Buying a car in Singapore is fairly straightforward – once you understand how the system works.
Every vehicle in Singapore is given an OMV (Open Market Value) upon importation by Singapore Customs. All vehicles then require a COE (Certificate of Entitlement) which is valid for 10 years and is available through an open bidding system, where the value is linked to the vehicle’s engine size and various market influences. Both the OMV and COE are affected by depreciation and initial costs vary – depending on the date the car was first registered, its make and model.
New vs. Used
Misunderstandings as to how COE and OMV components work in relation to new and used vehicles are common. To avoid making the wrong purchasing decision, Expat Motor Singapore www.expatmotorsingapore.com, Tel: 6732 6248) is one company with the knowledge and resources to help you get the best deal.
Whether to buy new or used depends on your length of stay in Singapore. Expat Motor Singapore advises if you’re staying here for 18 months to three years a used vehicle is best. If you’re planning on living in Singapore for three to five years, a new vehicle is the way to go – but remember depreciation will hit hardest if you depart within 24 months. The decision to buy new or used also depends on the make, model and price of the vehicle you intend to purchase, plus your individual circumstances.
Dealer vs. Private sale
Most cars in Singapore are sold through dealers. Even those advertised as a “private sale” are often offered through a dealer or broker on behalf of a client. Whether you’re buying, selling or looking to lease a car, Expat Motor Singapore first determines your needs on which to base its recommendations and then searches its preferred dealer networks to locate a quality vehicle at the best available price, to suit your needs. Upon locating a suitable vehicle, they’ll bring it to you for an inspection and test drive, arrange all finance and insurance and also provide after-sales customer service for breakdowns, general servicing and maintenance. They can also assist with selling the vehicle or trading it in for an upgrade.
How to sell
A broker will take your vehicle’s make, model and age into account to decide whether it’s likely to be resold in Singapore, or should be exported. Expat Motor Singapore offers both a sales and export service and will advise the best option – depending on the vehicle and your circumstances. Vehicles dispatched through them are usually cleared within just one to two days.
A car dealer may offer a price under the current market price – in order for him to make a margin upon resale. If the vehicle is considered viable for export – usually after five years – he’ll offer you a rebate on your OMV and COE, plus the estimated body value of the vehicle. The amount of OMV after depreciation is known as PARF, while a COE depreciates daily and is zero after 10 years. So a vehicle registered after March 2004 would be valued at its remaining COE, plus PARF (82.5 percent of OMV) and the estimated body value, less the dealer’s discount (approximately three percent).
Anyone can export a vehicle out of Singapore. But the main consideration for many expats should be, "Which country am I going to next and can I take my vehicle?" and 'Is it really worth the hassle?". There are costs – with time and money – associated with exporting, so it’s important to gain a clear understanding of the intended country’s import regulations and any duties, taxes, tariffs, tests and insurance. If you do decide to export, you’ll receive a rebate on your COE, plus the PARF value (OMV less depreciation), less dealer charges of around three percent.
Buyer beware
Beware of “bargains” with water or accident damage or dealers who make their profits through finance plans with extended terms or high interest rates. Unlike many other dealers, Expat Motor Singapore cannot limit your choices to what’s in their showroom – as they don’t have one. Instead, they evaluate your personal circumstances and advise whether buying or leasing will make sense for you, before searching the market for the best car for your needs. Hitting the open road may be more affordable than you’d think!
Fast rides
Paying upwards of $300,000 for a Porsche, Ferrari or Aston Martin isn’t for everyone, but with a decent deposit and a lengthy loan term offering reasonable repayments and low interest rates, it’s not out of reach. Luxury vehicles are a hot commodity – even in Singapore – provided you get the right vehicle, with the right specs, at the right price. Boys who love toys will go to battle over the car of their dreams, so do your research before you whip out the chequebook.
Useful Contacts
Expat Motor Singapore Tel: 6732 6248, Web: www.expatmotorsingapore.com.
· AutoIncSports – specialises in sports cars. Tel: 6338 0123/9878 2277 (Ben), Web: www.autoincsports.com.
· AutoBahn Motors – sports and classic cars. Tel: 8100 1010 (Gary), Web: www.autobahn.com.sg.
· Used cars: www.sgcarmart.com and www.singaporecarsonline.com.
Do you have a Singapore Secret you’d like to share? Send details (700 words) plus images to mjones-white@acpmagazines.com.sg and you could be published in an upcoming issue of The Finder!
Posted on June 07
