How To Buy A Car
in Singapore

1. Overview

Most of you should know that Singapore is a really tiny country with limited space on the roads. To prevent traffic congestion, the Singapore government introduced the Vehicle Quota System (VQS). This system which allows the authorities to control the number of cars out there.

To buy a car, you will need to bid for a COE (Certificate of Entitlement) and also pay road tax. Don't worry - this bidding and other payment details are done by your car dealer. However, it is still useful to know the the total cost of your vehicle is given by the following.

Total cost of a car in Singapore = Cost price + Import duty + Registration Fee + Additional Registration Fee + COE + Road Tax
 

2. Buying A Used Car

Looking for a used car in Singapore? One approach is to go look at the newspapers or scour the Internet. Personally, I like to look at the Saturday edition of the Straits Times. It contains tons of classifieds showcasing almost all kinds of brands in all conditions. One point to note is that you should do your calculations by taking into account depreciation.

You need to take into account the number of years left in the COE (a COE lasts for 10 years) and the value of the car after the COE expires (this is called the OMV). In general, the depreciation (per year) of a car is given by:

(Current market price of car - OMV) / No. of years left in the COE

3. Buying A New Car

One of the best places to get a new car will be a place called Leng Kee Road. Most of the branded car show rooms are located there: Honda, Toyota, Saab, BMW, Mercedes. Most car sales people are friendly and will be willing to give you a test drive on any model you want. Be wary of the prices they quote though - some of the prices may seem low but may require you to take up a high interest rate bank loan, for example.
 

Conclusion

Buying a car in Singapore is not difficult - but it can be expensive. My advice is to do your research, ask some friends on which model is good, then proceed to check out the dealers or newspapers. Good luck!

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