How It Works, Costs & Eligibility
A COE renewal loan (also known as COE car loan, PQP financing, or certificate of entitlement renewal financing) is a type of financing that helps motorists cover the cost of renewing their car’s Certificate of Entitlement (COE). Instead of bidding for a fresh COE, you pay the Prevailing Quota Premium (PQP), which is based on the moving average of past COE prices.
Many drivers choose to renew their COE for either 5 or 10 years to extend their vehicle’s lifespan. However, paying the PQP in a lump sum can be financially challenging. This is where COE renewal loans become useful; they allow you to spread the cost across manageable instalments while keeping your car on the road.
Licensed moneylenders like 118 Credit offer quick approvals and flexible repayment options, making renewal more accessible even for those who may not qualify for bank loans.
Paying PQP upfront requires a large lump sum. A COE renewal loan allows you to keep savings intact for emergencies or other investments while still securing your renewal.
Instead of paying tens of thousands at once, financing enables you to repay through structured monthly instalments. This provides predictable repayment without straining your budget.
While banks may require strong credit histories and longer processing times, a licensed money lender can provide faster approvals and customised plans. This makes financing more accessible to drivers with varying profiles.
A loan ensures you don’t miss the renewal deadline, which could otherwise result in vehicle deregistration. This is especially critical for owners who rely on their cars daily.
The PQP is calculated based on the moving average of COE premiums over the last three months. For updated figures, refer to the LTA official PQP table.
Recent years have seen rising COE premiums due to supply constraints and sustained demand for vehicles. According to the Automobile Association of Singapore (AAS), fluctuations in PQP are expected as car ownership demand changes with economic conditions.
Understanding PQP movements helps you decide when to renew. If rates are trending upwards, early renewal with financing may save money. If they are falling, timing renewal carefully could lower your overall cost.
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5-year renewals have lower initial financing requirements, but 10-year renewals may provide better value over time. Consider your usage plans, vehicle condition, and long-term affordability before deciding.
Yes, it’s possible. A licensed moneylender in Singapore will assess your current repayment capacity rather than focusing solely on existing debts, making it feasible to manage both current obligations and your COE renewal.
The Prevailing Quota Premium (PQP) is calculated based on the average COE prices over the past three months. This figure is published monthly by the Land Transport Authority (LTA) and forms the basis of how much you need to pay when renewing your COE.
Yes, but lenders will evaluate your total debt servicing ratio (TDSR). If you’re considering pairing it with a renovation loan in Singapore, ensure that you can comfortably manage both repayments to avoid financial strain.
They are different. Short term cash loans are designed to cover general urgent expenses like medical bills or household repairs, while COE renewal loans are specifically used to fund PQP payments for vehicle ownership renewal.
Banks may offer slightly lower interest rates but usually impose stricter eligibility requirements and longer approval times. A licensed moneylender offers quicker approvals, flexible repayment options, and may be more suitable if you need fast access to COE renewal financing.
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