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Car ownership in singapore

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Car ownership in singapore

Post by taxico » Wed, 27 May 2009 12:41 am

Get Kah here lah! (Buying a car in Singapore)

Let's take a look at the purchasing price of cars in Singapore.

Let's analyse Europe first. Say you need some wheels and you're looking for a normal family car. You can probably find a new Opel at 22,000 Euro's. Add to that a few hundred Euro's for insurance and road tax, I'd say you could be on the road for about 24,000 Euro's.

Now, let's buy the same car in Singapore. (prices in Singapore Dollars)

Actual value of car: 35,000
Purchase/import Tax: 40,000
Certificate of Entitlement 6 fingers
Insurance 6 toes
Road Tax 1 elbow & 1 knee
ERP Couple of bones
Various other costs Skin tissue
Total An arm & a leg

In short: A car you probably wouldn't even consider in Europe because it's too common will cost you well into 6 figures in Singapore.

Dispite the high prices on cars, the concept of 'traffic jams' is not unknown to Singapore, which is why I am always late at work. Singaporeans work hard and make sure they provide for themselves, which is why the majority of the cars on the road are BMW's, Mercedeses and Jaguars. Basically, for the price of the average car in Singapore, you could probably buy a decent villa in St. Tropez.

So, in other words, unless you're a Senior Vice President of a large multinational or you spent the last millennium-and-a-half saving money, you cannot afford a new car in Singapore.

No harm done: you can always turn to the classifieds in the papers and look for a second-hand car. However, be forewarned: buying a second-hand car in Singapore is slightly more complex than you might think. This is why the National University of Singapore is now offering "Buying a Second Hand Car in Singapore" major course. When I bought my car, I was greatfully helped by Carol, who is a BSc (Hons) BSHCS*.

Let's compare this again.

In Europe, if you want to buy a second-hand car, you turn to the classifieds and look up the car you want to buy. Here's a nice one:

For sale: 1995 BMW 318i, showroom cond. Leather uph. New CD. Sporty s.rims, 82000 km. Asking € 16,350 Neg.

The only thing you need to ask yourself is: do I want to spend 16,350 euros on a 7 year-old BMW 318? If the answer is yes, you call the owner and buy the car, drive home and take the family out for a spin. Simple.

Now, let's look at the same ad in the papers:

For sale: 1995 BMW 318i, showroom cond. Leather uph. New CD. Sporty s.rims, 82000 km. PARF S$24,000, COE 11/05. Nice #. Asking $120,350 Neg. Dep. $8500 + $3250 X 36

Here's what you have to consider:

First, you need to estimate what the actual price of the car is. $120,350 is a negotiable price so you can bring this down to about $115,000 if you have some good negotiation skills (which you can easily practice while shopping at Lucky Plaza). That is, if the $120,350 is the correct price. More likely is the chance that the car turns out to be $130,350 which is explained as "printing error in the paper". Also the Deposit turns out to be $11.500 because "that one ah, also printing error".

Next, you need to consider what the total price will be after subtractrion of the PARF, or whether you can afford to purchase a new 10 year COE. The OMV will then be doubtful and depend on market situations, as will the price of the COE, which is calculated by a bidding system. Next you need to calculate how much the monthly installment will affect your NDI after IRAS and CPF (in case you're a PR, naturally, if you're on EP or LSVP, this doesn't apply). If you decide to go with SDL you will have to make sure they handle the ROV issues at LTA and take care of the formalities at NTUC. Then you need to add the estimated costs of ERP and URA to your monthly figure, and of course the road tax and petrol. You can then subtract the O/T RB (if applicable), add the RL and you have your final price.

Finally, you sign six hundred documents and have the kids wondering why they can't go on a holiday for the next 138 years. But at least you're driving a car.

Oh, by the way, don't forget to convert your driving licence.

* Even though Carol was an outstanding BSHCS consultant, her services are no longer available. She has decided to get her Masters degree at NUS, doing research at the Economics department on the following thesis:

"People in Singapore are deemed adult enough to make decisions on international mergers and acquisitions, international trade, running multinational organizations and boost the South East Asian financial world, yet are not trustworthy enough to decide for themselves when they are sick and thus need to spend 2 hours in a clinic's waiting room while running a 39 degree temperature to get a Medical Certificate to prove that they really can't work today."

- originally by Arne Bevaart, former singapore expat.

Posts: 12
Joined: Sun, 31 May 2009 1:00 pm

Post by mrericlee » Sun, 31 May 2009 1:14 pm

So what car did you drive in Spore?

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