Buying a Car in Singapore......

There are some interesting differences between Australian cars and Singaporean cars, let's take a closer look at these.

In terms of the compulsary accessories, the rules and regulations vary from country to country in the western world, but generally, the following items are deemed compulsory or at least highly recommended in every car:

                            First Aid Kit                                          Tool Kit





                            Battery Cables                             Fire extinguisher

 

Now, let's take a look at Singaporean car accessories:

 

At least 10 different kinds of Teddy Bears

 

At least 18 different pink Hello Kitty products (Doraemon also can)

Moreover, Singaporean cars are a little different from normal cars. Firstly, Singaporean cars are all automatic. Steering a car is difficult enough so having to deal with gears and a clutch is more than the average Singaporean can handle.

Then let's take a look at the purchasing price of cars in Singapore.

 

Let's analyse Australia first. Say you need some wheels and you're looking for a normal family car. You can probably find a new Honda Accord at A$34,000. Add to that a few hundred A$ for insurance and road tax, I'd say you could be on the road for about A$35,000.

 

Now, let's buy the same car in Singapore. (prices in Singapore Dollars)

Actual value of car:	32,000
Purchase/import Tax:	40,000
Certificate of Entitlement	6 fingers
Insurance	6 toes
Road Tax	1 elbow & 1 knee
ERP	Couple of bones
Various other costs	Skin tissue
Total	An arm & a leg

In short: A car you probably wouldn't even consider in Australia because it's too common will cost you well into 6 figures in Singapore.

 

Let's compare this again.

 

In Australia, if you want to buy a second-hand car, you turn to the classifieds and look up the car you want to buy. Here's a nice one:

 

For sale: 2005 BMW 320i, showroom cond. Leather uph. New CD. Sporty rims, 82000 km. Asking A$34,000 Neg.

 

The only thing you need to ask yourself is: do I want to spend 34,000 on a 4 year-old BMW 318? If the answer is yes, you call the owner and buy the car, drive home and take the family out for a spin. Simple.

 

Now, let's look at the same ad in the Straits Times:

 

For sale: 2005 BMW 320i, showroom cond. Leather uph. New CD. Sporty rims, 82000 km. PARF S$22,000, OMV S$40,000, COE 11/2015 S$16,000. Nice #. Asking $89,000 Neg. Dep. $8600 + $3250 X 36

 

Here's what you have to consider:

 

Despite the huge depreciation rate compare to Australia market, you actually gotta think about scraping the car instead of selling it in future.

 

Next, you need to consider what the total price will be after subtractrion of the PARF, or whether you can afford to purchase a new 10 year COE. The OMV will then be doubtful and depend on market situations, as will the price of the COE, which is calculated by a bidding system. Next you need to calculate how much the monthly installment will affect your NDI after IRAS and CPF (in case you're a PR, naturally, if you're on EP or LSVP, this doesn't apply). If you decide to go with SDL you will have to make sure they handle the ROV issues at LTA and take care of the formalities at NTUC. Then you need to add the estimated costs of ERP and URA to your monthly figure, and of course the road tax and petrol. You can then subtract the O/T RB (if applicable), add the RL and you have your final price.

 

Sounds complicated Huh??

Finally, you sign 200 documents and have your girlfriend wondering why she can't go on a holiday for the next 38 years. But at least you're driving a car.........