Loan for COE Renewal?

[AltisOwner]

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

 

Yes, I fully agree.

 

 

 

Not trying to hao lian or anything..

 

IMO, if COE also need to take loan,

 

I think better go public.

 

Yup, it is good to take loan for a new car not more than 3 years or else you will be paying loan for the rest of your car life.  Owing a car is an investment.

Edited October 20, 2017 by AltisOwner

[xinz]

Yes TS asked for opinions, and I noted that forumers here are sincerely giving their honest opinions. I am not sure if TS stated anywhere that he did not want to get judged based on his financial circumstances. Further, perhaps you can be clear about what it means to get "judged" on financial circumstances. For as we know, the word "judge" is oft thrown around incoherently in defensive arguments.

 

According to your logic - if it's the TS' money, let him be and he's free to do what he wants. In the same vein, it's the forumer's keyboard and perhaps we shall live and let live and let him type whatever he wants. As long as all are done within ethical and legal boundaries.

 

The opinion that one shall take public transport instead of renewing an unaffordable COE is neither offensive nor derogatory. This opinion is possibly also made in hundreds of other threads in the archive of this forum alone. I surmise that it disturbs only the individual who secretly knows he is living beyond his means. I rest my case. 

Living beyond means? because one needs to take a loan for COE? that makes it unaffordable? is it too harsh and quick to make this assumption?      

[Throttle2]

Wah wah wah, and i havent even opened my mouth yet..

 

✌️

[Terrylmt]

1  ' for your used car '-- 

You may end up with a lemon

 

2  ' parts that are potentially waiting to break down ' --

imo , dashboard and parts of plastic materials may suffer but no big issue if car had been inside MSCPs which are all over the island.

Parts like mountings, under carriage connecting rods , arms, joints etc are not expensive to renew.

 

And you know your car history to begin with if you decide to renew COE.

 

TCO might be higher for COE renewal too. Increasing road tax, and insurance costs have to be factored in.

 

[JudeL]

 

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 

 

Aiya, people, lets be realistic and know we live in Singapore, where prices are high. Actually, renewing COE the cheapest way to drive on the road, even after considering the increased maintenance for an older vehicle, it's still saving a few K per year in depre compared to a new car or used car less than 10 years old.

 

Think about the loan % comment earlier, talk about a lot of interest, if you pay for COE renewal loan, you only loan the COE amount leh ($2xk to $4xk for cat A), if buy new car, loan amount lagi more, even more interest paid. Plus the down for new car is going to be what, $30k? Renew can be done without any down at all.

 

Renewal I think the most realistic, especially if you already own a car that is good condition and relatively low mileage.

 

I think loan rates start from 2.98% and go up to 4%. There are also options to loan above the COE amount... found quite useful info here 

 

http://www.sgcashncars.com/category/car-owners-notes/

 

I don't need big car for face purpose la, just to get around without sun & rain and don't waste time on MRT breakdown. I think renewed car best

[AltisOwner]

Yes, I fully agree.

 

 

 

 

Yup, it is good to take loan for a new car not more than 3 years or else you will be paying loan for the rest of your car life.  Owing a car is an investment.

 

Sorry, what I wanna to say is "Owing a car is NOT an investment" :( :)

[Xers007]

really is newbie... asking this type of qns is like flame baiting, this place also call My Cash Forum....

[thebutcher]

Alright chill bros..

 

Everyone is entitled to their opinions. These forums would be a better place if we all give objective comments pertaining to the TS' topic and not impose our ideas or opinions on others. Let's be realistic; i bet TS has already made up his mind that he wants the car and no amount of opinions, critiques or advice could change that. The convenience and freedom a car provides, its something we all want.

 

No doubt, i am an advocate of living within our means. We should all strive to live debt-free, clear our credit card bills in full every month and take minimal or no loans at all. But sometimes circumstances, familial obligations perhaps, may push us to make decisions which may impact our finances.

 

I know some will start on the "what ifs".. life is short; living in sg is stressful enough so its fine to indulge in a little "luxury".

 

TS should have a thorough look at his finances and weigh his options: either to renew coe or get the parf and scrap value and get a 2nd hand ride. Some of the bros are doing a good job in addressing the topic.

 

And no i am not a sales exec.

[Andy83]

Living beyond means? because one needs to take a loan for COE? that makes it unaffordable? is it too harsh and quick to make this assumption?      

You may wish to re-read my earlier post again, carefully. Is it too harsh and quick for you to make the assumption that I was making that assumption?    

 

 

Living beyond means? because one needs to take a loan for COE? that makes it unaffordable?

 

Anyhow, since you are on this topic, I'm sure forumers here would like to hear how you define "living within means" and being "affordable", vis-a-vis the purchase of cars and coe. Relatedly, perhaps you could share your views on whether one needs to take a loan of EIR 5 to 6%, if something is truly "affordable"?

[xinz]

You may wish to re-read my earlier post again, carefully. Is it too harsh and quick for you to make the assumption that I was making that assumption?

 

 

Living beyond means? because one needs to take a loan for COE? that makes it unaffordable?

 

Anyhow, since you are on this topic, I'm sure forumers here would like to hear how you define "living within means" and being "affordable", vis-a-vis the purchase of cars and coe. Relatedly, perhaps you could share your views on whether one needs to take a loan of EIR 5 to 6%, if something is truly "affordable"?

? I was saying why judge so freely and harshly?While we know should not until ascertained, so when did forum become a place that is ok to do so?

 

There are so many different scenarios and circumstances that a person required to take loan for a car, be it a junior sales executive where company pay a transport allowance, or really need a car to ferry family members, or family is backing him, even what is so wrong with a personal aspiration. Affordability is subjective. The question is whether he could comfortably service the instalment factoring other costs of upkeeping a car. While it is prudent to avoid taking loan and paying high interest, save the money for something else, the something else for him could well be having a car.

I would rather hear it from thread starter on his feeling and decision.

[Evillusion]

Wah wah wah, and i havent even opened my mouth yet..

 

âï¸ððª

 

This forum is very good leh!

Open mouth and smoke cigar lor.....and laugh....muayhahaha!

[Andy83]

? I was saying why judge so freely and harshly?While we know should not until ascertained, so when did forum become a place that is ok to do so?

 

There are so many different scenarios and circumstances that a person required to take loan for a car, be it a junior sales executive where company pay a transport allowance, or really need a car to ferry family members, or family is backing him, even what is so wrong with a personal aspiration. Affordability is subjective. The question is whether he could comfortably service the instalment factoring other costs of upkeeping a car. While it is prudent to avoid taking loan and paying high interest, save the money for something else, the something else for him could well be having a car.

I would rather hear it from thread starter on his feeling and decision.

? I was saying why judge so freely and harshly?While we know should not until ascertained, so when did forum become a place that is ok to do so?

 

I can see that you are missing the point by a mile. I shall let it pass.

 

There are so many different scenarios and circumstances that a person required to take loan for a car, be it a junior sales executive where company pay a transport allowance, or really need a car to ferry family members, or family is backing him, even what is so wrong with a personal aspiration. Affordability is subjective. The question is whether he could comfortably service the instalment factoring other costs of upkeeping a car. While it is prudent to avoid taking loan and paying high interest, save the money for something else, the something else for him could well be having a car.

I would rather hear it from thread starter on his feeling and decision.

 

You are conflating a number of issues here. You are saying that many people have different reasons to own car, some for more "legitimate" reasons while some for personal aspirations. But that is something absolutely non-numerical and very different from affordability. 

 

Would appreciate if the discussion on affordability is kept more constructive and stays within the boundary of numerical fluency. 

[Terrylmt]

 

Ease up and have a great weekend folks!

 

Edited October 21, 2017 by Terrylmt

[xinz]

Seem that you are the one missing the point and avoiding the other aspect of it. Suprise that you missed my view on numbers after trying so hard to critically examine my reply. I mentioned it is prudent to avoid taking up loan and high interest. There is no need to drill into such simple math and logic. 

 

My points are decisions in life is more than just numbers and we should not throw casual harsh remarks without good understand and then try so hard to justify for it. 

 

So why don't you tell us about your stand on these 2 points: 

 

1) Do you condone trigger happy kind of judgment on others?

2) Does taking loan means cannot afford and should be bashed?

 

Again I rather hear the thread starter's comment.

 

 

? I was saying why judge so freely and harshly?While we know should not until ascertained, so when did forum become a place that is ok to do so?

 

I can see that you are missing the point by a mile. I shall let it pass.

 

There are so many different scenarios and circumstances that a person required to take loan for a car, be it a junior sales executive where company pay a transport allowance, or really need a car to ferry family members, or family is backing him, even what is so wrong with a personal aspiration. Affordability is subjective. The question is whether he could comfortably service the instalment factoring other costs of upkeeping a car. While it is prudent to avoid taking loan and paying high interest, save the money for something else, the something else for him could well be having a car.
I would rather hear it from thread starter on his feeling and decision.

 

You are conflating a number of issues here. You are saying that many people have different reasons to own car, some for more "legitimate" reasons while some for personal aspirations. But that is something absolutely non-numerical and very different from affordability. 

 

Would appreciate if the discussion on affordability is kept more constructive and stays within the boundary of numerical fluency. 

 

[Andy83]

Seem that you are the one missing the point and avoiding the other aspect of it. Suprise that you missed my view on numbers after trying so hard to critically examine my reply. I mentioned it is prudent to avoid taking up loan and high interest. There is no need to drill into such simple math and logic. 

 

My points are decisions in life is more than just numbers and we should not throw casual harsh remarks without good understand and then try so hard to justify for it. 

 

So why don't you tell us about your stand on these 2 points: 

 

1) Do you condone trigger happy kind of judgment on others?

2) Does taking loan means cannot afford and should be bashed?

 

Again I rather hear the thread starter's comment.

 

Suprise that you missed my view on numbers after trying so hard to critically examine my reply. I mentioned it is prudent to avoid taking up loan and high interest. 

 

I have not "missed your view". It's just that I don't find it constructive to respond to a non sequitur. Or boilerplate arguments. 

 

There is nothing numerical about the motherhood statement of "it is prudent to avoid taking up loan and high interest.". Not one whit of it has to do with the foregoing discussion on affordability and how one is living within or beyond his means. 

 

 

My points are decisions in life is more than just numbers and we should not throw casual harsh remarks without good understand and then try so hard to justify for it. 

..................

So why don't you tell us about your stand on these 2 points: 

 

1) Do you condone trigger happy kind of judgment on others?

 

I believe my point on this has already been underscored in my first post of this thread. 

 

 

 

There is no need to drill into such simple math and logic. 

..............................

 

2) Does taking loan means cannot afford and should be bashed?

 

While it is nothing abstract, most laypersons underestimate such "logic" and math. They pat themselves on the back and tell themselves that such simple matters are not worth looking deeply into. They convince themselves that things are looking good in their lives and a car is affordable as long as monthly instalments are paid so that the repo man doesn't come. Although self-doubts might creep up at times, they are totally annihilated by the comforting smell of new leather (or like what some might say, fresh paint glazed with the latest 9H ceramic coating). Like femme fatale, the allure of cars can indubitably knock the sense and sanity out of the average man in Singapore. 

 

To quote a professor from a well-known local university - "There's a difference between being educated and being financially literate".

 

On this note and to advance a financially intelligent discussion, perhaps you could first make your standpoint as to why a person needs to take an loan of EIR 5 to 6 % (and in fact, 10-11 % for COE loans) if something is truly "affordable" ?      (note: with ref to my post #45 of this thread)

Edited October 22, 2017 by Andy83

[thebutcher]

Alamak chill bro..

 

We dont need another cscbb lurking in these forums

[xinz]

Right. No point engaging a person that don't see the simple things in life and pretend to be intelligent.

Edited October 22, 2017 by xinz

[Andy83]

Right. No point engaging a person that don't see the simple things in life and pretend to be intelligent.

 

I don't think I'm that intelligent, and in all honestly, there is no meaning for any person to pretend to be intelligent. 

 

 

However, it is basic decency for one to be intellectually honest. Now, that's something very different from the concept of intelligence. And as decent adults, we don't resort to an ad hominem argument (i.e., character attack) even when we are at our wit's end. 

 

 

For the avoidance of doubt, being financially literate also has nothing to do with academics, or even intelligence, as I have clearly mentioned previously.

 

 

Being intellectually honest also means that we do not sidestep questions that have been put forth to us repeatedly. On this note, we are still waiting for your comments on taking out a loan of EIR 10 - 11 % for something deemed affordable. 

 

 

No point engaging a person that don't see the simple things in life and pretend to be intelligent.

 

What are the simple things in life you have been alluding to? The sacrosanct right to own a car?

Edited October 22, 2017 by Andy83