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Your 2022 Essential Guide: The Best Way To Buy A Car In Singapore

Your 2022 Essential Guide: The Best Way To Buy A Car In Singapore – that will be the topic of today’s article.

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Introduction

Car in Singapore—Singapore is a small city with a well-developed and reliable public transportation system. As a result, most locals do not consider owning a car to be a necessity. Car ownership is a costly luxury that only a select few can afford.

Nonetheless, for some people, the ease of driving a car exceeds the high cost. Traveling from western Singapore to Changi Airport in the east, for example, takes at least an hour and a half on the MRT, but only half that time in a car.

This article will go over the several ways to own a car, the registration process, and the crucial things to remember when driving in Singapore.

Should I Transport Or Import My Own Car in Singapore, Or Simply Purchase A New One

The cost of importing an automobile into Singapore is considerable. It may, however, be your greatest option depending on what you’re looking for.

To begin, only right-hand drive cars less than three years old are permitted in Singapore. The vehicle must also meet safety and environmental criteria, as well as include a speedometer that displays kilometres per hour.

When everything is in order, the importer can hire an agent to send the vehicle over and assist with the application for an Inward Cargo Clearance Permit. The car’s Open Market Value (OMV), Excise Duty, and Goods and Service Tax will be calculated by Singapore Customs (GST).

When the car arrives in Singapore, it will be subjected to an emissions and fuel economy test to determine the carbon emissions, which will result in either a surcharge or a rebate. This is removed or added to the Additional Registration Fee (ARF).

In addition, the importer must bid for a Certificate of Entitlement (COE), which allows the vehicle to be registered. A registration notification letter is provided after all outstanding fees, including the ARF, insurance, road tax, and any applicable surcharges, have been paid, and the car is now licenced for usage.

How Do I Go About Purchasing A Car In Singapore

Due to rigorous car ownership regulations, buying a car via a dealer is the most convenient option. For new automobiles, you’ll need to purchase both the vehicle and a Certificate of Entitlement (COE), which is a permit to register a vehicle.

If a car loan is required, the dealer may also refer you to a banker who will analyse your circumstances. The buyer and dealer complete the transaction and register the car in the buyer’s name after the COE and loan amount are approved.

How Much Does It Cost To Own A Car In Singapore

The cost of a conventional sedan ranges from S$80,000 to S$150,000, including COE. The amount of road tax you pay depends on the engine capacity, but you can anticipate to pay roughly S$2,000 each year. Insurance premiums are also around S$1,300 on average.

Cars are exempt from inspection for the first two years, then must be inspected every two years from the third to the tenth year. Each inspection costs S$62.06, with S$31.03 for subsequent re-inspections.

The price of petrol ranges from S$2 to S$2.50. In the CBD, parking costs start at S$0.60 for 30 minutes and can go up to S$5. Along popular routes in Singapore, electronic road pricing (ERP) is used, with charges ranging from S$0.50 to S$3 depending on the area and time of day. An average daily drive to work in a downtown office may cost roughly S$15 to S$25 per day, including parking and petrol charges.

I’m Looking For A Car, But I’m Not Sure Where To Look

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Your 2022 Essential Guide: The Best Way To Buy A Car In Singapore 3

Authorized dealers or parallel importers, many of which are located along Leng Kee Road and in the Ubi Industrial Estate, can test drive and purchase new cars. Authorized dealers are more trustworthy, although parallel imports can give lower pricing.

Many car owners are increasingly using online marketplaces such as SGCarMart, OneShift, and Carro to trade their vehicles. Some even provide services like vehicle inspections and financial planning if you’re in need.

What Is The Best Way For Me To Pay For The Car

The COE, taxes, insurance, and down-payment are all considerable sums of money that must be paid upfront when purchasing an automobile. Transferring these funds from an international bank account to a Singapore bank account will result in high bank fees and bad exchange rates. A reputable firm like Wise, which has been recognised by Singapore’s Monetary Authority, can transfer up to £1 million in most currencies and provide the genuine exchange rate, which you can find on Google.

You can use a bank transfer technique known as GIRO to pay once your money is in a local bank account. Your credit or debit card can also be used for smaller sums such as insurance payments, monthly loan instalments, and road tax.

How Can I Get A Car Registered In Singapore

A COE is required to register a new vehicle. Introduced to regulate the car population, only a restricted number of vehicles are available for purchase through a bi-monthly bidding process.

In most circumstances, the auto dealer will bid on behalf of the buyer for the COE. A bid can be be placed immediately through a DBS Bank ATM or through the COE bidding website. It’s worth noting that a deposit of S$10,000 is required.

If you’re purchasing a used automobile, the COE, road tax, and insurance may already be included in the price. Otherwise, you’ll have to pay for the unpaid road tax and auto insurance separately.

The dealer can submit the final documentation for registration online or in person at the LTA Customer Service Centre if preferred. In this scenario, a S$25 administrative fee would be charged.

What Do I Need To Know About Driving In Singapore

All Singapore-registered vehicles must have an In-Vehicle Unit (IU) that reads the NETS stored value card and is used to pay tolls and levies at ERP and carpark gantries.

As required by law, newly licenced drivers must display a probation plate on the front and back windshields of their vehicles.

What Types Of Driver’s Licences Are Accepted In Singapore

Valid international driving licences with an International Driving Permit are acceptable for short-term stays (IDP). An official translation of the foreign licence into English is required in the absence of an IDP. However, drivers from ASEAN member countries do not require an IDP in order to drive in Singapore.

If you plan to stay in Singapore for more than a year from the date of your previous arrival, you’ll need to convert your international driver’s licence to a Singapore driver’s licence.

In Singapore, buying a car is a major investment, but with appropriate financial planning, you’ll appreciate the convenience it provides. Seek expert assistance whenever feasible, make sure all of your paperwork is in order, and use online forms and payment methods to expedite the process. In no time, you’ll be on the road!

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Adam is an internationally recognised author on financial matters, with over 760.2 million answer views on Quora.com, a widely sold book on Amazon, and a contributor on Forbes.

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