The convenience of having a car is unquestionable, especially if you have kids or are always on the go. However, getting a brand new car in Singapore can be extremely expensive, with the Certificate of Entitlement (COE) in the open category set at S$137,000 in the September 2023 exercise.

The only recourse left then, is to explore the idea of buying a used car in Singapore. You can save a hefty sum by doing so, primarily because you can avoid high rates of depreciation – most of this occurs in the first few years of a car’s lifespan.

In addition, used cars in Singapore are usually relatively new and well-maintained due to the 10-year COE validity period. Most secondhand cars have only been used for a few years before being put up for sale, but they come at a much cheaper price tag than brand new cars.

If you have a limited budget, buying used cars may be worth a shot. Ready to take the plunge? Follow these 5 tips when buying a used car in Singapore.

1. Shop around  

As with all big-ticket purchases, do shop around for the best deals. Besides getting one from a dealer, you can also purchase a used car in Singapore directly from the seller on platforms such as Carousell, SGCarMart and Carro, which helps you save on middlemen fees.

When you are shopping for a secondhand car, make sure you check whether it’s a COE or Preferential Additional Registration Fee (PARF) car. PARF cars are generally below 10 years of age and still using their original COEs, which entitles you to a PARF rebate – and COE rebate – when you de-register the car within 10 years.

COE cars are older cars whose COE have been renewed after the first 10 years, and only the COE rebate will be available upon de-registration. They are generally cheaper than PARF cars, but may come with higher road tax and maintenance costs. Make sure you calculate the total costs involved before making a decision.

2. Do a deep dive into the car’s history 

What you can’t see matters as much, if not more, than what you can see, especially when buying used cars. To protect your wallet as well as safety on the roads, make sure you check the car’s service and maintenance records, accident history and major repairs so you know what you are going into.

It’s also worth checking on the common issues with that particular car make and model and whether they have been fixed. Other red flags include cars with a long list of previous owners and a poor maintenance history. Being aware of these can help you save on future maintenance costs.

3. Try before you buy 

Things such as a car’s engine, brakes and steering can only be tested on the road. Before you buy a secondhand car, request for a test drive so you can suss out any underlying issues. Be wary if the seller or dealer refuses to let you do so, as it may mean that there is something to hide.

Take your time to examine the car and do so in a well-lit place. Is the car lopsided, or is the paintwork smooth? Bring a torchlight and some paper towels to check on potential leaks and corrosions. Open the bonnet and check on the car interior and electronics too.

Besides inspecting the vehicle yourself, you can also ask the dealer for a comprehensive car evaluation report, where the car is evaluated according to the SAFE checklist by CASE. 

4. Understand the costs involved

What is the total price you have to pay for your secondhand car? The cost of owning a car goes beyond just the cost of the car itself. It also includes road tax, car insurance, petrol fuel, parking and maintenance.

Depending on the condition and age of the secondhand car, you may have to prepare to pay for additional repairs and maintenance in the future. Used cars in Singapore that are more than 10 years old are also subject to a road tax surcharge of 10-50%. Instead of basing your decision on just the cost of the car, consider all these additional expenses to ensure that you are buying something you can afford.

5. Don't skimp on the insurance

Car insurance may be compulsory for all cars in Singapore, but that doesn’t mean you should just opt for the cheapest plan. For secondhand car owners, getting a comprehensive car insurance plan may be worthwhile.

Besides providing personal accident and medical coverage for you and your passengers, most comprehensive plans allow you to get repairs done at your preferred workshop. Being able to visit your workshop of choice can be especially beneficial if you own an older car and parts are available only at specific workshops.

With the additional coverage it provides, comprehensive car insurance plans tend to cost more. But that’s not to say it isn’t affordable. With Singtel Car Protect – a value-for-money car insurance plan – you can enjoy extensive coverage without breaking the bank.

Disclaimers: 

T&Cs apply. Underwritten by Great Eastern General Insurance Limited. Protected up to specified limits by SDIC.