Published on July 8, 2021

COE Renewal VS Buying A New Car – 3 Reasons Why COE Renewal Is Better

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If you own a car and you’re approaching your 10th-year mark, you are inevitably faced with an important decision to make: should you renew your COE or just purchase a brand new car?

While it is common for most people to be more inclined towards investing in a new car, it is not necessarily the best option. It is no surprise that Singapore is one of the most expensive countries in the world to own a car, which is why opting for a COE renewal might be a better alternative. If you’re still on the fence about it, here are 3 reasons why renewing your COE is a better choice:

1. It’s more affordable than buying a new car


As opposed to purchasing a new car – where you’d have to bid for a new COE and pay for the full price of a car, including the car loan interest rate – opting for COE renewal also means getting to enjoy lower upfront costs. When renewing your COE, you’ll only have to pay for Prevailing Quota Premium (PQP). PQP differs month to month, depending on COE prices in the previous three months’ bidding exercises. 

However, renewing your COE also means giving up your PARF rebates, which could be worth a few thousand dollars. But, you’ll still receive COE rebates if you choose to deregister or scrap your car before the new COE term is up. With this COE rebate, you can use it to offset the price of a new car. Check out’s
COE result page to learn more about the PQP amount for the current month.

COE Renewal Loan Agreement Signing
COE Renewal Loan Agreement Signing

2. Renewing your COE can be 100% financed with a loan

Unlike a normal car loan, where you can only borrow 70% of your car’s Open Market Value (OMV), you are able to finance 100% of your COE with a bank loan or a finance company like Swee Seng Credit. The repayment terms vary, depending on how long you plan on renewing your COE for. For instance, if you are renewing your COE for 10 years, the maximum term would be 7 years; and for 5 years, the maximum term is 5 years. 

3. COE renewal is a hassle-free process

When you choose to renew your COE, you don’t have to worry about things like nailing down your budget, consulting with your loan provider, finding time to go for a test drive with the new vehicle, and selling your old vehicle. Purchasing a new car also requires you to factor in the time it’ll take for your new vehicle to be ready. The process of renewing your COE is much more seamless and less time-consuming, unlike buying a new car. All you have to do is go consult with your loan provider to compare the interest rates, apply for the loan to pay the PQP, wait for approval, and you’re good to go! 

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Having to choose between renewing your COE or buying a new car can be tough. At the end of the day, it is up to the car owners to decide if their current car is able to carry on for the duration of a new COE term. Besides, renewing a car’s COE would be pointless if it’s constantly malfunctioning and you’re spending the bulk of your money on maintenance. 


Opting to renew your car’s COE is also a more feasible option especially for car owners who are not ready to commit to another 10 years of COE. With this alternative, you can choose to renew it for another 5 or even 10 years. When renewing your car’s COE, it’s important to note that you will have to do so before the existing COE expires. Otherwise, you won’t be able to drive your car until your COE has been renewed and you’ll incur a late payment fee as well!  

With finance companies like Swee Seng Credit, you’ll get to enjoy the best COE renewal loan experience and attractive interest rates as well. Learn more about how we can help you with COE renewal financing today.