If you know the laws of Singapore you need to have a COE to keep your car registered under your name, or else it will be deregistered and disposed of. But keeping a COE can be costly and not everyone can build up the funds as to why there are COE car loans.
What are car loans?
Before you understand what this loan is you need to know what a COE is. It is a certificate of entitlement where the car is registered to your name based, and it can be kept for 5-10 years. A car loan is just like any other loan that you get from places such as a bank, you will have to ultimately pay it back and pay with interest of course. This is just a way for you to gain extra money so you can pay back your COE and keep your car.
What are the rates?
So the rates will depend on the bank, usually the interest rate is around 2.75% to 3.18%. Somehow you will have to pay about $300 each month to pay off the loan. Some leasing companies may charge even lower, it all depends on the category of the vehicle, as some cost more than others.
Why should you get a loan?
For some people getting COE car loan may seem unorthodox, but actually it can help you out greatly. You get to keep your car, or else you may have to buy another for much more. There are low interests, so you can benefit from that too.