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70 replies to this topic | 334 praises

#1

Posted 17 October 2017 - 04:26 PM

MyCarMykar
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Hi guys,
 
just a quick question and discussion.
 
Is it common to take up loan for COE renewal ? 
 
Well i understand that some may say words like
"if you need to loan for COE renewal, you might be better off taking public transport" 
 
but well, just trying to find out here, afterall this is my father's car and he has retired and doesn't need the car anymore, thus everything is on me now.
 
I googled for some financial institute that does loan for COE, cheapest i saw is 3.2% for 7 years repayment.
 
Just wondering if you guys have other suggestions or recommendations. 
 
Feel free to comment bros.  Sorry if this post is not suppose to be here, as you can see, newbie here  [wave]

Edited by MyCarMykar, 17 October 2017 - 04:27 PM.

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#2

Posted 17 October 2017 - 04:34 PM

Mockngbrd
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3.2% ok la, those i see around 4%.   Your $$$, go ahead.   I'd go for shortest term possible though. 5 yrs maybe.


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#3

Posted 17 October 2017 - 04:42 PM

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Cheapest you saw 3.2% but may be BS.. most coe loans are around 3.8%. Assuming 40k COE..
You loan 30k

3.8% x 30k x 7 = 7980
7980/30000 27%

Your interest alone is 27% of your loan amount

Total payable is 47,980

Is it worth it for a 10 year car?

Why not save the $50,000 for:

1. Scrap your car, get back parf
2. Wait for coe to drop to buy new car (interest lower as well)
3. Or invest in your education, children, family and take public transport.

Don't waste your $50k

Edited by Perspectivism, 17 October 2017 - 04:44 PM.

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#4

Posted 17 October 2017 - 05:02 PM

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Here are some questions that I would ask myself if I were in your situation:

  1. Are you planning to loan the full amount of the COE?
  2. How much would you be able to fork out on your own to reduce the loan (and liability)?
  3. Are you certain that your father's existing car can last for another 5-7 years?
  4. Why do you want to keep the car, as opposed to scrapping it, collecting the PARF and using that to get a used car with 3-5 years left?

Hope that helps.

 


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#5

Posted 17 October 2017 - 05:07 PM

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Here are some questions that I would ask myself if I were in your situation:

  1. Are you planning to loan the full amount of the COE?
  2. How much would you be able to fork out on your own to reduce the loan (and liability)?
  3. Are you certain that your father's existing car can last for another 5-7 years?
  4. Why do you want to keep the car, as opposed to scrapping it, collecting the PARF and using that to get a used car with 3-5 years left?

Hope that helps.

 

1) yes full amount

 

2) $10K

 

3) Yes certain, because basically he is wasting the car away for a good 5 years last time, basically park at carpark and let it rot, car condition is very new, only recently these few months i start to use it everyday

 

4) PARF only $7K+ abit, so I dont know if my assessment is correct, renewal is definitely the better choice. plus reason on point 3.



#6

Posted 17 October 2017 - 05:27 PM

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Hi,

 

What type of car u have now, extending coe to max 10years is a better choice.


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#7

Posted 17 October 2017 - 05:27 PM

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Hi guys,
 
just a quick question and discussion.
 
Is it common to take up loan for COE renewal ? 
 
Well i understand that some may say words like
"if you need to loan for COE renewal, you might be better off taking public transport" 
 
but well, just trying to find out here, afterall this is my father's car and he has retired and doesn't need the car anymore, thus everything is on me now.
 
I googled for some financial institute that does loan for COE, cheapest i saw is 3.2% for 7 years repayment.
 
Just wondering if you guys have other suggestions or recommendations. 
 
Feel free to comment bros.  Sorry if this post is not suppose to be here, as you can see, newbie here  [wave]

 

 

Latio?


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#8

Posted 17 October 2017 - 05:28 PM

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Not trying to hao lian or anything..

 

IMO, if COE also need to take loan,

 

I think better go public.


Edited by Aaronlkl, 17 October 2017 - 05:37 PM.

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#9

Posted 17 October 2017 - 05:32 PM

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1) yes full amount

 

2) $10K

 

3) Yes certain, because basically he is wasting the car away for a good 5 years last time, basically park at carpark and let it rot, car condition is very new, only recently these few months i start to use it everyday

 

4) PARF only $7K+ abit, so I dont know if my assessment is correct, renewal is definitely the better choice. plus reason on point 3.

If the car is still in very good condition and the Parf is only 7k, then it does seem like renewing the COE would be the financially prudent thing to do, after public transport. I guess even if you do decide to sell the car down the road, you can still get the remaining COE value back, minus interest lost.


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#10

Posted 17 October 2017 - 05:46 PM

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1) yes full amount

2) $10K

3) Yes certain, because basically he is wasting the car away for a good 5 years last time, basically park at carpark and let it rot, car condition is very new, only recently these few months i start to use it everyday

4) PARF only $7K+ abit, so I dont know if my assessment is correct, renewal is definitely the better choice. plus reason on point 3.

If you need to pay 10k, loan the rest and park the car at car park which is a complete write off, my suggestion is to use the 10k plus 7k your get from PARF to do any investment, worst case you are unlilely to write off the 17k completely as oppose to renewing COE, and you would likely to get more than 17k in return after 5 years.

I nearly wanted to say.."if you need to loan for COE renewal, you might be better off taking public transport"

Edited by Ct3833, 17 October 2017 - 05:48 PM.


#11

Posted 17 October 2017 - 05:56 PM

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I think the important - and fundamental - question to TS is whether he really needs a car, both now and in the near future or not?

 

If the question of renewing has come about only because TS' father has a car reaching expiry, so it's wasted to scrap, and hence consider renewing - when there is no big need, plus cannot readily afford - then prudent thing to do is to scrap, and don't saddle yourself with loan. Got no compelling reason, then don't fall in debt.

 

If however, there is valid need to own a car now (work needs, family needs, etc.), and the choice is renew or buy new, then can seriously consider renewing. Buy new needs to fork out lots cash. If renew, it's more manageable.



#12

Posted 17 October 2017 - 06:14 PM

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Hi guys,
 
just a quick question and discussion.
 
Is it common to take up loan for COE renewal ? 
 
Well i understand that some may say words like
"if you need to loan for COE renewal, you might be better off taking public transport" 
 
but well, just trying to find out here, afterall this is my father's car and he has retired and doesn't need the car anymore, thus everything is on me now.
 
I googled for some financial institute that does loan for COE, cheapest i saw is 3.2% for 7 years repayment.
 
Just wondering if you guys have other suggestions or recommendations. 
 
Feel free to comment bros.  Sorry if this post is not suppose to be here, as you can see, newbie here  [wave]

 

 

Renew and loan for 2yrs or lesser.

 

Since you don't have a need to use the car.

 

Buy Z10 & rent it out weekly to PH drivers.

 

In no time can recover back what you throw.


Not trying to hao lian or anything..

 

IMO, if COE also need to take loan,

 

I think better go public.

 

Go public also cui leh.

 

Even opening ceremony can breakdown.

 

Taking loan doesn't mean no money to pay it in full.


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#13

Posted 17 October 2017 - 06:20 PM

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1) yes full amount

 

2) $10K

 

3) Yes certain, because basically he is wasting the car away for a good 5 years last time, basically park at carpark and let it rot, car condition is very new, only recently these few months i start to use it everyday

 

4) PARF only $7K+ abit, so I dont know if my assessment is correct, renewal is definitely the better choice. plus reason on point 3.

 

OK. So in actual fact, you only need to loan up to 38K (assuming Cat B) for the COE extension. Knowing this, I would actually suggest that you scrap or sell the car now, and get a used car to drive.

 

This is my preferred route to go with owing to a few considerations:

  1. If going by the scrap value, you potentially have $17K to put as downpayment for your used car, and that means you can afford to buy a used car valued at 56-57K with PARF value at the end of its COE life.
  2. Your current car, whilst under-utilised, is also under-serviced. Meaning there could be parts that are potentially waiting to break down in the subsequent years of usage that you will have to fork out for, and you could be spending a good part of your time and money for that.
  3. Being under-utilised means that you potentially can sell the car on your own for a reasonable price which would then add to your ability to fork out more downpayment or save cash for the used car's maintenance/upkeep.
  4. Since you are already going for a loan, why not consider taking a lower interest loan (i.e. 2.88%, or sometimes 2.18% if on bank promo) than the COE loan? 

Hope that helps.

 

 



#14

Posted 17 October 2017 - 06:49 PM

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True true.. I agree :D

 

 

Go public also cui leh.

 

Even opening ceremony can breakdown.

 

Taking loan doesn't mean no money to pay it in full.

 


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#15

Posted 17 October 2017 - 06:56 PM

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Ts, u need to factor in the upkeep cost besides the coe instalment. Probably about 1.2k to 1.5k in total a month easily. Nvr nvr renew it if its becos of sentimental values unless u have spare cash... Just my 2 cts thoughts
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#16

Posted 17 October 2017 - 07:27 PM

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Hong Leong 3.25% (Processing Fee $200)

Tokyo Century 3.5%

 

Loan PQP value only

 

Need a credit agent to process and effect transfer so to kick in the loan, your car will increase in 1 trf count


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#17

Posted 17 October 2017 - 07:39 PM

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Just renewed my COE which would have ended today, 17 Oct 2017.

 

Had thought of getting a staff loan but after doing the sums, we decided not to and paid up 42.5 k in full  [smallcry]


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#18

Posted 17 October 2017 - 09:05 PM

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"If COE renewal also need to loan, might as well take public"

I am disturbed by the above statement.

Who are we to judge? TS merely asked for opinions, he didnt ask to get judged on his financial circumstances.

Let him be. Its his money and he's free to do what he wants.

Remember, life is like a wheel. You may be on the up now, but life can come tumbling down at any moment.
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#19

Posted 17 October 2017 - 09:12 PM

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Taking loan for COE renewal is nothing to be shameful about. I don't understand why ppl must pass such remarks like asking TS to take public Transport..
Even most ppl who buy new car also repay COE by monthly installment, isn't it? Unless you pay in full, that's another thing.
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#20

Posted 17 October 2017 - 09:28 PM

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Take loan not lao kui lah... Just go within your means can already. Just curious... Wats your ride? why not consider 10yrs coe so your depreciation is actually lower.


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