Cash Mart Singapore

Call Us To Discuss Your Loan Today

6397 4111


As a licensed personal loan moneylender in Singapore, we do not advertise nor solicit any advance fees for pre-approved loans through SMS, over the phone or emails.Incase of any issues, contact us at 6397- 4111 or

The Real Cost of Cars That Your Dealers Will Never Tell

When buying your dream car, you need a dealer’s assistance. However, some of them don’t disclose the real cost of cars. Learn more about it.

When you are younger, you imagine the best car you want to drive. So when you get your first regular job, you go shopping for your dream car. But, you do it thinking that you only have to pay its selling price. So, to save you from shock, we will reveal more costs in a car than what meets the eye.

Also, you’ll learn what the dealers won’t tell you until you have been entirely swooned by an expensive ride. So let’s get down to the real cost of cars. 

Certificate of Entitlement (COE)

COE is a must for every vehicle. It represents and proves your right to own your car and the limited road space for 5 to 10 years. There is no other way around it, despite the cost. So register it in the appropriate vehicle category if you wish to have a car.

As the initial 10-year COE expires, the vehicle owners can renew the COE for another 5 to 10 years. After that, you can either pay the Prevailing Quota Premium or deregister instead.

In addition, COEs are released through three-day competitive bidding. It happens twice every month. Again, you can monitor online through the Open Bidding System.

The Land Transport Authority (LTA) will issue a press release before the bidding exercises. You can check the available quota. Also, look at the time and dates they will happen. Afterwards, submit your bidding through ONE.MONITORING by keying in your reserve price.

one motoring | real cost of cars

How does the bidding work? The COE Open Bid System rises until successful bidders equalled the number of available COEs. After that, the Current COE Price (CCP) will depend on the highest unsuccessful bid plus $1. Moreover, all successful bidders will pay the same CCP. It applies to cars with up to 1,600cc and producing 130bhp of power or less. The COE was at $53,000 as of July 2016.

Auto Insurance

You can choose between basic car insurance, which many thinks can be cheaper. Or apply for comprehensive car insurance that covers several incidences. These are death or injury to other parties, fire, damage to other party’s car, theft and medical costs due to an accident.

Aside from your financial security, many moneylenders prefer giving car loans to those with insurance if accidents or other unforeseen events occur. But then again, you might think this is too expensive. Instead, you could gain 10% to 50% discounts if you accumulated a period without claiming your car insurance. That’s why it is called No-Claim Discount.

If you avail of comprehensive car insurance, you might have to pay $250 a month:

$250 x 120 = $30,000

Total Car Loan Value

You have to consider certain factors when getting a car loan to buy a vehicle. Banks may be your obvious first choice. Yet, consider other options, such as the licensed money lenders. They offer more flexible terms with lower interest rates and less paperwork. So take time to shop around and find the one which fits your needs and wants.

In addition, some loans cover road tax and documentation fees. Some money lenders even approve loans to those with bad credit scores. If banks deny you due to a low credit rating, you can have better luck with licensed moneylenders such as Cash Mart.

We will use Toyota Corolla Altis price as our base data. It is the most popular for Singaporeans based on Annual Vehicle Statistics 2015. The current price for Corolla Altis is $116,888. The down payment is 50%, and you can obtain a five-year car loan at 3% interest. Then, your monthly loan repayment is $1,120.18. At the end of five years, you should have paid $125,655. Diligently paying your loans can increase your credit score.

Road Tax

You can calculate your Road Tax in OneMotoring. Utilise either Vehicle Registration Number or Engine Capacity and Vehicle’s Age. For the Toyota Corolla Altis, the Road tax over a 10-year period is $7,420.

Moreover, Road Tax depends on the engine capacity of the vehicle. So the use of diesel, petrol or electricity to run affects it.

COE Rebate

COE is pricey, and many motorists have been waiting for its price to go down. On the other hand, you can get rebates if you choose to sell your car before it reaches 10 years under your ownership. However, it depends on the years you have used it. Since we are calculating the cost of the car for 10 years, presuming that you will scrap your car after 10 years. Then, the COE has already expired. So, unfortunately, you will not get any rebate.

Preferential Additional Registration Fee (PARF) Rebate

Additional Registration Fee (ARF) is the tax you pay for a car based on its Open Market Value (OMV). The basis of assessment is from the Singapore Customs. OMV includes the freight costs, insurance, and other charges involved during the car’s delivery to Singapore. 

PARF will be based on the de-registration of COE. In addition, it computes the car’s age by the date of its registration. It can be either in its country of origin or in Singapore, whichever is earlier. Imported vehicles registered before September 1, 2007, will not be eligible for the PARF rebate.

If you choose to scrap your car before it hits 10 years, you get back half of your ARF.


  • ARF for Toyota Corolla Altis =$17,400
  • PARF Rebate at end of 10 years = $8,700

Breakdown of Car Cost

  1. Certificate of Entitlement (COE) = $53,000
  2. Auto Insurance = $30,000
  3. Total Car Loan Value = $125,655
  4. Road Tax = $7,420
  5. COE Rebate = $0
  6. Preferential Additional Registration Fee (PARF) = $8,700

Expect to spend $207,375 in ten years for owning a car. It is the real cost of cars your dealer fail to discuss. 

The total excludes petrol cost, parking fees, carwash, and regular maintenance.

Also, you might get traffic violation tickets if you are not careful.

The key to getting a car without too much pain in your pockets is to get the best car loan in Singapore.

Drop by Cash Mart. The staff are willing to show you how their car loan can give you the best benefits. Its flexible terms at its lowest sensible interest rates.

Want some add-ons for your car insurance and other related fees?

Have a chat with Cash Mart’s loan executive today.