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Fret not if you can't pony up the entire sum for a COE renewal. You still have two other options - bank loan or in-house loan. Here's all you need to know!
Category: Car Ownership Advice
Getting a brand new car is a costly thing, especially with the exhorbitant COE prices these days. However, if you are currently driving a car that has a COE expiring soon, you should consider a COE renewal for five or 10 years as a more budget friendly option.
The COE renewal process is pretty simple. There is no need to bid for a new COE, instead, you just have to pay the Prevailing Quota Premium (PQP) for your car's category. The PQP is a moving three-month average of current COE prices - these means that the cost for COE Renewal is also likely to be less volatile than a brand new COE.
Even though the PQP is a substantial sum, you don't have to worry too much. You don't have to cough up your entire savings to pay the entire sum, as there are COE renewal loans offered via a bank loan or in-house loan.
Looking to get a COE Renewal loan, but unsure which is the best option for you? Read on and find out more!
Bank COE renewal car loans
Banks usually offer attractive interest rates when compared to in-house COE renewal loans.
Maybank, for example, offers an interest rate of 3.18%, and Hong Leong Finance at 2.88%.
While a COE renewal loan with a bank is attractive, it isn't as easy to secure as banks require you to have a good credit score to secure the loan.
Banks will access your credit to see your capacity to take a loan. The process usually takes a few working days.
Generally, it is not as easy to score a loan from the bank as compared to an in-house loan, as your eligibility for a loan is taken into account.
The good thing is that banks are transparent, offer added security, and rarely do banks charge exorbitant administrative fees as compared to in-house COE renewal loans.
Do note that banks DO NOT accept direct COE renewal loan applications. You'll have to go through an agent (like sgCarMart Connect) that offers the same interest rates as the bank.