Easy and Hassle-Free Ways to Buy Car Singapore
Buying cars in Singapore is not as easy as it used to be. If you are thinking of getting your own vehicle, it is important to be aware of the requirements and dues that you need to comply with.
Buying a Brand New Car in Singapore
Cars are priced differently in Singapore, especially with the restrictions placed by the Monetary Authority of Singapore on car loans.
Here are the things you will need to pay for when buying a brand new car in Singapore.
1. Registration Fees
– Include a basic administrative fee of S$140 and a processing fee of S$25
2. Goods and Services Tax (GST)
– A form of consumption tax computed based on the car’s value.
3. Open Market Value (OMV)
– This is computed by the Singapore Customs and is based on:
- Purchase cost of the car
- Freight costs
- Incidental charges on the sale and delivery from the place of manufacture to singapore
4. Excise Duty
– An additional form of tax imposed on the car. It is calculated based on 20% of the car’s OMV.
5. Certificate of Entitlement (COE)
– Anyone who wishes to own a car in Singapore must secure a COE. It represents your right to car and vehicle ownership, and the use of Singapore’s limited road space for 10 years.
COE’s fall under 5 categories:
A – Cars 1600CC below and taxis
B – Cars above 1600CC
C – Goods Vehicle and Bus
D – Motorcycles
E – Open
6. Additional Registration Fee (ARF)
– Cars with OMV of S$20,000 and less will not pay for the ARF. Cars with OMV’s that fall in the range of S$20,001 to S$50,000 are taxed 140% of incremental OMV. Cars that cost more than S$50,000 are taxed 180% of incremental OMV.
7. Carbon Emissions-Based Vehicle Scheme (CEVS)
– Owners of cars with carbon emissions not greater than 160g/km are entitled to a rebate, ranging from S$5,000 to S$20,000. Car owners will be penalised with surcharges, ranging from S$5,000 to S$20,000 if their car’s carbon emissions are equal to or greater than 211g/km.
8. Road Tax
– You must secure your road tax before you can use your car on the streets of Singapore. Road taxes are usually renewable on a six-month or yearly basis.
9. Special Tax
– Owners of cars that run on diesel must pay a special tax. The tax is meant to encourage fuel conservation.
Buying a Pre-owned Car in Singapore
If you want to get a car but you’re on a tighter budget, then you might consider getting a pre-owned car. COE prices generally do not go below S$10,000.
Some prefer getting pre-owned cars because they actually depreciate less than a brand new car. The depreciation of a car is greater in its first three years. Depreciation is related to the selling price of the car, so buying a preowned car at a cheaper price means its depreciation will be less.
There are two general categories for pre-owned cars. These are the PARF cars and the COE cars.
- PARF Cars
PARF cars are pre-owned cars that were registered less than 10 years ago. These cars were deregistered earlier than the 10-year expiry of their COE. The owner who scraps his car earlier than the 10-year period gets a rebate called the Preferential Additional Registration Fee or PARF. However, the PARF rebate is only redeemable for first time registered cars.
- COE Cars
COE cars simply are pre-owned cars with its COE already renewed.
Talk to us for your Car Buying Needs in Singapore
Our team of car specialists and dealers at CarQuote is here to help you from step one. Buying a car in Singapore can be hassle-free and easy with our team of car professionals. Talk to us, and let us help you get the car of your dreams at its best value.