Congratulations, you decided to go for it and get your own car once and for all. It’s a huge responsibility here in SG, (but just think of the freedom) but we did the homework for you...
Real talk: owning a car in Singapore is a big deal. It’s true that cars in Singapore can cost up to six times more than they do in other countries. Singapore’s public transport system is pretty decent, and car sharing is another option if you only need to get behind the wheel occasionally, but there’s always the lure of owning your very own ride. Road trips. Exploring all those secluded spots in Singapore. Finally making it to Bollywood Veggies. And visits to IKEA where you can actually bring home your loot yourself.
But before you make that leap, there are a couple things to know: from COE prices to road tax, here we go…
1. Certificate of Entitlement (COE)
You don’t really have an option, anyone who registers a new vehicle in Singapore must first obtain a Certificate of Entitlement (COE) in the selected vehicle category. The COE represents the right to vehicle ownership and the use of limited road space for 10 years. Heads up, the COE prices fluctuate quite a bit but is now at a low – cars up to 1,600cc and 130bhp closed at $42,900 (from $46,778) and the COE for cars above 1,600cc or 130bhp is $51,000 (down from $53,711).
2. Loans and installments
Chances are, you won’t have the full amount in cold hard cash to pay the car dealership but that’s okay, that is why we have loans and payments in installments. For cars with an Open Market (OMV) of less than $20,000, the maximum loan tenure is seven years and capped at 60% of the car price – but if your OMV is higher than $20,000, the maximum car loan is capped at 50% of the car price. Be reasonable!
3. Road tax
On top of COE, there is also the mandatory road tax all vehicle owners must have before their vehicles can be used on the road. Most road taxes are renewable either yearly or on a six-monthly basis. But do note! Before renewal of road taxes, car owners must tick off prerequisites like getting a motor insurance coverage and passing the vehicle inspection, which brings us to…
4. Car insurance
You can always take the cheaper option by taking a basic auto insurance, but why scrimp on something you already splurged on? A comprehensive car insurance on the other hand includes coverage on fire, theft, death or injury to other parties, damages and medical costs and more, depending on the provider. Do some shopping before settling on one.
5. Parking fees, petrol, and miscellaneous
Because there is a space constraint, parking fees in Singapore can be steep. Most drivers will obtain season parking at carparks near their homes, or pay for season parking at their offices. Then you have to factor in parking at malls and on weekends, and buying parking coupons – it’s going to set you back at least $150 per month or more on parking. On top of that you have to set aside money on petrol every month and the essential car servicing. Keep up!
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