How Much is the Cost of Owning a Used Car in Singapore
Singapore has an excellent market for used cars. Many people prefer SUVs, but there is a big market for luxury cars as well. Their prices are reasonable, and there is a wide variety of makes from Japanese and Korean to Continental cars to choose from, meeting the needs and budget of the buyer.
The cost of owning a used car in Singapore can vary depending on the vehicle’s make, model and manufacturing year. The concerns many people may have for second-hand cars are the increasing maintenance and repair costs. So here are three things to consider when setting your budget for a second-hand car.
The Purchase Price of a Used Car
The purchase price of a used car includes a down payment fee and loan amount.
Based on the current regulations, a car loan can be acquired up to 70% of the purchase price if the Open Market Value (OMV) of a car is less than or equal to $20,000. If OMV is above $20,000, the granted loan will become up to 60% of the purchase price.
Besides the purchase price, the registration fee for the license plate number is something that needs to be considered as well, which costs $256.80 for cars. This amount is payable during the standard registration procedure.
While applying for a car loan, the monthly budget should be taken into account, as the loan will be required to be paid in instalments. To determine the monthly instalment, estimate the payable amount through Land Transport Authority calculator.
The Maintenance or Running Cost of a Used Car
The maintenance and running cost of a car is subject to the make and model of that car. Here is a breakdown of the expenses involved.
This includes frequent oil changes, tire rotations and other regular tasks, which can be expected to cost $200 per session for routine vehicle tuning or more if parts need replacement. Usually, car owners are suggested to service used cars every six months or every 10,000 km.
COE or PARF
COE, or Certificate of Entitlement, is a document that certifies the right of car ownership for ten years. The COE factors in the used car’s value to get some money back if the car owner decides to deregister the vehicle before the tenth year. According to the LTA policy, if a vehicle is less than ten years old, it becomes eligible to obtain a Preferential Additional Registration Fee (PARF) rebate in addition to a COE rebate when the car owner sends it to the scrap yard. This PARF rebate depends on the car’s age and is generally higher for newer cars. The industry terms such vehicles as ‘PARF cars’.
If a vehicle owner in Singapore opts for a ‘COE car’ over ten years old, he/ she will not be able to cash in on the PARF Rebate. A COE car will only yield a COE Rebate if the vehicle is scrapped before its COE expires. Therefore, when calculating the second-hand car price, factor in how much it may pay back. COE cars are much cheaper than PARF cars due to their advanced age. But even though they might be more affordable, COE cars might require more trips to the workshop for maintenance and repairs (Read this to find out what you need to consider when buying a used car in Singapore!).
A car owner must renew the road tax for his/ her vehicle half yearly or annually. The amount ranges from $400 to $600 for a regular engine capacity of 1.6 litres. varies depending on the vehicle’s specifications. The road tax renewal rate can be calculated on LTA’s website. When purchasing a used vehicle, the buyer must ask if the seller has paid the road tax. If the road tax is paid, the remaining road tax on the car would be transferred to the buyer. This renews once the previous period that the seller has paid for comes to an end.
Hidden Cost of Owning a Used Car in Singapore
The buyers need to consider all the miscellaneous fees for the second-hand car price. While these are not immediately apparent, they must be aware of them.
Before paying the road tax, it is mandatory to send the car for inspection at VICOM every two years if the vehicle is more than three years old. Cars above ten years old must be inspected yearly. Moreover, buyers need to pass the inspection before purchasing car insurance; the review costs $64.20.
There are parking costs to consider which a buyer can expect to pay up to $190 per month for season parking. Those staying in a condominium will need to confirm whether the parking costs are included in the condominium maintenance fees. In addition, buyers may pay extra charges if there is more than one car. Finally, buyers may need to check with their companies if the office building’s parking fees are claimable for those who drive to work.
Singapore has Electronic Road Pricing (ERP) gantries installed in high-traffic areas, and a fee is deducted for vehicles passing through during peak hours. This system is to manage the traffic congestion rates in Singapore. Though a common sight, it is a hidden cost people tend to neglect in their costing. For example, the average motorist can expect to pay up to $5 daily if they travel through several gantries on the way to work in the Central Business District Area. They will incur an ERP violation and will have to pay a fine for passing ERP without, or with insufficient, monetary value in the cash card.
Lastly, the buyers of used cars should estimate and budget for petrol top-ups monthly. Different models can have varying fuel consumption amounts, so compare using the calculator to see if it meets the budget.
Is it worth Owning a used car in Singapore?
Owning a used car in Singapore is a perfect solution for someone who prefers a vehicle to ferry his/ her family around or who needs to be free from public transport. Besides, most used cars are reliable, as typical usage in Singapore tends to be short distances on paved roads, minimising wear and tear. A used car might be as good as a new one if the previous owner maintained it well.
Buying a used car from a trustworthy dealer will help mitigate the costs. The experienced salesperson can evaluate the condition and advise the buyer on what used car to select.
Car World Automobile Pte Ltd provides the best experience to their clients, facilitating them to buy a budget-friendly and reliable car.
Contact Car World Automobile Pte Ltd or visit the showroom! Car World’s experts have extensive experience with Korean, Japanese and Continental cars, providing the best options to their customers to get them their dream cars.