Loan for renewal of 5yr COE

[Darryn]

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

Circumstances - my need for a car diminishes greatly after Jan, and about 96% likely to stop entirely by March

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

As an aside - this way (upfront full amount) is actually illegal in NZ --- 

All loans, by law, must be monthly rest.  And all loan documents must include the effective FINANCE rate

From your 2 months lookout, where are the forums u find it cheaper or at least reasonable priced.

SG Carmart definitely easiest to look and find - is the only place I search - just login daily to look look see see...

 

the one thing I strongly recommend - buy a manual car.  It is lots cheaper - and also the cars I looked at, the manual cars tended to be in better condition (in comparative pricing terms).  I saw some that we rather well maintained for their age. 

 

 

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

As already answered - I don't plan on having a car for so long.  Those renew COE type are charging around $15k for body - which is a bit of a joke for a 10 year old car (eg Wish is at $40k - take of $25k for COE and leaves $15k) 

[Kurty]

lucky and proud to say, I have a car till mar 2026..

 

least 1 less headache

[Roh96]

When I saw this statement, I thought I should congratulate u for getting out of car ownership. How did u do that?

 

Circumstances - my need for a car diminishes greatly after Jan, and about 96% likely to stop entirely by March

 

 

[Darryn]

When I saw this statement, I thought I should congratulate u for getting out of car ownership. How did u do that?

I'm just much more likely to be spending my money on something like this

[Roh96]

U plan to move back to NZ?

 

I'm just much more likely to be spending my money on something like this

 

[Barasuishou]

Wah ...... you are not trying to screw him ah ........ Did you see that big star and no word of p.a. ?

 

 

No income proof ? Sound like 3.88% every week.

hahaha... Nope it is 3.88% p.a.

This was used for newspaper advertisement so... not enough space ;p

[jamesmmk]

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.  

 

On the surface, your colleagues seems to make a wise move provided they drive the full 5yrs. Hope they factored in the maintenance cost, increasing road tax etc. 

 

[Sci10213]

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.  

 

 

Initially I was also looking at 2007 cars but i realise the buyer's market competition is very high for 2006-2007 cars. Because the Uber/Grab and rental companies are all buying in bulk, hence prices are raised and it becomes like a "take-it-or-leave-it" attitude by used car dealers... 

 

Thus I re-work my sums and bought a 2008 mpv ... can drive a bit longer and depreciation still OK.

Just have to put a bit more downpayment - that's all.

[Barasuishou]

Interest rate may be SUBJECTIVE...

Edited April 1, 2016 by Barasuishou

[Barasuishou]

Please give me a call directly if you have any enquiries. I cannot hear you well through my office phone. Recently abit spoil... haha thanks!

[Yeobt]

i'm sadden to read some comments from our members here that say "if you cannot afford 20k cash for COE, you better off without a car".  

 

this is like saying if one could not give birth to a baby, one should not bothered to fall in love and get married at all.  

[So_nice]

Don't be a snob. Whatever reasons he haf to take Coe renewal loan is his. There is no need to gloat at the situation he's in.

 

Renewing 5 years TBH is not worthwhile. U might wanna consider 10 yrs or even make use of ur current parf value to get another car

[JackYongHYC]

Friend, if you're planning to renew your COE, and you could like to take up a Loan for your COE value, you may look for me.

I do have COE renewal services.

Jack: +65 91122867

You can whatsapp/ SMS or call up to know more.

[Roh96]

i'm sadden to read some comments from our members here that say "if you cannot afford 20k cash for COE, you better off without a car".

 

this is like saying if one could not give birth to a baby, one should not bothered to fall in love and get married at all.

I agree w you. Have seen a few times in this forum. Whenever someone ask about car loan or loan/salary related topic, sure got such ppl come and talk nonsense.

[Yeobt]

Friend, if you're planning to renew your COE, and you could like to take up a Loan for your COE value, you may look for me.

I do have COE renewal services.

Jack: +65 91122867

You can whatsapp/ SMS or call up to know more.

 

hi,

 

second renewal also can? 96' EK

How much can loan and how many months?

 

TIA 

 

[JackYongHYC]

@yeobt I can try to help you loan for 60months.

But subject to loan approval.

For more information, you may text me directly.

Thanks :)

[Apple-Tree]

He probably meant no harm. 

 

I would suggest sell or scrap first, collect money.

 

Take public transport - Bus, not taxi for say 1~2 years. Or maybe JUST 1 year.  2 years sound forever. Or drive a Uber car @ 60/day.

 

Take the time to build some wealth. 

 

I think he will be a much happier man. And forget about chasing iPhone8.

 

And taking a 5 year COE is like a death trap + taking loan is another.

 

 

Sound so difficult, what to do ??  And what I just said is like that 1 liner.

 

 

Have you notice Uber is equivalent to renting a stall selling wanton mee.  You rent a stall, you rent a shop, you rent a office.

 

Why rent ? Is it because it is just too expensive to buy a unit.

 

Now, sound familiar already?  It is a trend here.

 

 

i'm sadden to read some comments from our members here that say "if you cannot afford 20k cash for COE, you better off without a car".  

 

this is like saying if one could not give birth to a baby, one should not bothered to fall in love and get married at all.  

 

[Pizzaboy]

Its either renew 10 yrs or scrap if not rent uber/grab cars at $60/day. At least u still can use è car to earn money on ur free time rather than park è car at mscp depreciatin away... 5 yrs renewal no point unless u drivin goods vehicle eg. Van, pick-up or small lorry aft 5 yrs expire still can renew another 5 yrs until 20 yrs scrap.