If you are a citizen of Singapore, you probably know how expensive could be to own and drive a car. No matter Singapore has one of the best public transport systems, it is inevitable to avoid congestion from time to time. Some people don’t mind being late from time to time but for other, this is simply unacceptable. However, if you can’t afford a brand new car then the buying a used car is an option. Although, it is a huge investment and the biggest disadvantage is that it will start to depreciate as soon as you pay the price. However, some people are ready to make that step no matter the cost. That’s why we decide to tell you how to save money buying a used car in Singapore and to let you save a few pennies.
Apply for a loan?
Car loans cover up to 70% of the price of the car or so-called Open Market Value. Unfortunately, car loans don’t cover taxes, COE, The Excise Duty, the GST, etc. As you probably know, COE is a big expense so there is an option to get a loan for COE only. You might find COE renewal loan with an interest rate of less than 4% in CoeCarLoan.com.sg. This way, people might avoid paying the whole amount at once.
Don’t rush buying COE
Patience is always the best strategy when it comes to bidding. If you are bidding through the dealership the best tactic is to tell him to bid with a defined amount. If you are bidding by yourself, then wait patiently. A few months delay might save you hundreds of dollars. You will get the car and the COE and spend less.
Read all available information about the new car
Buying an old car means that you might get some troubles in future with its parts. That’s why make sure you have checked its historical records. You can check VIN number of the car, service documents and ask for an estimation of the car by the third party. Have in mind, that probably you will have to change some parts and will have a maintenance fee for additional services. Have in mind that older cars spend more fuel so your fuel expenses will be higher according to a new car.
Ask the dealer if he is aware of how many people have driven the car. Asked him about incidents and look carefully around if there are some visual signs of traffic accidents. Body panels and colour of the car should be untouched. Otherwise, the car was repaired recently.
Pay attention to your dealer add-on fees
Some dealers don’t mention all add-on fees they charge you, so you have to ask what is in the final receipt. You probably don’t need all of them and this is a good way to save some pennies. Ask your dealer to remove what you not going to use and he will do it for you.
Make sure you get the best car insurance offer. In Singapore always the cheapest offers come from Third Party Only insurance companies, so go through all their products and choose the one, which suits. You can negotiate lower instalments, also. That’s how you might end up with a few hundred dollars less. However, don’t forget to get cover if your car is stolen or damaged. It is not something you can’t live without it but you will feel safer in the future.
Have in mind that buying an older car means that it will depreciate faster. There is a formula, you can use to calculate depreciation per cent of your new car. For example, if your car price is $100,000 then the first year the price will get 20% less – $80,000. Next two years it will get less with 10% and so on. That’s how you can find out if you buy an old car it is a good investment or not. The best age of the car is between 8 and 4 years. If you are checking the kilometres, then they should be not more than 18,000 because it is too used and you might have more repairs than expected.