Blog / Car Insurance
Compare new car prices in Singapore after latest COE reduction
Unlike anywhere in the world, Singaporean car buyers are placed in a quandary when it comes to buying a car. While buyers in other countries only need to pay the purchase price, Singaporeans need to add the cost of the Certificate of Entitlement (COE) as a financial consideration to a purchase of a car, which makes most cars of choice exorbitant.
This has long been the major obstacle for many car buyers who have a specific make and model in mind to buy.
Here’s the good news. According to a report by consumer researchers ValueChampion Singapore, COE prices have dropped significantly compared to last year, which means this is as good a time as any to look for your car of choice.
You only have to look at the prices of some popular make and models in the past few months to see the declining trend.
A Category A Toyota Vios, which at the beginning of the year was priced close to $89,000, is now much cheaper, hovering at $82,000 (with COE) since mid August. This presents a saving of $7-8,000. The September COE price is currently at $30,209, which is the second lowest amount listing for Category A so far (in July, it went as low as $25,000).
A Category B Mazda 6 also shows a downward trend despite being a narrower gap compared to the pricing earlier this year. This month, the price for a Mazda 6 2.5 Luxury is $137,800 with COE, compared to $140,800 just last month.
The downward trend remains the same for other popular makes such as Honda, Mercedes-Benz and BMW. Where a year previously a Category A COE would costs S$46,778, they now go for $30,209, representing a 17% drop. The same goes for Category B COEs, which are 40% less expensive than they were in August last year, declining from $53,711 to $32,429.
Take a look at this graph for a list price of the most popular cars in Singapore.
How to pay for the car of your dreams?
A car loan typically charges annual interest rates of 2% to 3%. Make sure you’re aware of what interest rate you’re being charged as even a small variable can make a big difference on repayment amounts. Also, be aware of any fees being charged on top of the loan as this can bump up your monthly repayments significantly. To compare rates and estimate your monthly payment, try using the ValueChampionCar Loan Calculator Tool.
Remember the size of your car loan is restricted by loan-to-value (LTV) limits set by the Monetary Authority of Singapore. Loan size is 70% of the vehicle's OMV for cars with less than S$20,000 OMV and 60% for cars worth more than S$20,000. This means that borrowers need to make down payments of 30% or 40% of their car’s OMV - an additional factor to figure into your calculations.
Another great way to help you get your dream car on the road is to pay less for your car insurance.