Car Ownership in Singapore: 10 Things to Consider
Are you thinking of owning a car in Singapore but not sure what you need to consider? If you are new to the car market in Singapore or you are a foreigner moving over, here are 10 things that you should think about before your car ownership in Singapore.
1. Cost of New Car
There are various costs that comes with car ownership in Singapore – firstly, it is the Open Market Value (OMV) of the car you are looking to buy. This is the price of the car that people in other countries also pay for.
2. Singapore Taxes
Secondly, there are various forms of taxes payable when one buys a car in Singapore – Additional Registration Fee (ARF) that is based on the OMV of the car, Excise Duty, GST and Certificate of Entitlement (COE).
3. Your Own Budget for your Car Ownership in Singapore
Figure out how much you can budget for a car, so that car ownership makes your life easier, not weigh it down financially.
4. How to Finance for your Car Ownership in Singapore
Consider how you are going to finance the car – either by paying full upfront or taking a loan. If you choose to take a loan, you should take note of the available financial assistance available, other loan obligations you have, how much and for how long you can loan for, how much down payment you need to make now, and the loan limits set by Monetary Authority of Singapore (MAS).
The loan limit is dependent on the OMV of the car as indicated below, as of May 2016.
5. Your Car Ownership in Singapore: Car Financing Costs
If you have decided to take up a loan, you should consider the interest rates. In addition, the interest rate you get may be affected by your credit score, so it is an important factor to consider as well.
MHG Cars is now offering a promotional interest rate of 1.98%. Check out our latest car prices on our Facebook Shop. Make sure to Like our Facebook page to be updated with our car packages!
6. Your Car Ownership in Singapore: Running Costs
In addition to the upfront costs, there are also running costs that one needs to take note of in the longer run. Consider the total amount you will need to fork out for the entire duration of your car ownership – including road tax, car insurance, Electronic Road Pricing (ERP), parking costs, petrol and maintenance expenses.
7. Fit for Your Own Comfort and Needs
Before deciding on that car you are eyeing on, check to see if the car fits your comfort and needs. You can ask these questions before settling on a car:
- How is the handling of the car, its acceleration and cornering ability?
- Is there any engine noise?
- Are you comfortable in the seat?
- Are the controls and buttons comfortable for you to reach while driving?
- Is the view of the mirrors clear from your driving position?
- Is there enough leg room for all seats?
- Is the storage area big enough for your needs?
- If you have kids, can it accommodate a child seat?
8. Where to buy from
After having decided to buy a car, you need to choose between buying from an authorised dealer or parallel importer. Choosing an authorised dealer can mean more reliable services, better aftersales support and ease of maintenance with better stock of replacement parts. On the other hand, going with a parallel importer will allow you to have a wider range of models to pick from and cars are usually better priced.
To get better deals and prices, going with a parallel importer is much recommended. However, just be sure that the parallel importer that you choose is established and trustworthy. Backed by our exclusive working partners, Money Max and Hyper, MHG Cars is the top trusted choice for prospective car owners.
9. Ease of Maintenance
The make and model of the car you choose to buy will affect the ease or difficulty in obtaining replacement parts which could mean an increase in maintenance expenses. Do your research online and tap on your salesman’s knowledge.
MHG Cars has a team of friendly and dedicated salesmen who are well equipped with the knowledge of cars and current market trends to assist you to make an informed decision.
10. When to Buy a Car
Deciding on the best time to buy a car can be dependent on many factors, but it can have a great impact on the amount you have to spend. Compare the current interest rates and price of the COE to previous periods and gauge if it is a good time to buy a car now. Furthermore, if the car model you have set your eyes on is newly launched, be ready to pay more. If your budget of a new car is tight, choosing the best time to purchase a new car can indeed make a lot of difference.
After making the decision to go ahead with owning a car in Singapore, check out How to Get the Best Deal on a New Car to secure your car with the best deals!