I read your column last week about the risk of buying a car now when certificate of entitlement (COE) prices are sky-high, lest I find myself with a car that is worth less than its outstanding loan when premiums slide from 2024. That is sound advice, but what can I do if my car’s COE is expiring soon?
Holding off a car purchase works best for those with more than one vehicle or those who are contemplating buying their first car.
For those owning a car with an expiring COE, it is a bit more tricky.
One option is to buy a used car. While used-car prices tend to move in tandem with those of new cars, it is often possible to still land a bargain in the time of lofty COE prices. Of course, you have to exercise a bit more caution as well. You can follow the tips at this website.
You can buy a car which is seven years or older. This way, you minimise your depreciation and have access to a car until COE prices soften. You also break your cycle of owning an overpriced car, since COE supply follows a 10-year ebb-and-flow pattern.
Another option is to go without a car for the time being. There are a number of car-sharing companies here. This option gives you access to a car without hefty capital outlay, and you do not have to worry about insurance, road tax and, often, parking.
For trips where a car is not necessary, public transport is a good alternative.