So the day has arrived. After ten long years together, your metal steed has finally reached the end of the highway with the expiration of the 10-year Certificate of Entitlement, commonly known as COE.
With the complexities around car loans, many car owners are now finding it harder to afford a new vehicle according to a study conducted by Statista. This raises the possibility of renewing the COE, instead of buying yet another car again or listing their cars as used cars for sale in Singapore.
Of course, after experiencing the convenience of possessing your own car and having a personal means of transport, it becomes exceptionally difficult to even imagine yourself having to wake up earlier than usual, catching the bus or train and having to squeeze with many other people and run the risk of being late for work. Now that your COE is coming to an end, you must be thinking, “What are my options?”
If that is the case, here are three choices or options that you can do with your beloved car.
1. Renew Your COE
The most obvious reason why car owners are choosing to renew their COE instead of buying a new car is the lower upfront cost. Unlike buying a new vehicle where you would have to bid for a new COE and pay for the full price of a car, including car loan interest rate, COE renewal only requires you to pay for the Prevailing Quota Premium (PQP). This amount is calculated based on the moving average of COE prices in the last three months.
Renewing your COE brings you the best of both worlds, a more economical solution compared to buying a brand 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 another ten years.
2. Rent A Car Instead
Before arriving at this decision to rent or lease a vehicle, there are some questions that you need to think about first. Are you comfortable with driving a car that is technically not your own? Are you saving up to get a better car next? Have you worked out the math and does it work out to be value for money?
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 Honda Vezel in Singapore, its monthly payment ranges between $899 to $1,700, inclusive of insurance, road tax, and full vehicle maintenance and might be even cheaper than owning a car, especially if you are saving up and can settle for a lower-tier car for a short period of time.
3. Scrap your car
Scraping your old vehicle and purchasing a new one is the option that the majority of the vehicle owners in Singapore will opt for according to the data gathered by the government. The cost that comes with buying a brand new car in Singapore does not come cheap. Luckily enough, you may be able to offset the cost of the new vehicle if your current one has not reached the 10-year mark and still has some value.
If you are looking to scrap your car and get a new one, the question to ask yourself is whether or not you are financially capable of scraping or trading-in your vehicle and then buy a new car. If not, what other less financial heavy alternatives can you seek?
It is up for you to weigh your options
Whatever you decide to do with your car, always remember the things to be considered: Your budget, your long-term goal, and your personal gain. Everything all boils down to what you need at the moment or time when your COE expires.
If you are looking for used cars, we have recommended car dealers in Singapore on our website. Visit our page and let our experts take it from there.