The latest COE results (2nd bidding, March 2024) would have been a bummer for anyone considering buying a new car. Across the board, COE prices increased, with Cat A’s at $85,489, Cat B’s at $96,001, and Cat E’s at $95,856.
Clearly, there are many Singapore car buyers who are able (and willing) to cough up the cash for a brand-new car.
For the rest of us who are not as affluent but still need to own a car for personal reasons, the used car market is likely as good as it gets. Here, we might be able to find a car that is cheaper and has lower depreciation.
The best deal (from a cost perspective) is likely to be buying a COE car. COE cars refer to cars that have renewed their COE, which means that the car is at least 10 years old.
Unfortunately, the used car market is fraught. For a start, COE cars are 10 years and older and are likely out of warranty. Being older, they may also experience more issues, which means potentially higher maintenance and repair costs.
To avoid a lemon (a lemon is a car that has hidden issues that were not disclosed at the time of sale, and these issues can be expensive and difficult to repair), buyers may want to get a professional inspection and check the vehicle’s history report and to buy from reputable dealerships or individuals that they trust.
However, if you get a suitable COE car that does not have major issues, you can enjoy substantial cost savings. This would allow you to enjoy car ownership without paying the current high price for a brand-new car in Singapore.
In this article, we explore the current cost of a COE car in Singapore. To help us with this, we look at some listings on Sgcarmart.
All of these COE cars that we have selected have a depreciation of $10,000 or less, and their COE has been extended for another 10 years. We only choose cars that have 1 previous owner. The downpayment is assumed to be at 30%, and the car loan is assumed to be 60 months with an interest rate of 3.18%.
Audi A3 1.4A – $99,888 (COE till 2034)
Current Mileage: 114,000km
All images from Sgcarmart. Link to listing
The Audi A3 would be a good entry-level car to consider if you want a continental car.
While a brand-new Audi A3 will cost $220,000, a used Audi A3 with a new 10-year COE can be purchased at less than half the price at slightly below $100,000.
This listing caught our attention for two reasons. Firstly, the mileage, currently at 114,000km (11.5k/year), is relatively low. Secondly, road tax is relatively affordable at $624 a year, though this would increase once the COE is renewed.
To own this car, you will need to pay a minimum downpayment of $29,996 (30% of the asking price of $99,888). Assuming an interest rate of 2.75%, taken over a 60-month loan, the monthly repayment will be $1,327.
2009 Nissan Teana 2.5A – $46,800 (COE till 2029)
Current Mileage: 115,000km
If you want a bigger and more powerful ride, the Nissan Teana may fit the bill.
This 2009 model with just one owner has a mileage of 115,000 km and would cost you $46,800. Financing-wise, the downpayment would be $14,040, and assuming a loan period of 48 months (the car has a remaining COE of 57 months as of today), monthly repayment would be $758.
This would fit within the budget of those unwilling to spend more than $1,000 a month on loan repayment but still would want a car with a remaining COE of about 4 to 5 years.
Honda Fit Shuttle 1.5A – $99,800 (COE till 2034)
Current Mileage: 120,000km
With a reasonable mileage of 120,000km (12.2k/year), just one owner, and a remaining COE of 10 years, this 2014 Honda Fit Shuttle would require a down payment of $29,940. If you were to stretch the car loan to account for 84 months, the monthly repayment would be $992. This would likely be cheaper than renting a car, with the bonus that you don’t need to worry about scratches or damage. It offers good boot space, fuel efficiency.
While COE Cars Are More Affordable, They Are Not Exactly Cheap Either
One thing worth noting is that although COE cars are cheaper than brand-new cars, or even pre-owned ones that are still on their original COE, they are not cheap either.
When you include season parking ($110 at HDB carparks), fuel cost (about $250 a month), insurance (about $1,000 a year, $80 a month), road tax (about $1,000 a year, $80 a month), this would add up to about $520 a month. Add your monthly instalment to it, and you can expect to spend about $1,500 or more each month on your vehicle. This is on top of the down payment you must also pay.
At $1,000 a month, some may argue that one can already take about 30 taxi/private-hire rides a month (assuming an average fee of $33/ride). While that is certainly true, it’s also likely that car buyers looking for such COE cars today may still prefer the convenience of having a car if they need to run errands, such as ferrying their kids or elderly parents daily or as a mode of transportation for work.
Finally, COE cars are older, so owners will need to be prepared for the cost of repairs and replacement parts that may add to the cost of their ownership.
Read Also: COE Prices Continue Increasing. But Should Anyone Really Be Surprised?
This article was first written in 14 August 2023 and we have updated it with the latest listings
The post How Much Does It Cost To Own A COE Car In Singapore Today appeared first on DollarsAndSense.sg.
