COE Loan vs Commercial Vehicle Financing
The right financing depends on what you plan to use the vehicle for, your borrower profile, and the loan terms that fit your budget. This table highlights the key differences.
| Factor | COE Loan | Commercial Vehicle Loan |
|---|---|---|
| Purpose | Finance the COE premium — the right to own a vehicle for 10 years | Finance the purchase of a commercial vehicle for business use |
| Best For | Individual car owners, COE renewal borrowers | SMEs, sole proprietors, fleet operators, delivery businesses |
| Loan Amount Range | Typically S$10,000–S$80,000 depending on COE category | Typically S$20,000–S$150,000+ depending on vehicle type |
| Tenure Options | 24 to 60 months (shorter tenures common for older vehicles) | 24 to 60 months (longer tenures may be available for higher amounts) |
| Vehicle Types | Passenger cars (Cat A, B), commercial vehicles (Cat C), motorcycles (Cat D) | Vans, lorries, mini-buses, pick-up trucks, box trucks, prime movers |
| Eligibility | Citizens, PRs, some EP holders; min S$30K–S$40K annual income | Business entities and self-employed; may require business financials |
| Documents Required | NRIC, payslips, CPF, IRAS NOA, bank statements | Business registration, financial statements, PC/COE, vehicle documents |
| Typical Use Case | Renewing COE for existing car, buying a used car with COE | Replacing fleet vehicle, expanding delivery capacity, upgrading lorry |
Broker vs Direct Lender: Which Route Fits?
Both approaches have merits. The table below compares the key factors to consider.
| Factor | Broker (CoeLoans) | Direct Lender |
|---|---|---|
| Applications Needed | One form — we match you with suitable lenders | Multiple — you apply to each lender individually |
| Quote Comparison | We present offers from multiple lending partners | You compare quotes manually across lenders |
| Processing Speed | 1-4 hours to initial lender contact | Varies; typically 1-3 business days per application |
| Cost to Borrower | Free — no fees for our service | Free — lenders do not charge application fees |
| Lender Choice | Access to our network of licensed lending partners | Limited to that lender's own product range |
| Support | Guidance through the matching and initial process | Direct relationship with lender from the start |
| Best For | Borrowers who value time savings and broad market view | Borrowers who already know which lender they prefer |
Estimated Repayment Comparison
Illustrative monthly repayment estimates for different loan amounts and tenures. Actual rates and terms depend on the lender, your credit profile, and vehicle type.
| Loan Amount | Tenure | Est. Monthly (COE Loan) | Est. Monthly (Commercial Vehicle) |
|---|---|---|---|
| S$30,000 | 24 mo | S$1,375–S$1,458 | S$1,375–S$1,458 |
| S$30,000 | 36 mo | S$958–S$1,042 | S$958–S$1,042 |
| S$30,000 | 48 mo | S$750–S$833 | S$750–S$833 |
| S$50,000 | 36 mo | S$1.597–S$1,736 | S$1,597–S$1,736 |
| S$50,000 | 48 mo | S$1,250–S$1,389 | S$1,250–S$1,389 |
| S$50,000 | 60 mo | S$1,042–S$1,181 | S$1,042–S$1,181 |
| S$80,000 | 48 mo | — | S$2,000–S$2,222 |
| S$80,000 | 60 mo | — | S$1,667–S$1,889 |
Estimates based on indicative interest rates of 3–5% p.a. for COE loans and commercial vehicle financing. Actual rates depend on lender assessment. Use our application form to get personalised quotes.
When to Choose Each Option
Choose a COE Loan If:
- ✓ You need to renew your COE after Year 10
- ✓ You are an individual car owner
- ✓ Your loan requirement is under S$80,000
- ✓ You have stable employment income
- ✓ You want shorter loan tenures (24–48 months)
Choose Commercial Financing If:
- ✓ You run an SME or are a sole proprietor
- ✓ You need a van, lorry, or other commercial vehicle
- ✓ Your loan requirement exceeds S$80,000
- ✓ You are expanding or replacing a fleet vehicle
- ✓ You prefer to use business financials for assessment
Not sure which option fits?
Tell us about your situation and we will match you with lending partners suited to your needs. There is no cost and no obligation.
Check Your Options