(Photo Credit: Bloomberg)
It is no secret that Singapore is one of the most expensive countries in the world when it comes to car ownership. Land scarcity and the lack of domestic car manufacturers make it virtually impossible to lower the cost of owning a car.
However, the ever-increasing cost of purchasing a new car has led to an unprecedented rise of COE renewal for car owners.
If you are still on the fence between buying a new car and renewing your COE, here are 6 valid reasons why now is the perfect time to choose the latter.
1) Looming Economic Recession
(Photo Credit: Pixabay)
The COVID-19 outbreak is a worldwide epidemic which has not only impacted mankind, but also the global economy.
In the automotive industry, production across the world have been grinding to a halt due to the closure of factories and production plants.
At home, the closure of non-essential workplaces have also severely impacted the local automotive industry. In fact, Deputy Prime Minister Mr Heng has even mentioned that, “Until an effective vaccine or treatment is developed, our policies can only seek to mitigate the fallout”, suggesting that businesses in Singapore will continue to suffer.
Moreover, various evidence even suggest that the COVID-19 pandemic may rival the Great Depression.
Being savvy with your expense is paramount. Therefore, renewing your vehicle’s COE may be the most prudent and logical choice.
2) Increased Durability and Longevity of Your Car
(Photo Credit: Pexels)
The lifespan of a vehicle in Singapore can be significantly longer compared to vehicles across the world.
The reason? Most Singapore car owners do not travel long distances as compared to car owners in larger countries.
Sure, you’d always have the option to drive across the Causeway for leisure. But how often do you actually travel to Malaysia?
Moreover, Singapore has a tropical climate. Hence, cars do not suffer from harsh weather conditions like hail or snow, which damages the durability of your vehicle.
On the other hand, one may point out that Singaporeans waste a lot of time on traffic jams, which potentially have negative effects on a vehicle in the long haul.
While that may be true, Singapore is only ranked 96th across 416 cities in terms of urban traffic congestion in 2019.
If the roadworthiness of your car is a concern, perhaps consider having an inspection done by professionals before renewing your COE. There are plenty of workshops across Singapore offering these services.
In conclusion, if you meticulously take care of your existing vehicle, the lifespan of your vehicle should be enough to see through the minimal COE renewal period of five years.
3) Possible COE Price Hike
(Photo Credit: SG Charts)
Dating back to February 2003, when the SARS (Severe acute respiratory syndrome) Outbreak first happened in Singapore, COE prices remained relatively the same during and after the outbreak.
The outbreak was officially declared over by the World Health Organization (WHO) in July 2003.
While circumstances are totally different, do remember the context of how COE works.
COE is based on demand and supply. With the suspension of the bidding exercise for at least until June, there is bound to be an increase in demand for people seeking new vehicles after the COE bidding resumes.
With a limited and capped supply, the prices of COE is most likely to hike.
4) Availability of Car Parts
(Photo Credit: Pexels)
While it is undeniable that older vehicles pose a more inherent threat to maintenance issues, the fear of securing parts for older vehicle is there as well.
However, this should not be so concerning as there are skilled and competent workshops that can offer alternatives, or even have the necessary parts as well.
Moreover, parts can be conveniently sourced online thanks to advancements in the digital space.
Perhaps the only thing to worry about is the physical labour. This can always be outsourced to mechanics with experience under their belt.
5) They Don't Make Cars Like They Do Now
(Photo Credit: 9tro)
If you are a car enthusiast, you would probably agree that car manufacturers don’t make cars like their older predecessors.
Stricter carbon restrictions that compromises vehicle performance and lacklustre designs to legendary car models are just some examples why older cars are worth hanging on to.
6) Ease of Transaction
(Photo Credit: Shutterstock)
At Motorist, we promise to help you find the lowest COE loan interest rates in Singapore. We will also provide you with updates if your COE renewal process is affected by the extended Circuit Breaker measures.
If you are affected, not to worry, as we will even handle all the necessary paperwork for you!
Schedule a free COE renewal consultation session!
Download the new Motorist App now. Designed by drivers for drivers, this all-in-one app lets you receive the latest traffic updates, gives you access to live traffic cameras, and helps you manage LTA and vehicle matters.
Did you know we have a Motorist Telegram Channel? Created exclusively for drivers and car owners in Singapore, you can get instant info about our latest promotions, articles, tips & hacks, or simply chat with the Motorist Team and fellow drivers.