44,303 Vehicle Owners Have Revalidated Their COE Last Year – Why Should You Do the Same?
Yes, you read that right, as per the Monthly Vehicle Statistics Report released by LTA, about 44,303 vehicles were revalidated last year. That’s about 18,251 more vehicles revalidated in 2016 as compared to 2015.
You might be thinking: Why do a lot of of vehicle owners renew their COE nowadays instead of buying a new car?
Here are some of the top reasons:
1. When you scrap your car, the PARF rebate is just too small, it does not really contribute much on the hefty down payment that you have to fork out if you opt to buy a new car.
2. New car prices usually range about S$90,000 to S$120,000 for middle-of-the-market cars. The cost is twice as much as the cost of just paying the PQP to renew the COE of your current car.
3. If you diligently do the maintenance of your car, you do not have to worry about how it will perform on the next 5 or 10 years. You get to keep all the investments that you’ve put on it and still use it for as long as you want, taking into consideration that you are renewing for 10 years and not 5 years.
4. After factoring in the scrap value of your previous car (which is forgone in a revalidation), the annual depreciation will be way lower, more or less about $6,000.
5. The cost of owning a COE-renewed car is cheaper, even after you factor in road tax surcharges, higher insurance premiums and maintenance costs.
6. New car prices are expected to go up soon due to the new VES scheme.
7. If you are in a situation where you only have a few cash to set aside for the monthly installment of your COE renewal loan, you can cut down your COE renewal cost by doing instead a 5-year renewal loan, that will help you save 50% of the PQP. It’s important to take note though that if you opt for a 5-year COE Renewal, you won’t be able to renew car’s COE anymore.
8. A 10-year revalidated car is usually more saleable. Should you decide to replace it midway, you will be able to find a buyer quite easily.
9. Sometimes, it’s a matter of personal preference. It can be that owner has grown to love the vehicle and is very much satisfied with the current performance of the car – why replace it when it’s not broken and is serving its purpose?
10. You get peace of mind – you know that you can keep it as long as you want plus you don’t have to financially burden yourself by paying more than what you can afford for now.
If you are satisfied with your current set of wheels, be practical and keep what you have. Be smart and save yourself lots of $.
At Speed Credit, our friendly loan consultants will answer any COE-related questions via email or even over the phone that you may have. We are more than happy to help you from latest COE renewal dates and policies to requesting of LTA transaction pin and vehicle log card. Most major banks do not offer such services.
We provide 100% financing for your COE loan amount at a competitive interest rate and believe in delivering a great service to all our customers. Contact us today at +65 6444 4400!