To own a vehicle in Singapore, individuals are required to bid for and obtain a COE. The COE system is designed as an auction where interested buyers submit bids, and the highest bidders are awarded the COEs. Once a COE is obtained, it must be registered with a vehicle purchase within a specified period. The COE is valid for ten years, after which it can be renewed for a further period, subject to prevailing regulations.
A COE loan in Singapore refers to a loan taken to finance the purchase renewal of the Certificate of Entitlement. When a car owner renews his COE and takes a loan for it, it is different from a Hire Purchase loan which is done on the onset and the quantum typically covers both the initial COE and the cost of the vehicle or sometimes called machine price.
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