How to Buy a Car in Singapore
Buying a car in Singapore? Well it’s easy. Most of the world’s best brands are available here or can be imported. However, be warned ... owning a car in Singapore is expensive. This is because the government of Singapore wants to restrict the number of vehicles running on the road.
[edit] Steps
- Understand the Singapore Car system. Most of you should know that Singapore is a really tiny country with limited space on the roads. To prevent traffic congestion, the Singapore government introduced the Vehicle Quota System (VQS). This system which allows the authorities to control the number of cars out there.
- Bid for a COE. To buy a car, you will need to bid for a COE (Certificate of Entitlement) and also pay road tax. Don't worry - this bidding and other payment details are done by your car dealer.
- Check the newspapers and Internet. The Saturday edition of the Straits Times contains tons of classifieds showcasing almost all kinds of brands in all conditions. One point to note is that you should do your calculations by taking into account depreciation.
- Calculate the total cost. You need to take into account the number of years left in the COE (a COE lasts for 10 years) and the value of the car after the COE expires (this is called the OMV). In general, the depreciation (per year) of a car is given by (Current market price of car - OMV) / No. of years left in the COE).
[edit] Tips
- One of the best places to get a new car will be a place called Leng Kee Road. Most of the branded car show rooms are located there: Honda, Toyota, Saab, BMW, Mercedes. Most car sales people are friendly and will be willing to give you a test drive on any model you want. Be wary of the prices they quote though - some of the prices may seem low but may require you to take up a high interest rate bank loan, for example.










