How to Get a COE Car That Doesn’t Feel Like a Downgrade

The idea of buying a COE car often conjures up images of rusting, outdated vehicles that no one wants to be seen in. But the truth is, a COE car doesn’t have to feel like a downgrade. In fact, it can be a smart and affordable way to own a car without breaking the bank. If you’ve been hesitant about purchasing a COE car, we’ve got some tips to help you pick a ride that not only looks great but also suits your lifestyle.

Let’s dive into what is a COE car, and how to choose a COE car that feels like an upgrade, even if it’s technically a used car. We’ve also included tips on what to look for and how to finance it smartly with a COE car loan.

What Is a COE Car, Anyway?

A COE car refers to a vehicle that has had its Certificate of Entitlement renewed after the initial 10-year period. These cars can be driven for another 5 or 10 years, depending on the renewal. While some might see them as “past their prime,” the right COE car can still offer performance, comfort, and value, especially when paired with a well-structured used car loan in Singapore.

Learn more: The Impact of COE Market Trends on Your COE Renewal Loan

1. Pick the Right Brand & Model

When you’re buying a COE car, the first thing you need to consider is the brand and model. Some cars age better than others, holding their value and keeping their style intact over the years. Look for models that are known for their durability and timeless design.

• Japanese cars like Toyota, Honda, and Nissan are great choices. These brands are known for their reliability and longevity, so even if a car is 10 or 12 years old, it can still be in great condition and drive like new.
  
• European models like BMW or Audi are also popular, though they tend to come with higher maintenance costs. However, if you pick a well-maintained model with a relatively low mileage, you can get a car that looks sleek and runs smoothly.

2. Prioritise Low Mileage & Strong Service History

To avoid ending up with a money pit, always check a COE car’s mileage. A car with fewer kilometres clocked is likely to be in better mechanical condition, and more enjoyable to drive.

Aim for cars with less than 150,000 km on the clock. When shopping for a used COE car, always ask for the car’s maintenance history, including any major repairs or parts replacements.

3. Go for Features That Still Feel Premium

Many COE cars were once premium models with luxury features – meaning you could enjoy extras like:

• Leather upholstery
• Reverse cameras & parking sensors
• Sunroof & infotainment systems
• Keyless entry & push start

When viewed this way, a COE car could offer more bang for your buck (especially when paired with the right COE car loan) than a brand-new model.

4. Inspect It Like a Pro (or Hire One)

Even if a COE car looks good, it pays to have a professional inspection done, or bring someone knowledgeable with you.

Key things to check:

• Undercarriage rust
• Engine oil leaks
• Suspension wear
• Tyre and brake condition

These help avoid unexpected costs that might eat into your budget.

5. Finance It Smartly With a COE Car Loan

Even with a lower price tag, most of us aren’t paying for cars in full. That’s where a COE car loan comes in.

At Tembusu Financial Services, we offer used car loans in Singapore that are:

• Transparent – no hidden fees or surprise charges
• Fast – quick approvals to secure your ideal car
• Flexible – customised tenures and repayment plans

Whether you’re renewing a COE or buying a second-hand vehicle, our solutions are designed to help you drive away stress-free.

Learn more: Hidden Costs to Watch Out for When Getting a Used Car Loan in Singapore

6. Know Your Resale Options

One of the advantages of purchasing a COE car is that it still holds some residual value at the end of its COE lifespan. COE cars can be deregistered and sold to a scrap dealer, so you’re not stuck with a depreciating asset forever.

Ready to find a COE car that feels like an upgrade?

Just because it’s not fresh from the showroom doesn’t mean it’s not worth your time. The right COE car can be stylish, reliable, and surprisingly affordable – especially when backed by a smart COE car loan and professional support.

Let Tembusu Financial Services help you finance your next vehicle with our flexible used car loan in Singapore. Contact us today.