1. Seriously Consider Public Transport
Singapore is relatively small country, with a large population – and buying a car might not be completely necessary. Singapore has an excellent, high quality public transport service, that many Singaporeans use instead. Just think – there’s 5.3 million people in Singapore to clog up the roads – rush hour is going to be madness in a car.
2. Cost of Buying Car in Singapore
That aside, Singapore is also a very expensive country to buy a vehicle in. The prices of cars are so high, because the government and traffic authorties factor the following into the price, to encourage people to use public transport instead.
- Administrative fees
- Value of the vehicle, taking into consideration all costs associated with manufacture and exporting.
- A tax from Singapore Customs, 20% of value, known as Exercise Duty
- Goods & Services Tax – 7% GST on Exercise Duty and OMV.
- Additional Registration Fee (ARF)
- Certificate of Entitlement (COE) – Only a certain number of these are distributed each month, and you will have to out bid other motorists, to attain one. You can find out more about COE’s here.
There are also ongoing costs on a vehicle, that you will have to pay. These include:
- Road Taxes
- Car Insurance
- Electronic Road Pricing
3. Purchasing in Singapore
If you do decide to buy a car, there a some vital do’s and don’t’s you must take into consideration when purchasing the car in Singapore.
- Don’t be steered by the salesperson – they are trying to make you spend money. Always double check the facts they are presenting you with, because they might not actually be the facts.
- Don’t let the salesman know you are a bit naive about cars. They will use this information against you and sell you lies.
- A good way to ensure you don’t get conned by the salesman, is to do some research. Know what you need before you go in to buy a car. Explore how much running the car will cost you and any other variables, so that if the salesman tries to steer you – you can challenge their lies with the facts you know.
- The salesman will also try to sell you “upgrades” for your new car. Buying a car in Singapore is expensive enough with adding upgrades to your new ride, that you do not need and will not use.
- Perhaps the most important tip, is not to buy a vehicle at the first dealership you go to. Shop around a little bit, and get a feel for what kind of offers you can get. You can always go back to the first dealership if you decide they had the best deal. Scoping out the market is essential when buying a car in Singapore.