and a full vehicle maintenance. As for a high-end sedan, leasing costs range about $3,000 to $3,600 per month with the same benefits. If this monthly outlay is affordable, this is a possible solution.
3. Renew Your COE
Should the previous two options do not suit your liking; it boils down to the last option of renewing your COE. It is notable that through this choice, the remaining PARF value of your current vehicle will then be forfeited. To renew your COE, you will have to pay the Prevailing Quota Premium (PQP) which amount is dependable on the renewed COE term. For a COE renewal of 5 years, you will only have to pay 50% of the PQP. As for a 10 years COE renewal, you will have to pay the full amount of the PQP.
Renewing your COE brings you the best of both worlds, a cheaper selection compared to purchasing a new car or leasing another vehicle, and the ability to keep driving your own familiar set of wheels. Needless to say, this assumes that your vehicle is in a decent condition with regular maintenance and servicing, contributing to the likelihood of functioning optimally for the next 10 years.
The loan amount is dependable on your income as well, taking your financial condition and debts into consideration. If you are worried about the high interest rates provided by banks, take it easy! MoneyMax Leasing provides an interest rate as low as from 1.99% for both 5-years and 10-years COE renewal. We also provide 100% financing on the PQP amount.
For more information, you can check out our COE renewal service on our website or contact us at 6280 0808 (Call) / 8133 3568 (WhatsApp). You can also find out more at MoneyMax Leasing’s Facebook page here.
