Buying a used car in Singapore can be costly because of the government’s increased fees and tax rates. The final costs of buying a used car in Singapore can vary widely from tens to hundreds of thousands of dollars based on various factors like the vehicle’s make, design, age, condition, and government regulations.
Singapore’s government has been trying to limit the city-traffic state’s congestion by raising the cost of car ownership to sky-high levels. Several regulations and the COE (Certificate of Entitlement) system work together. This means that the average price of a new car in Singapore can significantly exceed S$100,000, which makes it out of reach to most people. As a result, people who require a car but cannot purchase a new one often turns to purchase a used one.
In 2020, the average used car cost in Singapore was close to S$64,000, as reported by sgCarMart, a prominent online car store in the country. Although cheaper than the price of a brand-new vehicle, this remains fairly pricey compared to those in other countries. Used-car prices can vary widely depending on age, mileage, and overall condition. In most cases, the price drops as the vehicle’s age or mileage increases.
Rising gas prices and carbon emissions have shifted toward smaller, more fuel-efficient vehicles in recent years. Prices for best-sellers like the Honda Fit, Toyota Vios, and Mazda 3 have shot up because of this. A 2016 Honda Fit, for instance, may cost approximately S$50,000, whereas a 2016 Toyota Vios may cost approximately S$60,000.
BMWs, Mercedes-Benzes, and Audis, among other luxury brands, are also popular among the well-off. However, such vehicles’ purchase and upkeep costs can be notably higher because of greater COE prices. An equivalent 2016 model year BMW 5 Series could even cost approximately S$120,000, while an equivalent 2016 model year Mercedes-Benz E-Class could cost approximately S$130,000.
The COE, or Certificate of Entitlement, is another consideration when pricing a used car in Singapore. The COE auctions off monthly quotas to regulate the total number of cars on the road. Based on market conditions, the price of the certificate of entitlement (COE) can add a sizable sum to the final price of a pre-owned vehicle. Category A COEs (for vehicles with engines smaller than 1600 cc) cost about S$41,000 in February 2021, whereas Category B COEs (for vehicles larger than 1600 cc) cost about S$50,000. This indicates that the worth of a used vehicle with a more recent COE may be considerably higher than that of an older one.
Owning a vehicle in Singapore comes with a price tag beyond the initial investment. Insurance, taxes, and upkeep are all part of this category. Insurers use variables like a person’s age, years on the road, and claims history to set premium costs. The annual road tax is anywhere from S$90 to S$3,760, depending on the vehicle’s engine power. The cost of repairs can also fluctuate based on factors such as the vehicle’s age, model, and mileage. These are all that determine what to pay when buying a used car in Singapore.
These are the standard components of a used car’s average cost in Singapore:
This is the asking price that a seller has set for the pre-owned vehicle.
The Certificate of Entitlement (COE) is a quota license that, for ten years, grants the owner the right to register, possess, and operate a car in Singapore. The price of a COE is established through a bidding process and is subject to change based on market conditions.
The PARF rebate is just available for vehicles that have their registration revoked prior to the 10th anniversary of their purchase. The vehicle holder is entitled to a refund of the Additional Registration Fee (ARF), but only for a fraction of the payment that was not used.
The Automotive Registration Fee (ARF) is a tax determined by applying a percentage to the vehicle’s Open Market Value (OMV). The Original Market Value, or OMV, of a vehicle, is the amount paid or owed for the vehicle upon its initial registration in Singapore.
This is a fee that must be given to the government on an annual basis to use the city highways. The car’s horsepower determines the road tax that must be paid.
Having car insurance in Singapore is a legal requirement. Insurers use variables like vehicle age, driver’s age, and driving experience to determine premiums.
When the car’s owner changes, this fee must be paid to the Land Transport Authority (LTA).
The interest rate will be applied to the amount borrowed if the buyer takes out a loan to finance the vehicle purchase.
Before the title transfer, the vehicle must pass a safety inspection. The inspection cost varies with each inspection station.
Possible extra expenses include parking, gas, and repairs.
It’s worth noting that the buyer and seller may haggle over the used vehicle’s final sale price. The buyer should clearly understand all the fees and costs associated with purchasing a used vehicle.
If you are wondering how much to pay for a used car, it has been found that the average cost of buying a used car in Singapore varies considerably based on the vehicle’s make, design, year, and condition. Prices can range from about SGD 10,000 – SGD 100,000 or even more. Whether or not the price of used cars in Singapore will keep rising in 2023 is a tricky question to predict. Market, supply, and government regulations on vehicle ownership and transfer all have the potential to influence prices. However, if global semiconductor scarcity causes a lack of new cars, the market for used cars could increase in price. You must do your homework and shop around to get a good deal on a used car. A professional mechanic’s inspection is also strongly recommended before buying a used car.
