How To Buy A Car In Singapore With sgCarMart

Are you wondering how to buy a car in Singapore with sgCarMart? This article is the answer to your question.

For many, buying a car in Singapore is an aspiration. It symbolises that you are financially responsible and can handle such a costly feat.

While using carpool apps and public transport is convenient in Singapore, having a car gives many a desirable status symbol and smooth travel.

However, the Singaporean government has put into place a variety of taxes and fees to control the car population in the city-state and encourage the utilisation of public transport.

In addition, Singapore Land Transport Authority administers various regulations concerning buying and driving a car. As a result, it sets Singapore’s car industry apart from other countries.

If you think you are ready to buy a car, you must first know what type of car you want. It is beyond the brand or model. You also have to consider purchasing a new car or a used car from a trusted car site such as sgCarMart.com.

Why use sgCarMart?

The sgCarMart is not an ordinary car site. It is a wholly-owned subsidiary of Singapore Press Holdings and has the most expansive database of new and used cars for sale in Singapore. In addition, this multi-awarded site boasts 2.6 active visitors a month.

That is why sgCarMart is worth visiting if you want to purchase your car. In addition, it contains essential information and the latest guidelines for car purchasing.

sgCarMart New Car

To maintain its accuracy, the New Cars Section comprises listed prices that are updated twice every month and the latest information on all new car models in the market.

A car buyer can enjoy the detailed description of each car model and provide a convenient way to compare cars both by model and price.

Also, it will give you an overview of how much you have to save to get your car, especially since the provided price list is from Singapore’s authorised distributors and parallel importers.

Furthermore, the site has its own search engine for you to narrow down your search and find your ideal car in a breeze. You can set your minimum price, maximum budget, depreciation each year, vehicle type and category (authorised dealer, parallel importer, Cat A COE, and Cat B COE).

sgCarMart Used Car

The sgCarMart Used Car Section possess the largest and most comprehensive database of used cars in Singapore, complete with photos and pricing. Daily updates are available to keep the current listings accurate.

You can set the search based on:

1. Make
2. Model
3. Price range
4. Depreciation
5. Registration date
6. Engine capacity
7. Mileage
8. Vehicle Type

Since the database is always up-to-date, you will see if the vehicle is still available or already sold. Aside from this, you will also see if the seller is the direct owner or an agent (consignment).

How much does it cost to own a car in Singapore?

Various factors contribute to the cost of cars in Singapore. As a buyer, you need to understand how car pricing works. Also, know why most people consider it costly to buy vehicles in Singapore.

Car Registration Fees

You need to pay a Registration Fee of S$220. It is the basic fee paid upon registration of the vehicle.

Open Market Value (OMV)

The OMV is the cost of a vehicle imported into Singapore. Its basis on the assessment of the Singapore Customs.

In getting the OMV, the customs consider several criteria. These are the actual purchase price, freight, insurance and other sale and delivery charges incurred when importing the car to the city-state.

Additional Registration Fee

The Additional Registration Fee (ARF) is a tax collected upon registering a vehicle. The amount of this fee (the ARF rate) is on a percentage of the vehicle’s Open Market Value (OMV).

• 100% ARF charges the first $20,000 of the OVM.
• 140% ARF charges on the next $30,000
• 180% charges on OMV above $50,000.

Road Tax

Road Tax is part of the vehicle ownership tax that you have to pay to own a car. This fee is an ongoing cost that you have to renew every 6 or 12 months.

Ask the seller about the road tax settlement if you buy a used car. As for the seller, they will transfer any remaining road tax on the vehicle to the buyer.

Your road tax will depend on whether your car is electric or not.

The car’s engine capacity will be the road tax for Petrol, Petrol-Compressed Natural Gas (CNG), CNG, or Diesel Cars.

Also, it will determine the road tax for Petro-Electric or Electric Cars based on the power rating of the car.

You must renew your road tax through online payment, AXS services, GIRO, or any Authorised Road Tax Collection Centre before it expires. Late payment will incur fines and risk getting charged in court for using an unregistered vehicle.

If you are not sure of your road tax expiry date or how much fee to pay, you can use the road tax calculator provided on the OneMotoring site.

In addition, here is a guide to help you prepare for your renewal of registration.

When you buy a new car from sgCarMart, they can include the road tax in the total cost of the car. If you buy a used car, the vehicle cost may exclude the road tax. Do not forget to ask the seller about it.

Excise Duty

Singapore Customs also collects excise duty. Another form of tax is 20% of your car’s OMV.

Certificate of Entitlement (COE)

A Certificate of Entitlement (COE) gives you the right to own a vehicle and drive it in Singapore. However, unlike in other countries which have a fixed amount of certificate or ownership based on the vehicle’s cost/model, COE requires buyers to make bidding.

To register your car, you must first bid for a COE during the open bidding exercises conducted twice a month. However, before the bidding starts, LTA will announce the vehicle quota of COEs available for each category.

There are five categories: Cat A (cars up to 1,600cc and no more than 130bhp), B (larger cars above 1600cc or 130bhp), Cat C (Goods vehicles and buses), Cat D (Motorcycles), and Cat E (Open).

The sgCarMart site helps car buyers by posting the most recent COE results:

• Quota (the number of issued COE)
• Quota premium (the price of the successful COE bid)
• Bids received (the number of people bidding)
• Prevailing Quota Premium (the fee to be paid for COE renewal)
• Change (Difference between the current and previous price of COE)

Vehicular Emissions Scheme (VES)

VES is for cars registered from 1 January 2018 to 31 December 2019. VES has totally replaced the carbon Emissions-based Vehicle Scheme (CEVS).

The new VES aims to reduce carbon emissions, hydrocarbons, carbon monoxide, nitrogen oxides, and particulate matter that damages the environment.

If you want to compare the fuel cost savings between various vehicles models, you can use the OneMotoring Fuel Cost Calculator. Then, you have to simply type in the make, model, body type, engine type, Maximum Power Output, and other detail to know the CO2 emission of the cars and their Fuel Economy Data.

How will this affect the cost of buying a car?

There are a lot of made changes made from CEVS to VES. Buyers of Toyota Prius Hybrid will need an additional $30,000 to purchase since there will be no longer a rebate. Those interested in buying the Toyota Harrier will require an extra $10,000.

Let’s say you want to buy a new Toyota C-HR 1.2 Turbo in July 2018.

The total cost you have to pay is:

• Car Registration Fee: $220
• OMV: $25,713 (as indicated in One Motoring)
• Excise Duty (20%of OMV): $ 5,142.6
• COE: $38,941
• VES: $10,000
• ARF: $25,713

Basic Cost of Car: $104,650

Toyota C-HR 1.2 Turbo’s recent purchase price is $126,988 (May 2018).

Difference: $22,338 (road tax, sales commission, dealer profits, other fees)

Used Car Surcharge

The surcharge is the tax you have to pay when buying a used car in Singapore from an import. The used car must not be older than 3 years old at registration.

With sgCarMart, these fees are broken down to know how much you pay for the car and your taxes.

How much is a car down payment in Singapore?

In 2016, the Monetary Authority of Singapore (MAS) eased the car loan guides in Singapore three years after tightening them.

The cars with an OMV of $20,000 or less, you can request a car loan up to 70% (previously 60%) of the purchase price. Cars with OMV of more than $20,000 can have a car loan up to 60% (previously 50%) of the purchase price.

Also, it extended up the loan tenure to seven years. It is different from the previous cap of five years.

With all these changes, it simply means that the minimum down payment will be dependent Applicable OMV of the car.

The example above indicates that Toyota C-HR 1.2 Turbo’s OMV is $25,713. It means you can get a loan of as much as 60% of the purchase price. It is $76,192.8, as shown in sgCarMart’s instalment calculator.

How to Buy a Car in Singapore

After choosing the type of car and defining the range of costs you have to pay, you must know how the COE bidding in Singapore works.

RELATED: Where to find the best new car loan in Singapore

What is COE in Singapore?

As mentioned above, your COE or Certificate of Entitlement gives you the right to own and use a vehicle. To obtain your COE, you must first know the bidding period.

The Bidding period usually begins at noon on the 1st and 3rd Mondays of every month. It ends at 4 pm the following Wednesday. The Land Transport Authority (LTA) will announce the period, when it will start and when it will end.

After knowing the bidding period, you must determine which category you have to bid. Then, you will need to use your bank account in either DBS, POSB or OCBC. It contains enough money for the fixed bid deposit based on your category.

You can then place your bid and revise as much as possible since the bids will likely go higher than the minimum quota. Once you get a COE, you have to renew it in 10 years to keep your car.

Shop Around for a New Car or Second Hand Car

Once you have decided which car you want to buy or can afford, you can search in sgCarMart for a seller.

You can select a car and compare it with other vehicles. Then, you can add it to a shortlist to keep track of it. You can also read reviews from the site’s editor and the previous users.

Once you have finally found the best car for you, ask the seller how much you have to pay and the inclusive and exclusive fees.

Sign the Sales Contract

Signing the sales contract means that you have agreed to the indicated terms and conditions. Therefore, it is essential to check the accuracy of the information on the sales contract before attaching your signature to ensure that the car dealer/seller has no hidden charges.

The essential items that must include in the contract are:

• Description of Model (model, engine capacity and year of manufacture)
• Colour
• All of the accessories and options included in the purchase
• Itemized fees and other included charges
• Deposit amount
• Payment terms
• Delivery period
• Warranty and any included services package

Never sign an incomplete contract or any document that you do not understand. It is vital what is inclusive of the deal and which is not.

Valuable Sites for Car Buyers

One Motoring

One Motoring is a comprehensive portal for all vehicle owners in Singapore. From buying and selling cars to real-time traffic conditions, One Motoring is a handy site for Singaporeans.

From this site, you also access helpful information and online applications for car ownership such as COE bidding, road tax renewal and enquiries on COE rebates.

One Motoring was from LTA  but managed by NCS Portal City.

sgCarMart

sgCarMart has essential information for car owners and buyers. It fits Singaporeans with various motoring needs. It has four sections: New Cars, Used Cars, Articles and Motor Directory.

The articles provide value-added services to help car owners and buyers make intelligent decisions on whether they want to buy a car or keep the vehicle in good shape. On the other hand, Motor Directory full contact details of merchants offering different products and services.

Conclusion

Buying a car in Singapore is not a simple financial commitment, especially when you can buy just one car for the price of almost two cars in another country.

Before purchasing a car, you must commit to proper financial planning to fully enjoy the convenience of owning a car – the independence of travelling on your own time.

Make sure that all of your documents are in order and use online forms and payment systems to help move the process along faster.

Make your car purchase possible with Cash Mart Singapore. It is a licensed moneylender in the country that financially assists eligible borrowers. So get yourself assessed and take out a loan from them before buying your dream car.