Car Loan Support for Singaporeans

Unfortunately, when it comes to the registration of personal vehicles, Singapore is one of the strictest countries in the world. Unlike other neighboring countries, in which certificates of entitlement are not really a thing, in Singapore the legal registration of a car is often significantly more expensive than the market value of the vehicle itself. On top of that, recent modifications in consumer demand, and anticipated reductions in the EV incentives schemes have restrained the available supply for car registration quotas, which in turn has had the adverse effect of rising COE costs.

Systems like the COE are not singular only to Singapore, but our country is special as it doesn’t really differentiate between ICE vehicles and EVs, like it’s the case in China, for example. In many Chinese cities, EV owners can obtain their license plate for free, while in Singapore, the process is pretty much the same regardless of vehicle type, and the price you will have to pay, as a future car owner will be determined by market bidding.

Yes, Singapore does provide certain incentives to EVs like the EEAI, which offers a rebate of 45% of the ARF, capped at S$15,000, or the VES, which includes a rebate of S$25,000 for EVs under the A1 band. That said, owning a car in Singapore is prohibitively expensive, and that’s by design. By pretty much all metrics, the public transportation system in our country is the best in the world, and the goal of the COE and ARF is to discourage the utilization of personal cars and thus reduce traffic congestion. Are you still keen, however, to purchase a new vehicle? In that case, obtaining a long-term car loan in Singapore from our agency will be one of your only available resources.

In Singapore, your car’s Certificate of Entitlement only has a validity of ten years, and after its expiration, you will have pretty much two choices at your disposal. You can either deregister your vehicle, which means either scrapping it/exporting it to new markets, or you can renew your COE, at a cost that will depend on the Prevailing Quota Premium for the vehicle’s category. As of October 2025, the PQP for Category A cars is S$105,000. Do you want to renew your COE for 10 years? Then, you will have to pay 100% of this sum. You only want to do it for five years? Then, you will pay 50%.

The problems, however, arise if your COE expires but you don’t have the necessary funds to renew it. Per the SG regulations, you will have a grace period of one month to put your documentation in order. But if you miss that, you will have to deregister your car, which will lead to a substantial financial loss. At the same time, if you decide to renew your COE, you forfeit the remaining rebate you can obtain by deregistering your vehicle early. In Singapore, the costs of COE renewal loans are substantial, and only the repayment plans associated with our financial aid packages can give you the peace of mind required to seriously consider purchasing a vehicle.