Buying a car in Singapore: everything you need to know
Purchasing a car in Singapore is a significant undertaking. True, cars can cost up to six times as much in this country as they do in other countries. Sure, our public transportation system is excellent, and car-sharing is an option if you only need to drive once in a while. But there's always the allure of having your own car: road excursions, visiting all of Singapore's hidden gems and shopping trips where you can bring your big, bulky purchases home.
This article will give you an in-depth guideline on what buying a car in Singapore will entail.
1. Certificate of Entitlement (COE)
Anyone who wants to register a new car in Singapore must first get a Certificate of Entitlement (COE) for the vehicle category they choose. For ten years, the COE represents the right to car ownership and the use of limited road space. COE costs fluctuate over the years but it has been on an upwards trend in recent times.
The COE for cars with engines up to 1,600cc and 130bhp and electric vehicles with Maximum Power Output (MPO) up to 110kW (147bhp) ended at $73,801 (up from $68,001), while the COE for cars with engines greater than 1,600cc and 130bhp and electric vehicles with Maximum Power Output (MPO) above 110kW (147bhp) is $100,684 (up from $95,889). These figures are based on the latest bidding results from 1st bidding in June 2022.
2. Loans & instalments
It's likely that you won't have enough cash to pay the auto ownership in full. But that's fine; after all, that's why we have loans and instalment payments. The maximum loan tenure for cars in Singapore is 7 years.
Cars with an Open Market Value (OMV) of less than $20,000 are subject to a maximum loan amount of 70% of the car price. However, if your OMV is greater than $20,000, the maximum car loan is limited to 60% of the vehicle's cost.
3. Road tax
In addition to COE, all vehicle owners must pay a necessary road tax before driving their car on the road. The majority of options are either yearly or six-monthly renewable.
Before renewing their road tax, drivers must complete requirements such as obtaining motor insurance, passing a vehicle inspection, and paying fines.
4. Insurance
You could always purchase basic auto insurance to save money, but why cut corners on something you've already spent money on? Depending on the carrier, comprehensive automobile insurance may include coverage for fire, theft, death or harm to others, damages, and medical costs, among others. So, before deciding on one, shop around.
5. Miscellaneous spending (parking fees, petrol, maintenance and more)
Parking rates in Singapore can be expensive due to space limits. The majority of drivers here will find season parking near their homes or offices.
You'll also need to account for weekend parking at malls and attractions, which will likely cost you $190 per month. On top of that, you'll need to budget for gasoline and necessary car maintenance.
Conclusion
Buying a car in Singapore is a decision you must make with both eyes open and after having factored in all the costs. While we are a car dealership that benefits from our customers purchasing cars from us, we do understand what financial commitment it is to own a car.
Nonetheless, you must admit that the freedom and convenience of owning your own vehicle are unmatched. If you need more information about car ownership, be it buying a new or used car, please don’t hesitate to contact us here. Our consultants will give you their best advice to suit your needs the most. Check us out for full loan packages and a variety of cars!
