Car Resale Costs Singapore | Buying Used Cars in Singapore

Budgeting | Singapore
by Priyadarshini 14 March 2022

Buying a new car in Singapore nowadays is a challenge in itself. Unless you can afford the 50 percent – 60 percent Loan-to-Value (LTV) “cover charge” to join Singapore’s “club” of new car drivers, it is quite tricky. But wait, there is a method for you to become a member of the club. Call it a side entrance for those who are determined enough to enter, known as the used car. In this blog, we tell you car resale costs in Singapore. 

Aside from being less expensive, a used car allows you to get behind the wheel much faster. How quickly? In comparison to waiting months for a new car, you could be driving down PIE in less than a week. Read Ryan Ong’s article “Used Cars in Singapore: Why They’re Worth Buying” to learn about some of the advantages that used cars provide.

Loan Restrictions

Earlier this year, used car buyers had a short 60-day reprieve from the MAS restrictions, but it was not extended.

As a result, you will be subject to the following loan restrictions:

All used automobile loan terms are limited to 5 years.
If the Open Market Value (OMV) of your car is $20,000 or less, your maximum Loan-to-Value (LTV) is 60% of the purchase price.
If the Open Market Value (OMV) of your car exceeds $20,000, your maximum Loan-to-Value (LTV) is 50% of the purchase price.

Vehicle Depreciation

Vehicle depreciation is the amount of “value” that your car loses over a 10-year period due to daily use. After that 10-year term, the only value left in your vehicle would be its “scrap” worth.

To make things easier for automobile owners/buyers, MAS used a straight-line depreciation approach to calculate the OMV of vehicles. Your car loses 10% of its value each year if you use this strategy.


Have you ever wondered why certain used automobiles are so much cheaper than others? Yes, the OMV as well as condition issues such as dents, engine difficulties, mysterious stains on the backseat, and an interior that smells like a nightclub restroom will have an impact on the resale value.

But so will the Preferential Additional Registration Fee (PARF) and Certificate of Entitlement (COE) Rebates, which are also considered when determining the resale value of the vehicle.

Here’s the distinction between the two:

A PARF vehicle has not been de-registered before the conclusion of its 10-year depreciation period. This qualifies it for both the COE and PARF Rebate, which ranges from 50% to 75% of the Additional Registration Fee (ARF) paid on the vehicle.

A COE car is ineligible for the PARF Rebate since the owner elected to pay the Prevailing Quota Premium (PQP) for an additional 5 or 10 years rather than de-register the vehicle. This implies that when you de-register, you will only receive the COE Rebate.

Transfer Fee

When you acquire a used car, you must pay a fee so that the vehicle can be registered in your name. Fortunately, this amount is less than the expense of taking your girlfriend to the local hawker center for chicken rice – only $11.

However, if the car you’re buying is transferred to you between the fourth and sixth months following de-registration, you must pay an extra charge.

Road Tax

Although this is not a component in your used car financing, it is something that all used car owners should be aware of. It’s an additional tax computed based on the size of your car’s engine – the larger the engine, the higher the price.

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car resale
Road tax
used cars
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