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sam138

Loan for renewal of 5yr COE

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I am about to buy a 80k COE car. As advertised, down payment 30% and 70% can loan from bank Which was my intention. When the bank replied, I am shock to know that one bank approve to loan only 55% of the car price while another 30% of the car price meaning down payment is 56k for a coe car. I never had problems in loans when I buy PARF cars and my current car I pay 1.1k monthly installment.

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$80k should be able to get a new Cat A car and loan easily.

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This one I say one.

 

I would seriously advise those taking COE loan to think carefully n be careful.  One of my hiadee got into real trouble.

 

Often, this will fall into the group of people who can barely own a car, thus stretching beyond their means to loan COE.  His business went bad, cant find a job and now he has to support his family n manage the loan payback.  He is stuck with the COE loan and cant get out.

 

Normally, expenses for car should only take up around 10 to 20% of one's take home income, less CPF.

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Supercharged

I am about to buy a 80k COE car. As advertised, down payment 30% and 70% can loan from bank Which was my intention. When the bank replied, I am shock to know that one bank approve to loan only 55% of the car price while another 30% of the car price meaning down payment is 56k for a coe car. I never had problems in loans when I buy PARF cars and my current car I pay 1.1k monthly installment.

 

need to follow MAS regulation like TDSR 60%, maybe u have other debts? 

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Twincharged (edited)

need to follow MAS regulation like TDSR 60%, maybe u have other debts?

it is because the price of COE cars are jacked up by dealers. The parf is consider written off after COE renewal. So as far as a bank is concerned, the real recoverable value of a COE car is slightly higher than PQP only. Banks will ensure that they could recover their principle sum when a loaner default.

I am about to buy a 80k COE car. As advertised, down payment 30% and 70% can loan from bank Which was my intention. When the bank replied, I am shock to know that one bank approve to loan only 55% of the car price while another 30% of the car price meaning down payment is 56k for a coe car. I never had problems in loans when I buy PARF cars and my current car I pay 1.1k monthly installment.

I think the bank assess the car using a lower value than your purchase prices. The parf once renewed, it is consider written off and has no more market value for bank to recover, what is left is the COE, so they wont co sider the full car price. I am going to renew my e200 around year end, including parf+body+pqp I will lose about 65k to max 70k, your 80k Coe car seems quite a lot.

Why not you get a new car ?

Edited by Ct3833

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Twincharged

This one I say one.

 

I would seriously advise those taking COE loan to think carefully n be careful. One of my hiadee got into real trouble.

 

Often, this will fall into the group of people who can barely own a car, thus stretching beyond their means to loan COE. His business went bad, cant find a job and now he has to support his family n manage the loan payback. He is stuck with the COE loan and cant get out.

 

Normally, expenses for car should only take up around 10 to 20% of one's take home income, less CPF.

Your advice is good. This is not confining to just COE car, the same situation will happen to those who stretch their financial to the limit to buy new car. Fortunately these are exceptions.

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it is because the price of COE cars are jacked up by dealers. The parf is consider written off after COE renewal. So as far as a bank is concerned, the real recoverable value of a COE car is slightly higher than PQP only. Banks will ensure that they could recover their principle sum when a loaner default.

I think the bank assess the car using a lower value than your purchase prices. The parf once renewed, it is consider written off and has no more market value for bank to recover, what is left is the COE, so they wont co sider the full car price. I am going to renew my e200 around year end, including parf+body+pqp I will lose about 65k to max 70k, your 80k Coe car seems quite a lot.

Why not you get a new car ?

I am also considering a 4 yr old car 90k and the downpayment also same as 80k coe car.

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Supercharged

This one I say one.

 

I would seriously advise those taking COE loan to think carefully n be careful.  One of my hiadee got into real trouble.

 

Often, this will fall into the group of people who can barely own a car, thus stretching beyond their means to loan COE.  His business went bad, cant find a job and now he has to support his family n manage the loan payback.  He is stuck with the COE loan and cant get out.

 

Normally, expenses for car should only take up around 10 to 20% of one's take home income, less CPF.

 

actually quite common and a lot. Some of those i know already having such issues. 

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