The vast majority of cars on the road are Japanese or European. Toyota, Nissan and Honda hold a strong position in the market for economy and family cars, while Mercedes and BMWs rule the luxury car segment. Most other brands are available as well, including Hyundai, Opel, Peugot, Renault and Ford. Once you’ve made the commitment to buy a new car, a dealer will do pretty well everything for you, from obtaining the certificate of entitlement (COE) and insurance to financing and vehicle registration – all you need to do is be in possession of a valid residence permit. Almost all new car buyers take the dealers up on this package offer as it is genuinely a good deal.

 

The process starts when you sign a sales contract agreeing on the terms and conditions. You then pay a deposit and the dealer will start bidding on a COE for your vehicle. Once this is secured, registration and insurance can be finalised, and you’ll get a call to come and pick up your new wheels. 

 

The best showrooms are clustered around two locations, one on Alexandra and Leng Kee Road, just down from IKEA and the other at the East Coast’s Automobile Megamart at Ubi Avenue 2, near Eunos. The strip along Alexandra Road has flagship showrooms for most of the major car brands, including Cycle & Carriage – which sells Mercedes-Benz – and Performance Motors for BMWs. 

 

Buying a Used Car

Buying a used car can be tricky, as more of the administrative burden can fall on you, especially if it’s a private sale. But legitimate used car dealers can provide all the administrative services that a new car dealer would, and they usually do. The price will almost always include the cost of the transfer fees payable to the Land Transport Authority, which are set at 2% of the vehicle’s assessed value. The value is determined at the time of transfer by the Registrar of Vehicles. Used car dealers are spread out across Singapore, but a couple of good places to look are at Turf City, just off Bukit Timah, and at the Automobile Megamart. Like anywhere else in the world, be careful when buying a used car; have someone knowledgeable about cars come along with you and make sure all the paperwork is in order before you hand over any money.

 

Certificate of Entitlement

The Certificate of Entitlement, or COE as it is commonly referred to, was implemented by the government in 1990 in an attempt to control the number of vehicles on the road. Car owners must purchase a COE before registering a car. Each month the government releases a quota of COEs, the amount of which depends on prevailing traffic conditions and the number of cars scrapped. COEs are bought through a tendering process; but all car dealers package their cars with COEs for convenience. The COE is valid for 10 years after which the car must be scrapped, or the COE renewed. 

 

In the late 1990s COE prices could get up as high as the actual price of a car. Since then they have moderated somewhat and the prices have stabilised. The COE will be included in the price of any new car and you’ll often see two prices listed for new cars: one for the car with a guaranteed COE and the other with a confirmed COE. A guaranteed COE basically means that you’ll pay an extra couple of thousand dollars to get the COE right away by bidding at a higher cost. For the confirmed COE, you may have to wait for a week or two while the dealer waits for the right COE price to come along. COEs are auctioned off on the first and third Mondays of every month, with the bidding period lasting three days. A COE is good for 10 years and stays with the car if it changes owners but must be renewed after the 10 year period. For detailed information visit www.lta.gov.sg.