Ehhh bro, I just got married!
Waa, congrats congrats!
Eh wait, I thought you no girlfriend?
Aiya you don't CB la
Her name is Michelle
She's superrrr smooth and super white I tell you
And when I ram her, she's super loud
Nice? We just ROM
Many people know that buying a car in Singapore is expensive af
You can buy two of the same car in Malaysia for the same price
And you can drive it there forever instead of just 10 years
This is why Singapore guys always joke that they marry twice
Once with their wives, and once with their car
One, you just marry for convenience sake
And one you marry because you really love her
But how much do you really know about car ownership in Singapore?
It's so complicated that it seems like only car owners, other than ah sia kia
will know how it works
So here are 10 facts about car ownership in Singapore simplified just for you
Here's why owning a car is so complicated
It's not like buying this T-shirt, where you can pay just based on the price there
You see, there are many fees involved when you buy a car and it's not just COE
Let's just use this car, a Toyota Camry, as an example
First, we have the OMV, which is known as the Open Market Value
This is how much it costs for a dealer to buy a car over to Singapore
Think of it as the cost price of the car la
Now, for this car, based on a list in One Motoring website, it costs about $30,000
Then there's the GST
We all know what that is la, so for this car it's about $8,700
Then there's the normal registration fee of $140
And there's the additional tax known as ARF, or the Additional Registration Fee
Think of it as an additional fee la, and it's a certain percentage of the OMV
For this car, it's roughly about $35,000
Yes, that fee is more expensive than the cost price of this car, no kidding sia
Next we have the VES
but that one is quite new la, so we won't confuse you with that yet
But anyway, for this car there's an extra $10,000
And finally, there's the COE
Now, based on the COE of $45,000
The total cost price of this car is at about $129,000
And according to the same list, the selling price of this car is $153,000
Because the dealer need to make money mah
So a car that costs only $30,000 to import in
has now ballooned to over $150,000 because of so many papers
So, this car isn't expensive
These are the expensive ones
When you go to any website, you'll see that
dealers just like to sell you with this - monthly instalment
But any car owner will tell you that that's just the fraction of a car
Firstly, you'll need insurance which can be up to $3000 a year if you're young
Which means it's about $250 a month
Then there's the petrol cost which is about $200 to $400 a month
Then there is season parking which can be up to $110 a month
if you live in a new HDB
Your office might charge you another $100 a month
and outside hourly parking might add up to $100 as well
You'll also need to maintain and service your vehicle
which can come up to a few hundred dollars every six months
which is about $100 a month
And we haven't even factored in ERP, car washes, summons, etc
In total, that's more than $1,000 a month
Still think that owning a car is just about monthly instalments?
In Singapore, every car has to be insured
and it's the law you know, it's not something optional
There are many insurance available, but most will get the comprehensive ones
Which cover you even if you're at fault
Now let's say an incident happened and it's not your fault
You won't need to pay anything
But if it's your fault, then you have to pay an amount which is called excess
which is determined by your insurance
It can be $500 to even $3000
Once you have paid your excess, the repair cost, no matter how high
will be borne by your insurance company
This is why you're always encouraged to have a camera in your car
This is to protect you if someone did something wrong to your car
and there's no witnesses
Now, since we're on the topic of insurance, let's talk prices
For some people the insurance premium can be pretty crazy
and it's because of these factors
Number one, they're young
Number two, they just got their license
Number three, their car is powerful or a sports car
Number four, they were involved in at-fault accidents before
In some cases, the premium can balloon up to $5000 - $6000 for a Japanese car
But on the other hand, if you're old, experienced, safe and drive a normal car
Your insurance could just be in the hundreds
Because every year, you can get an additional 10% discount on your premium
If you didn't have a claim
And it's up to a total of 50%
In other words, it's very hard to determine the cost of your insurance
All you need to know is that the older and safer you are, the cheaper it will be
Now, let's talk about something that has confused many people should we? COE.
Let's use an example
After you buy this shirt,
you can't wear it and walk on the streets until you buy a license to do so
So you need to pay for a license that lets you wear it for say, 10 times
To buy that license you have to bid for it online
Yeah, literally bidding
But only 20 people can make the bid
So if you're one of the 20 people who bid the highest, you'll get this license
Same goes for COE
The number of COE available for bidding
will depend on the number of cars deregistered
So if you or your dealer managed to bid for it
you're entitled to drive the car for 10 years
If not, you can't technically let the car on the road at all
In the latest bidding, a small car COE is $42,000
Yeah, that means each year you spend $4,200 for the rights to be on the road
This is one of the most difficult things to understand
What happens if your COE expires?
The simple answer is this: You can either scrap your car and get back some money
or you can extend the COE
If you scrap your car, you'll get back what is known as the PARF value
It's a percentage of the ARF that you have paid
Remember ARF? It's the additional fee that costs more than your car
Depending on when you scrap your car, the amount you'll get back is different
If it's after 10 years, you'll get back 50% of the ARF
So let's say your ARF is $34,931
You'll get back $17,465.50
And you'll also get some cash in return for the car body
But that's very low la, like a few hundreds only
Now if you scrap before 10 years, you'll get more of the ARF and COE rebate
For example, if you scrap at the eighth year, you'll get 55% instead of 50% of the ARF
In other words, if you deregister your car earlier, you'll get more money back
Anyway, if you deregister before you use up your 10 year COE
You'll also get back a certain amount based on how many years it's left with
For example, if your COE is $10 and you scrap your car in the 9th year
you will get back $1
Of course, if your COE is $10 you better wake up from your dream
Because where got COE $10 one?
So what if you decided to extend your COE, maybe 5 or 10 more years?
Well if you extend your COE by 5 years, you can no longer extend it
But if you extend it by 10 years, you can continue to extend it
But here's the thing, the moment you extend your COE
you can no longer get back any ARF
Yes, not even a single cent
Now you know why people would rather scrap their car and buy a new one, right?
Do you fasten your seatbelt when you're sitting at the back of the car?
No? Then you're not just risking your life in the event you get into an accident
but you're risking the driver's driving record as well
You see, when a car is caught with passengers that didn't wear the seatbelt
It's the driver who gets the demerit point
Because you know la, the driver is responsible for the passenger's behaviour
So next time when you're riding Uber or Grab, help the driver la, put on the seatbelt
For your safety as well as the driver's rice bowl
In the past, you always see this kind of advertisement
Now, you can't
In an effort to prevent people from falling into an endless debt，
you can now only borrow up to 70% of the purchase price
And the maximum loan period is 7 years instead of 10 years
Lets say this car is $100
You can borrow $70 up to 7 years and you have to pay a downpayment of $30
And given that a car usually costs around $100,000
be prepared to pay $30,000 cash to get a new car
Now, how about second-hand cars?
The same rules apply
In other words, unless you have tens of thousands of dollars on hand
You can forget about getting a new car
Nowadays a new Toyota car could theoretically be more expensive
than a 9-year-old BMW
Reason being, the COE back then is so much cheaper
In other words, it's true that the prices of cars is very dependant on when you buy it
Now, when COE prices are very high
the cost of new cars and secondhand cars are very expensive
If the COE prices are low next month
the cost of new cars and secondhand cars will be so much cheaper
In other words, timing is very important
One of my colleagues knows a person who made money by
buying a car when the COE is very low, and selling it when the COE is high
But of course la, for most of us it's always the opposite
For many of us, getting a car provides us with convenience
But let's face it, with private hire cars everywhere nowadays
it's more convenient to take them
So getting a car is more for a status symbol than convenience
Unless you got kids or parents to ferry around la
So now that you know more about getting a car in Singapore
Do you feel like giving up your car dream now?
Or are you more determined to get your dream car?
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