Buying Used Cars in Singapore: Where to Buy, What to Check, and How to Stay SAFE

Buying a new car in Singapore isn’t cheap. From the Open Market Value (OMV) to the Additional Registration Fee (ARF) and sky-high COE prices, it’s no wonder many drivers are turning to used cars or pre-owned cars to save money. Whether you’re a first-time buyer, hunting for your dream car, or trying to avoid the sharp annual depreciation of a new model, buying pre-owned cars can be a smart move—if you know what to look out for, especially the car's condition.

This guide covers where to buy second-hand cars in Singapore, how to check a car’s condition, what costs to factor in (like car loans, road tax, and insurance premiums), and how to avoid common issues through tools like the SAFE checklist and Lemon Law.

Where to Buy a Second-Hand Car in Singapore

1. Used Car Dealers

For convenience and a variety of vehicle types, head to used car dealers. You’ll find everything from popular cars to PARF cars (cars with remaining Preferential Additional Registration Fee rebates) and COE cars (vehicles renewed beyond their initial 10-year COE). Reputable dealers will provide clear information on the car’s condition, mileage, purchase price, and years left on the COE.

Want the best deal? Visit near the end of the month—dealers may lower the selling price to hit targets.

2. Car Auctions

Auctions offer the chance to buy cheaper cars—but often at your own risk. It is crucial to consider the financial implications, such as ensuring car loans are paid off before the COE expires. COE cars, repossessed vehicles, and cars with high depreciation may be available at lower market prices but be sure to research beforehand. Cars may come without warranties or test drive options, and maintenance issues or weird sounds could cost you down the line. Read our article on how to check if a car has been in an accident.

3. Direct from the Previous Owner

Buying directly from the owner may get you a better price. Plus, you’ll avoid dealer fees and can often compare offers. You’re more likely to hear about common issues, maintenance costs, or service history directly from someone who knows the vehicle.

Make sure the loan is cleared, and always request a test drive before agreeing to a sale.

4. Authorised Pre-Owned Dealers

Prefer peace of mind? Authorised dealers offer certified pre-owned vehicles that go through strict inspections. These cars often include warranties and are a safer option for buyers worried about engine problems, mileage manipulation, or hidden costs. The entire process is designed to be smooth, ensuring a seamless and pleasant experience for customers.

5. Digital Marketplaces

Today’s digital platforms like CARRO or Motorist.sg let you buy second-hand cars online—sometimes without a test drive. To address buyer hesitation, these platforms may offer benefits like a 3-day return policy or wear-and-tear guarantees. This is especially useful for buyers trying to save money and avoid high monthly instalments or higher interest rates on brand-new cars.

6. Importing a Unique Car

Want a ride that turns heads? If your dream car is something rare—like Steve McQueen’s Bullitt Mustang—or a vintage import, you can consider bringing it into Singapore yourself. But be prepared: importing a used car comes with a strict set of requirements and added fees.

Here are some of the legal criteria you’ll need to meet:

• Must comply with Singapore’s Road Traffic Act and related Subsidiary Legislations
• Undergo registration inspection at an LTA centre
• Must have LTA-approved modifications, including:
  • Safety glass
  • Right-hand drive
  • Approved safety belts
  • Asbestos-free clutch and brake linings
  • CFC-free air-conditioners
  • Speedometer in km/h
• Must be less than three years old
• Must meet NEA exhaust emission standards
• You’ll also need to pay a $10,000 surcharge for each imported used car

These imported vehicles still require COE, and will likely come with higher maintenance costs, unique insurance premiums, and additional registration fees. If you’re serious about importing a second-hand car, check the LTA website for the latest requirements and guidelines.

This path is best suited for car enthusiasts, collectors, or anyone committed to driving a one-of-a-kind vehicle in Singapore.

What to Check Before Buying a Secondhand Car

It’s not just about where you buy—it’s about what you check before signing anything on those wheels.

Don’t Skip the SAFE Checklist

Before you hand over your loan amount, ask for the SAFE Checklist (Standard and Functional Evaluation) developed by the Consumer Association of Singapore (CASE). It’s a tool to assess a car’s visual and functional aspects and protect your value as a buyer.

Checklist covers:

• All headlights and headlamps are functional.
• Air-conditioning remains cold for a prolonged period after the air-conditioning is turned on. If not, indicate unsatisfactory.
• The In-Vehicle Unit (IU) is able to read and detect the value of the CashCard inserted.
• Windscreen wipers are able to function at different speeds and there are no abnormal sounds.
• Side windows can be wound down and up using the applicable buttons and there are no abnormal sounds.

Although not mandatory, responsible dealers should guide you through this. If not, walk away.

Professional Evaluation

For more peace of mind, consider investing around $150 in a professional vehicle evaluation by centres like Vicom, STA Inspection, or AA Singapore to get an accurate estimate of the car's condition. It could save you thousands in unexpected repairs later on. Think of it as insurance against major maintenance costs or engine failure.

Inspecting and Test Driving a Pre-Owned Car

Inspecting and test driving a pre-owned car is an essential part of the buying process. Here are some tips to help you inspect and test drive a pre-owned car:

1. Check the Exterior: Look for any signs of damage or wear on the exterior of the car. Check for dents, scratches, and rust, as these can indicate how well the car has been maintained.
2. Check the Interior: Look for any signs of wear or damage on the interior of the car. Check for stains, tears, and odors, as these can affect the car’s comfort and resale value.
3. Check the Engine: Look for any signs of leaks or damage on the engine. Check the oil and coolant levels to ensure the car has been properly maintained.
4. Check the Transmission: Look for any signs of leaks or damage on the transmission. Check the transmission fluid level to ensure it is at the correct level and in good condition.
5. Take a Test Drive: Take the car for a test drive to see how it handles on the road. Check for any unusual noises or vibrations, as these can indicate potential issues with the car.

By following these tips, you can get a better sense of the car’s condition and make a more informed decision when buying a pre-owned car.

Understand Lemon Law in Singapore

If your second-hand car has defects within six months of purchase, you’re protected under Singapore’s Lemon Law. The burden falls on the dealer to prove the issue wasn’t present at delivery. If they can’t, they’re obligated to offer a repair, refund, or replacement.

This law is especially useful for first-time buyers or those purchasing from less-known sellers.

Budget for Total Costs

Owning a car in Singapore goes beyond the purchase price. Here are some hidden and ongoing expenses to consider:

• Loan financing and monthly instalments
• Interest rates (used cars may attract higher interest)
• Insurance premiums
• Road tax
• Maintenance costs
• COE expiry date and possible COE rebates
• PARF rebates (if applicable for PARF cars)
• Depreciation and future resale value

Use this data to calculate total ownership costs—not just the upfront sale price.

Protect Your Purchase

Here’s a quick checklist before you commit:

• Choose a reputable seller (dealer, owner, or platform) - consider their history and reviews
• Ask for the SAFE Checklist and walk through it
• Book a third-party inspection
• Understand your Lemon Law rights
• Compare used car insurance options before finalising

Final Thoughts

Buying a used car in Singapore doesn’t have to be stressful. With the right knowledge—and a bit of due diligence—you can drive away with a great deal and peace of mind.

And remember, no matter where you buy your next Singapore second-hand car, you’ll need reliable insurance. Check out award-winning car insurance plans at Budget Direct Insurance Singapore for a better deal.

Wherever you go, whatever you do, remember it’s vital to have good .
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