Owning a car in Singapore is a privilege that’s not available to everybody. Potential vehicle owners have to consider the cost of the vehicle and the Certificate of Entitlement (COE), which is necessary to own a vehicle in the country. So, owning a vehicle in Singapore is a privilege granted to people prepared to spend a good amount of money on it.
But before taking out the checkbook and writing a check, people should consider several things that will affect their decision to own a vehicle in the country. Here are the things that people should consider if they plan to own a vehicle in Singapore.
Affordability and Budget
The first thing potential vehicle owners in Singapore should consider is the affordability of the vehicle and their budget. Some people are tempted to spend more than what they earn. But they should remember that the cost of owning a vehicle goes beyond the initial purchase.
Before buying a vehicle, people should check if they need a luxury vehicle or if an ordinary vehicle is suitable for their needs. They should also consider the cost of operating the vehicle. The costs they should consider are fuel, maintenance, tires, and repairs, among others. These costs depend on the type of vehicle they bought, the road surface, average speed, and speed cycles.
People should treat the vehicle as an asset that allows them to travel without relying on public transportation. They should also factor in parking fees, vehicle insurance, and road tax. These play a major factor in the vehicle that they should buy since it will affect their finances in the next few years.
Cost of Financing
When looking for a vehicle, people should also consider the cost of financing the vehicle. They should check for loans available for them. Approaching several banks to see their terms and the deals they offer is a good idea.
People should check the interest rates and flexible payment terms. They should consider loans that are affordable for them at the moment. Once they receive a salary raise, they should consider a car loan refinancing to get better terms for their loan. This move allows them to get the best financing options that help them save money in the long run.
But they should make sure to follow the rules of the Monetary Authority of Singapore (MAS) in these situations to avoid issues in the future. They should remember that a loan is a considerable financial commitment that they should fulfill. They should also check if their savings are suitable to cover the monthly installments of the loan.
Features and Functions
Aside from the financial aspect of owning a vehicle, people should look for a vehicle that’s suitable for their needs. While two-door convertibles look good, they are not advisable if people have to ferry their elderly parents from one place to another. It’s also challenging to install a child seat on these types of vehicles.
People should make informed decisions and consult a mechanic before finalizing their decision. They should ask the mechanic to check the engine of vehicles they are considering. People should also check the fuel consumption of the vehicle. The oil market’s volatility makes it essential for people to look for a vehicle that has good fuel mileage so it will not have a considerable effect on their finances.
Additionally, potential vehicle owners should consider getting a vehicle that seats five or seven people. This prepares them for an increase in the members of their household in the future. It also provides enough space when they shop for groceries.
Brand-new or Secondhand
Another decision that potential vehicle owners should make is whether to buy a brand-new vehicle or a secondhand vehicle. At this point, their finances will play a major factor since a brand-new car is expensive and requires a considerable initial down payment. If they do not have the funds to cover the down payment, they should settle for a secondhand vehicle.
But a secondhand vehicle will have issues that you need to deal with in the future. This is particularly true for older models that are available in the market. While the lemon law in the Consumer Protection (Fair Trading) Act (CPFTA) protects consumers from defective products, these types of vehicles are more susceptible to wear and tear. So, people should make sure to have an experienced mechanic check the vehicle before they buy it.
Additionally, potential vehicle owners should consider getting a secondhand car if they need the vehicle as soon as possible.
People should consider a lot of factors before they finalize their decision to buy a vehicle in Singapore.