COE renewal is a significant financial transaction, and making mistakes can cost you thousands of dollars. Here are the top 10 mistakes to avoid.
1. Waiting Until the Last Minute
Starting the renewal process too late can leave you with limited financing options and unnecessary stress. Begin at least 3 months before your COE expiry date.
2. Not Comparing Financing Options
Accepting the first loan offer you receive without comparing alternatives can cost you significantly. COEPLUS compares rates from 15+ lenders for free.
3. Choosing the Wrong Renewal Term
Automatically choosing 10 years without considering whether 5 years might be more appropriate for your situation is a common mistake. Evaluate both options carefully.
4. Ignoring the PQP
Not understanding how the PQP is calculated and how it affects your renewal cost can lead to financial surprises. Use the COEPLUS calculator to plan ahead.
5. Forgetting to Review Insurance
COE renewal is the perfect time to review your motor insurance. Many owners miss this opportunity to save on premiums.
6. Not Checking Your Credit Score
Applying for a loan without knowing your credit score can lead to rejection or unfavourable rates. Check your credit report before applying.
7. Overlooking Early Repayment Options
Not understanding the early repayment terms of your loan can be costly if you want to pay off the loan early.
8. Missing Tax Deductions
For commercial vehicle owners, COE renewal costs may be tax-deductible as a business expense. Consult your accountant.
9. Not Getting Everything in Writing
Always ensure all loan terms and conditions are clearly documented before signing anything.
10. Going It Alone
Navigating the COE renewal process without professional help can be overwhelming. COEPLUS provides free expert guidance throughout the process.
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