5 Things you need to know before getting a car in Singapore

Perhaps you are searching for a sleek coupe, a family sedan or even a sports car! It is extremely important for you to find a car that is compatible with your current lifestyle. This could have an impact on your professional and personal plans.

For instance, if you are sharing your vehicle with your family members, you might want to get a sedan or an SUV that has enough carrying capacity for all members in your household, rather than a compact hatchback with limited room for passengers in the backseat.

You must also determine which car will suit your future plans as well. Perhaps you want to start a family in a few years, then you might want to purchase a car that will accommodate toddlers. On the other hand, if you plan to have a career that will require frequent travels, then you might want to purchase a car that is designed for long-distance journeys.

Now that the fun and exciting part is completed, it is time to get to the nitty-gritty bits of buying a car in Singapore. You have to map out your expenses and purchase a car that you can afford without drowning in debt. Before you commit to a car loan, you should understand the true cost of a car.

A true cost of a car is inclusive of other car-related expenses. In Singapore, here are the common factors to consider before you purchase a car:

- Cost of Certificate of Enrolment (if applicable)

- Cost of annual road tax

- Cost of ERP fee/toll on a monthly basis

- Cost of annual car insurance

- Cost of annual car maintenance

- Cost of gas on a monthly basis

- Cost of parking on a monthly basis

Now we have arrived at the recurring conundrum: are you going to purchase a brand new car or a used one?

You might wish to claim an untouched car for the "new car experience", as being a proud owner of an unaltered automobile can be very appealing. However, you should also weigh the pros and cons of both options before making a permanent decision.

Putting the psychological pleasure that comes with owning a brand new car aside, you will also be reassured that there are no hidden issues with a new car, which is a valid concern if you opt to buy a second-hand car instead.

When it comes to owning a used car, it will come with less guarantee that there are no hidden wears and tears. However, it is usually much more affordable and it comes with a wider range of selection.

For example, if you have a spending plan of S$80,000, this means that when you browse through a list of new cars, you will only be limited to certain cars such as Perodua Myvi (S$72,999 at the time of publication) or Nissan Note (S$77,000 at the time of publication).

By selecting a used car, you will be able to get more premium cars for a lower price and you can modify it without affecting the warranty of your car. However, buying a used car means you will have to go through the hassle of sourcing your own workshop whereas a new car comes with an authorised workshop coupled with extra service packages.

Once you have established which car fits your budget, it is time to reward yourself for all that hard work. Take your dream car for a test drive! This is the optimal way to measure and judge the car’s worthiness in terms of price, performance and overall experience.

When taking a test drive, we strongly suggest the following:

- Bring an experienced driver with you, as they can provide constructive feedback and insight.

- Test the car on tight corners, bumpy roads and difficult parking spots to determine the performance of the car.

- Do not feel rushed with this process, take your time to observe and ask as many questions as you can.

Buying a car in Singapore can be costly, and most first-time owners cannot afford a vehicle without applying for a car loan. Here are three ways to do it:

- Direct to bank

- Bank loan through a car dealer’s service

- Get financial aid through a car dealer’s in-house package

It is important to note that interest rates and payment terms can change over time by each provider. We strongly suggest dedicating a large portion of your time comparing all your options before you put your money down.