Buying A Secondhand Car in Singapore [The Ultimate Guide]

There are things to keep in mind and research when buying a second-hand car. Start by determining your requirements in a car. This will help you focus your search later on. Some factors to consider include:

• How many people will be using the car?

• Why do you need the car?

• What brand or model do you prefer?

• What is your budget?

• How much is your budget for monthly payments?

• Are you looking for a car with a warranty?

After considering these factors, it's time to start your research. 

Take note that there are prices to consider when buying a second-hand car, including the car registration fee, additional costs like road tax, and COE. All of this must be considered in your budget in order to avoid overspending.

Looking for the right deal is a process that takes time and effort. There are many things to consider when trying to get the best price, such as the car's make and model, age, condition, and any special features it may have. Here's a quick guide on how to get started:

• Have a budget in mind

• Know what you want before you start looking

• Check out local used car dealers and classified websites.

• Apply for a car loan if necessary

• Compare the selling price of different sellers.

• Negotiate with the previous owners for a better price

• Inspect the car before buying it

• Make sure to get a warranty or insurance plan.

Making a list of potential used cars is a great way to narrow down your options and focus your search. Once you've found a few vehicles that meet your requirements, it's time to arrange viewings with your dealer so you can take them for a test drive.

Before purchasing a used or second-hand car, it's important to inspect it thoroughly. This will help you spot any potential problems that could cost you money down the road.

When you're up and ready to take a closer look at the car, there are a few things you should do to make sure you're getting the best deal:

1. Check the car's exterior for any damage. Look for dents, scratches, and rust. Since the car isn't a brand new ride, you can also check under it if there are any oil leaks.

2. Pop open the hood and check the engine compartment, engine oil level, and colour. A healthy engine will have clean, amber-coloured oil. It is also best to check the car's mileage to know how far it has gone and been used.

3. Opt to take the car for a spin to see how it feels and listen for any strange noises.

If you're not comfortable inspecting the car yourself, you can always take it to a mechanic for a thorough check or inspection. They'll be able to tell you if there are any significant problems with the car that could end up costing you a lot of money to fix.

Age is an important consideration when buying a used car. If you're looking for a cheap car that you can mod or customize, you may consider buying an older car model. A new car will likely have fewer problems and be easier to maintain. It's crucial to inspect the vehicle before buying it to ensure no significant problems.

You'll want to test drive a car on different types of roads, in different weather conditions and with varying amounts of weight in the car. Excessive noise from the tyres means the wheel bearings need to be replaced. 

Drive the car on a straight, quiet road and release its steering to test its wheel alignment. Accelerate hard and ensure the gears shift smoothly to feel how the car handles.

When a car is less than ten years old, it's considered a PARF car. This means that the car has a Preferential Additional Registration Fee (PARF) rebate. PARF rebates are discounts on the car's registration fee.

On the other hand, a more than ten-year-old car is considered a COE car. This means that the car has a Certificate of Entitlement (COE). The COE is a document that allows you to register and use the car for a certain period.

When deciding which is better for you, it's essential to consider the pros and cons of each option. PARF cars have a lower initial cost, but you'll have to pay more to renew their registration when the time comes. COE cars have a higher initial cost, but you'll save money on registration renewal fees.

It's also important to remember that PARF cars can only be sold to car dealers, while COE cars can be sold to anyone. So, if you have any plans on putting your car up for sale in the future, you may want to consider buying a COE car.

The bottom line is that there's no right or wrong answer when choosing between a PARF or COE car.

Buying a used car is a sensible option for many people. The price of owning and running a new car can be expensive to some, so a used one is often seen as a more affordable option.

However, a few things to keep in mind when budgeting for your used car purchase. Here are some possible fees you may encounter:

Car Insurance

Car insurance is a legal requirement in Singapore, so you'll need to factor it into your budget when buying a used car. The cost of car insurance in Singapore or any country highly depends on the make and model of your car and your driving history.

MSIG MotorMax offers comprehensive protection for your used car, with features such as 24/7 roadside assistance, personal accident cover, and more.

If you want to learn more about our car insurance plans, you can get a quote here.

Road Tax

All cars in Singapore must be registered with the Land Transport Authority (LTA) and have a valid road tax. The cost of road tax varies depending on the engine capacity of your car and the type of fuel it uses.

Administration Fee for Buying Used Cars

The previous owner or direct seller may charge an administrative fee when you buy used or second-hand cars. This is a one-time fee that covers the cost of paperwork and other administrative tasks related to the sale. This fee varies, but it's typically a small percentage of the total purchase price.

Car Maintenance Costs

Owning a car (big or small) is a big responsibility, and it's essential to factor the cost of maintaining it into your budget. Maintenance costs can vary depending on the model and make of your car and how well you take care of it. Common maintenance tasks include oil changes, tyre replacements, and brake pad replacements.

Looking into the car's maintenance records is a must, as it gives you a gist of the issues or repairs that the car has experienced in the past.

If you're not comfortable doing the maintenance tasks yourself, you can always take your car to a mechanic. However, this will add to your overall maintenance costs.

Car Loans

When buying your dream car, it's tempting to take out a loan to pay or finance the purchase. However, you should only do this if you're confident that you can afford the repayments. Loans typically have higher interest rates, so they can quickly become expensive if you're not prudent.

If you're considering taking out a car loan, shop around and compare offers from different banks or agencies before deciding.

When you buy a used vehicle, it's vital to get a copy of the vehicle log card. This document contains important information about the car, such as the vehicle, engine and chassis number, and the number of owners the car has had. This information can be helpful when it comes time to transfer car ownership. The vehicle log card can also verify the car's open market value.

Check with the owner or salesperson that the dealership offers a warranty for the vehicle under the lemon law. A warranty for second-hand vehicles is important to protect consumers if the car breaks down within a short period after purchase.

Print a copy of the used car advertisement as proof of agreement after contacting the owner or dealer for viewing. This prevents the dealer from altering the car's price or accessories provided at their discretion.

If your car doesn’t have motor insurance yet, better to get one now. The great thing about motor or car insurance is that you can find them easily online. A great example would be MSIG MotorMax. Our car insurance provides full coverage for your car and ensures that you are protected financially in the event of an accident. Don’t hesitate to give us a call to know more about MSIG MotorMax and its coverage.