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Loan for renewal of 5yr COE


sam138
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I'm curious what investment offer better return when COE loan interest is at 3.88%

Fix deposit of 50k with bank for 5 years the return is only 0.75%

Please share so I can also take advantage of it in future

 

this investment return 5.3% for 4 yrs

 

for details:

http://singapore-ipos.blogspot.sg/2016/03/aspial-retail-bonds-53-4-years.html

 

Aspial Retail Bonds 5.3% 4 Years
 
image-719888.png

 
Aspial Treasury Pte. Ltd. ("Aspial" or the "Company") is offering up to S$75m worth of bonds through public and placement offering. 
 
The placement trance of $25m was fully subscribed on its first day. Investors who are keen to invest can try to buy through the ATM as the Company has set aside $50m for the retail tranche. In the event of oversubscription, the Company can upsize the offer to $200m.
 
This retail offering comes after its inaugural retail bonds issuance in Aug 2015. My post was here.
 
Application for the public tranche will close on 30 March 2016. For ease of future reference, the key terms are as follows:
  • Interest rate: 5.3% per annum
  • Tenure: 4 years
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this investment return 5.3% for 4 yrs

 

for details:

http://singapore-ipos.blogspot.sg/2016/03/aspial-retail-bonds-53-4-years.html

 

Aspial Retail Bonds 5.3% 4 Years
 
image-719888.png

 
Aspial Treasury Pte. Ltd. ("Aspial" or the "Company") is offering up to S$75m worth of bonds through public and placement offering. 
 
The placement trance of $25m was fully subscribed on its first day. Investors who are keen to invest can try to buy through the ATM as the Company has set aside $50m for the retail tranche. In the event of oversubscription, the Company can upsize the offer to $200m.
 
This retail offering comes after its inaugural retail bonds issuance in Aug 2015. My post was here.
 
Application for the public tranche will close on 30 March 2016. For ease of future reference, the key terms are as follows:
  • Interest rate: 5.3% per annum
  • Tenure: 4 years

 

 

 

:a-good:  :a-good:  :a-good:

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as mentioned in my post, i can pay 1 short but i got much better return% investing part of my spare cash elsewhere than to pay off for 5 yrs coe renewal even after taking into consideration of the interest incurred.

 

as for why i don't want to buy less than 10yrs coe car in the mkt now is because the mthly depreciation is higher than new car and my car mileage is very low and had no major problem at all.

so i decided to renew coe and had already factor in the extra road tax and yrly inspection cost and maintenance etc etc

 

BTW my car is a WANT not a NEED but i dont mind keep the cost low la since its mainly for leisure and occasionally ferrying my folks for meals n errands.

 

if i renew 5 yrs coe + lost omv value + int% incurred, my next 5 yr yrly depreciation will be just approx 6.5k annually compare to buying 2nd hand car that easily cost 10k a yr. so thats 3.5k saving per yr on a low mileage car that i knew inside out.

 

anyway thanks to all bros advice on don't drive and take taxi, uber etc [thumbsup]

 

its always good to be prudent especially when times are bad now haha [laugh]

Not being a snob, but you do realize EIR for so called 3.88% flat rate Coe loan is actually 7 something don't you.. If you have investment product of 20k scale which returns much better than 7% in this economic climate, please share..

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How about looking for a car dealer that is willing to buy your car and renew the COE, then sell it back to you? For the right amount of fees, I'm sure there will be a dealer willing....

Have only seen higher price: parf + pqp + 3k more if buy from dealer a coe car.

 

If you do it yourself on your own car, you save the 3k.

Edited by Hyruga
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Supercharged

3.88% not bad

 

3.88% is on the high side, lowest I found was around 3.2%

 

pm me if keen, I'm not doing this..

 

my friend is..

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TS, I think you come to a wrong place to asking this kind of question. I remember one of member mention here buy car all paying full cash.

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Turbocharged

as mentioned in my post, i can pay 1 short but i got much better return% investing part of my spare cash elsewhere than to pay off for 5 yrs coe renewal even after taking into consideration of the interest incurred.

 

as for why i don't want to buy less than 10yrs coe car in the mkt now is because the mthly depreciation is higher than new car and my car mileage is very low and had no major problem at all.

so i decided to renew coe and had already factor in the extra road tax and yrly inspection cost and maintenance etc etc

 

BTW  my car is a WANT not a NEED but i dont mind keep the cost low la since its mainly for leisure and occasionally ferrying my folks for meals n errands.

 

if i renew 5 yrs coe + lost omv value + int% incurred, my next 5 yr yrly depreciation will be just approx 6.5k annually compare to buying 2nd hand car that easily cost 10k a yr. so thats 3.5k saving per yr on a low mileage car that i knew inside out.

 

anyway thanks to all bros advice on don't drive and take taxi, uber etc  [thumbsup]

 

its always good to be prudent especially when times are bad now haha [laugh]

I've been looking at cars very very hard for the last two months - 

 

For used - but those left 12-18 month type can get below $600 monthly depreciation for a small car. 

 

We've just signed on for one at $750 a month depreciation - lasts till May next year. 

 

So is still possible to get at the moment - so long as willing to 

a) Hunt

b) Change car often

 

Two people in our office are renewing COE on their low mileage Wishes - 

Factor in $11k for ARF + $25k COE - annual depreciation around $7k - or $650 / month - cannot get that sort of pricing at the moment for MPV so still a good deal for them.  

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Hypersonic

 

this investment return 5.3% for 4 yrs

 

for details:

http://singapore-ipos.blogspot.sg/2016/03/aspial-retail-bonds-53-4-years.html

 

Aspial Retail Bonds 5.3% 4 Years
 
image-719888.png

 
Aspial Treasury Pte. Ltd. ("Aspial" or the "Company") is offering up to S$75m worth of bonds through public and placement offering. 
 
The placement trance of $25m was fully subscribed on its first day. Investors who are keen to invest can try to buy through the ATM as the Company has set aside $50m for the retail tranche. In the event of oversubscription, the Company can upsize the offer to $200m.
 
This retail offering comes after its inaugural retail bonds issuance in Aug 2015. My post was here.
 
Application for the public tranche will close on 30 March 2016. For ease of future reference, the key terms are as follows:
  • Interest rate: 5.3% per annum
  • Tenure: 4 years

 

 

lend money to company to fund the bosses' luxury lifestyles?

 

:D

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I've been looking at cars very very hard for the last two months - 

 

For used - but those left 12-18 month type can get below $600 monthly depreciation for a small car. 

 

We've just signed on for one at $750 a month depreciation - lasts till May next year. 

 

So is still possible to get at the moment - so long as willing to 

a) Hunt

b) Change car often

 

Two people in our office are renewing COE on their low mileage Wishes - 

Factor in $11k for ARF + $25k COE - annual depreciation around $7k - or $650 / month - cannot get that sort of pricing at the moment for MPV so still a good deal for them.  

How come you didn't consider buying those cars already renewed 5 year coe?

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I've been looking at cars very very hard for the last two months -

 

For used - but those left 12-18 month type can get below $600 monthly depreciation for a small car.

 

We've just signed on for one at $750 a month depreciation - lasts till May next year.

 

So is still possible to get at the moment - so long as willing to

a) Hunt

b) Change car often

 

Two people in our office are renewing COE on their low mileage Wishes -

Factor in $11k for ARF + $25k COE - annual depreciation around $7k - or $650 / month - cannot get that sort of pricing at the moment for MPV so still a good deal for them.

This is not a very wise move for long term

 

What if After 5yrs 2021 which most likely coe price will be back to $80k +-

 

Or

 

COE drop to below 30k in 2018? They will lppl

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I've been looking at cars very very hard for the last two months -

 

For used - but those left 12-18 month type can get below $600 monthly depreciation for a small car.

 

We've just signed on for one at $750 a month depreciation - lasts till May next year.

 

So is still possible to get at the moment - so long as willing to

a) Hunt

b) Change car often

 

Two people in our office are renewing COE on their low mileage Wishes -

Factor in $11k for ARF + $25k COE - annual depreciation around $7k - or $650 / month - cannot get that sort of pricing at the moment for MPV so still a good deal for them.

From your 2 months lookout, where are the forums u find it cheaper or at least reasonable priced. Edited by SUVperb
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This is not a very wise move for long term

 

What if After 5yrs 2021 which most likely coe price will be back to $80k +-

 

Or

 

COE drop to below 30k in 2018? They will lppl

Maybe they will sell the car within 5 years if coe drop low? And when reached end 5 years if coe is super high, get another used car?

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Not being a snob, but you do realize EIR for so called 3.88% flat rate Coe loan is actually 7 something don't you.. If you have investment product of 20k scale which returns much better than 7% in this economic climate, please share..

Sorry. Dumb question

 

What you mean by eir is 7%?

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Turbocharged

Sorry. Dumb question

 

What you mean by eir is 7%?

 

3.88% is the FLAT rate . Means as you start to service your loan , whatever amount that you paid is not taken into account to reduce the principal that the rate is based on.  Car loan use this method.

 

When that happens , the EFFECTIVE INTEREST RATE is 7% . Same as you take a loan at 7% interest , but your monthly payments reduces the principal and you pay a lower interest rate as time goes on . Housing loan use this method .

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Maybe they will sell the car within 5 years if coe drop low? And when reached end 5 years if coe is super high, get another used car?

25k coe

11k Arf

 

Most likely 2018 is the lowest, which is

11k / 2 = 5.5k + 5k coe dep

So in worse scenario, his wish will dep 10.5k pa if he wana scrap

 

And sell who wana buy?

Edited by Kia7200
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Sorry. Dumb question

 

What you mean by eir is 7%?

 

http://www.moneysense.gov.sg/Understanding-Financial-Products/Credit-and-Loans/Things-to-Watch-Out-for.aspx

 

The effective interest rate may be higher than the advertised rate due to the way interest is calculated. For example, in a flat rate loan, interest is calculated upfront and added on to the loan amount. In this case, the effective interest rate is higher than the advertised rate because the same rate (advertised rate) is applied throughout the loan period even though the outstanding loan amount has reduced due to monthly repayments. In the case of the monthly rest method of interest calculation, the advertised rate is the same as the effective interest rate, because interest is calculated based on the reduced balance of the loan. 

 

https://loanstreet.com.my/calculator/flat-to-effective-interest-calculator

 

based on this calculator, 3.88% is actually effective interest rate of 7.21%

 

i.e regardless what is your balance loan amount... you will still be paying 3.88% of 20k as interest

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as mentioned in my post, i can pay 1 short but i got much better return% investing part of my spare cash elsewhere than to pay off for 5 yrs coe renewal even after taking into consideration of the interest incurred.

 

as for why i don't want to buy less than 10yrs coe car in the mkt now is because the mthly depreciation is higher than new car and my car mileage is very low and had no major problem at all.

so i decided to renew coe and had already factor in the extra road tax and yrly inspection cost and maintenance etc etc

 

BTW  my car is a WANT not a NEED but i dont mind keep the cost low la since its mainly for leisure and occasionally ferrying my folks for meals n errands.

 

if i renew 5 yrs coe + lost omv value + int% incurred, my next 5 yr yrly depreciation will be just approx 6.5k annually compare to buying 2nd hand car that easily cost 10k a yr. so thats 3.5k saving per yr on a low mileage car that i knew inside out.

 

anyway thanks to all bros advice on don't drive and take taxi, uber etc  [thumbsup]

 

its always good to be prudent especially when times are bad now haha [laugh]

why would you even bother what others are saying. $ is yours not theirs..

like you take a loan their $ in bank would be gone..

 

I can also afford 20k but my company is paying me monthly for transport allowance so its a win win for me since someone is paying my coe renewal loan.(but that would be next years) rather then i take my own $ to pay 1 shot

Edited by Jfkoh
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