Car Prices in Singapore | Guide to Buying a Car in Singapore
Car Insurance | Insuranceby Priyadarshini 31 December 2020
Most Singaporeans would agree that buying a car in Singapore is a pretty expensive deal. The car prices in Singapore are exorbitant and that is mainly because of high COE costs. However, we are not saying that buying a car in Singapore is impossible. Read this blog to know how to save money on car prices in Singapore.
Exorbitant Car Prices in Singapore
Car prices in Singapore are high as there is a lack of land space and COE. For the ones who are not familiar with COE, it is known as the Certificate of Entitlement (COE). It comprises of various components. Also, there are factors like OMV or the open market value that is decided by the customs of Singapore. The OMV includes the price of the care, freight charges, insurance costs, and other costs from the sale to delivery of the car. Additionally, there are Registration Charges, Additional Registration Fees, Goods & Services Tax, Excise Duty, Vehicular Emission Scheme, or VES, Local Dealer’s Margin among other costs.
Most Singaporeans opt for a car loan to buy a car. This will allow borrowing an amount that is 60% – 70% of the car’s total OMV or open market value.
How are COE prices calculated?
COE gives you the right to own, register, and use a car in Singapore. This is an allowance for 10 years and is responsible for the exorbitant car prices. Often COE prices fluctuate in Singaporean markets depending on the demand for vehicles. There are different categories of COE depending on the cc and power of the vehicle you choose.
How Can you Buy a car on a Budget in Singapore?
The only option to buy a car in Singapore is to take up a car loan. However, if you do not want to take up a loan and you are not in a position to shell out so much money, you can opt for a second-hand car. A second-car will be cheaper than the cheapest cars available in the market. You get the idea right? Any used car would cost you less than a brand new car. The only factor you should think about is whether a buying cheap car is worth the money you pay? When it comes to buying second-hand cars, you must check the depreciation value and cost of repairs you have to do. Also, check for the maintenance costs you will have to incur. Car prices in Singapore are always on the higher side and it’s best you do all the calculations before you make the purchase.
Ongoing Costs of a Car
Your expenses for buying a car doesn’t end with just purchasing the car. In fact, you can say your expenses just begin when you purchase a car. There are many other costs, except for the price of the car, car insurance, GST, etc. These are known as ongoing costs which you have to pay once you buy a car. For instance, there is a road tax which you can pay half-yearly or yearly. Then there are fuel costs, which is a monthly cost you have to undertake. This depends on your usage of the car, how frequently you drive, and how long distance you cover.
Next is car insurance. This is of utmost importance and you cannot avoid this expense. Car Insurance is the only thing that will protect your car against all unpredictable situations. Also, it helps you save extra costs in case of accidents, theft, or other damages. Other than the above-mentioned costs, you will have to incur a few other charges like parking, ERP costs, and time to time maintenance and servicing of your car.
So, now you have an idea of what buying and owning a car in Singapore may look like on your finances. We recommend you calculate your income and how much you can afford to spend on purchasing a car and then make a decision. Research thoroughly on the car prices in Singapore and then go ahead. Compare car insurance policies and choose the best that suits you!
Moving to Singapore