Purchasing a new car in Singapore is a significant investment, and it's essential to understand the costs involved before making a decision. One of the primary expenses is the Certificate of Entitlement (COE), which allows the vehicle to be driven for 10 years. COE prices fluctuate based on demand, and they can greatly impact the overall cost of your car.
In addition to the COE, car ownership costs in Singapore include road tax, maintenance, and fuel expenses. Car insurance is another mandatory expense. There are various types of car insurance policies available, from basic third-party coverage to more comprehensive options that include protection against theft, accidents, and damages. It's crucial to compare insurance packages to find one that suits your needs and budget.
The acquisition process for a new car in Singapore involves not only securing the COE but also paying for import duties, registration fees, Certificate of Entitlement and the Additional Registration Fee (ARF), which is based on a percentage of the car’s Open Market Value (OMV).
Given the high costs, it’s important to carefully evaluate your budget and financing options. Many banks and financial institutions offer car loans to help spread out payments over time. By understanding these factors, you’ll be better equipped to make an informed decision when buying a new car in Singapore, ensuring that your purchase is both financially sustainable and aligned with your needs.