Key Takeaways:
- Used cars in Singapore are significantly cheaper than new cars, and they also depreciate at a slower pace.
- The main financing options for used cars are bank loans, in-house loans offered by dealers, balloon financing and cash.
- When buying a used car, it is important to do price research and to know how to inspect a vehicle thoroughly.
- Cars purchased at dealerships tend to be more expensive than cars purchased directly from the owner, but the process is more convenient as dealers help with paperwork and administrative matters, and the car is protected by the Lemon Law.
Cars are notoriously expensive in Singapore. Buying a used car in Singapore is a key way to make an expensive purchase slightly more affordable.
When you buy a second-hand car instead of a new one, the upfront capital needed is lower, your car insurance is likely to be cheaper, and the car’s value will depreciate more slowly. But your purchase typically comes with its own set of complications.
This article will walk you through how to buy a used car in Singapore, the costs involved and what to look out for when shopping for a used car in Singapore.
Buying a Used Car in Singapore: Pros & Cons
| Pros | Cons |
|---|---|
| Lower purchase price | Shorter duration before COE expires |
| Slower depreciation | Higher maintenance costs |
| No need to pay COE or ARF upfront | Warranty may expire sooner or may already be expired |
| Can take out a loan with a shorter tenure | Loan interest rates may be higher |
| Insurance is generally cheaper | Insurance may still be higher for certain models |
| Wider range of models available | The most current models may not be available |
| Faster transaction |
Aside from the above pros and cons, remember that the remaining COE, maintenance costs, financing and repair history will have an impact on the total cost of car ownership.
Cost of Buying a Used Car in Singapore: At a Glance
Before buying a used car in Singapore, it’s important to understand the total costs of car ownership, not just the purchase price. This will help you estimate the overall expenses, set a realistic budget, and determine how much you can comfortably afford.
Besides the car’s purchase price and COE, you also need to factor in additional costs, such as insurance, road tax, parking, maintenance, and petrol or EV charging.
Below is an estimate of the costs to expect when buying a second-hand car in Singapore.
| Car Essentials | Estimated cost |
|---|---|
| Certificate of Entitlement (COE) | Included in purchase price – S$129,000 to S$130,889 (Jul 2026) |
| Open Market Value (OMV) | Included in purchase price – S$18,000 to S$105,000 |
| Additional Registration Fee (ARF) | Included in purchase price – S$13,000 to S$120,000 |
| Preferential Additional Registration Fee (PARF) Rebate | 5% to 30% rebate capped at S$30,000 for petrol cars registered from Feb 2026 (PARF rebate for scrapping car in final year may be added to purchase price) |
| Car insurance | S$700 to S$2,500 |
| Interest rate | 2.28% to 2.88% p.a. from bank |
| Maintenance | Approximately S$500/year |
| Petrol/EV charging | For regular users, over S$100/month for petrol cars or S$50/month for EVs |
| Electronic Road Pricing (ERP) charges | Over S$50/month for commuters to CBD |
| Parking | S$80 to S$500+ for 1 month’s season parking |
The estimates for OMV and ARF are based on LTA’s data for cars registered in May 2026.
How to Finance a Used Car
When buying a used car in Singapore, you have several financing options, listed below.
Based on the interest rate quoted, you can use a car loan calculator to work out your monthly loan repayments, loan eligibility, and interest payments.
✔️ Bank Loan
Car loans offered by banks are secured loans that typically come with relatively low interest rates, although you should still make sure to compare across banks to find the most affordable.
Car loans from banks are regulated by MAS, will affect your Total Debt Servicing Ratio (TDSR) and may be harder to qualify for. There is a maximum loan-to-value (LTV) ratio of 70% for cars with an OMV of up to S$20,000, and 60% for those with an OMV of over S$20,000, which translates to a down payment of at least 30% to 40%. The maximum loan tenure is 7 years, but may be shorter depending on the remaining COE of the used car.
Banks can also provide unsecured personal loans, which are more flexible as the money can be used in any way you wish. The maximum loan amount will depend on your income and the bank’s risk assessment, but note that personal loans may come with higher interest rates and a shorter loan tenure.
✔️ In-house Financing
In-house loans are provided by dealers and are not regulated by the government, so terms may be negotiable and they do not have to follow the LTV mandated by MAS, nor do they count towards your TDSR.
Such loans are generally easy to qualify for and may be your only option if you don’t qualify for bank loans or are buying a car that is too old.
However, in-house loans usually carry very high interest rates and may also include admin fees. Always weigh the pros and cons carefully before committing!
✔️ Balloon Financing
Balloon financing schemes are offered by dealers and exclude the PARF from the loan amount, which lowers your monthly loan repayments.
However, you will pay higher interest rates, and there may be penalties involved if you change cars during the loan tenure.
✔️ Cash
If you have enough cash upfront, this is the cheapest option as you do not have to pay any interest.
Tips for Buying a Used Car in Singapore
Cars are big-ticket items and should not be purchased on a whim! It’s thus important to evaluate your finances as well as the vehicle itself before committing to such a significant purchase. Here’s what to look out for when buying a used car:
#1 Research to Compare the Car’s Value
Preliminary research can be done online. Prices for a single model can vary wildly on the second-hand market, so it is important to understand its true market value.
Search for your desired car models on sites like Motorist, SgCarMart, Carro or Carousell to get a good idea of how much people are selling your desired car model for. As prices will vary according to the number of years remaining on the COE, you’ll want to check prices of the same model across different COE balances.
Based on what you can afford, shortlist a few models that fulfil your requirements. You can also read and watch car reviews to narrow down your choice further.
#2 Get Advice From the Community
If you have any unanswered questions, there is a community of experienced drivers willing to help on forums like r/drivingsg and Singapore EV Enthusiasts (EVE) Group.
These groups are particularly helpful if you’re looking for opinions about certain models, as they offer access to drivers who already own the cars you are interested in.
#3 Go With a Reputable Car Dealer
Once you have a good idea of the models you’re interested in, it’s time to look for a dealer. To avoid getting scammed, it’s best to stick to car dealers with CaseTrust accreditation and which have demonstrated a base level of reliability.
It’s also worthwhile to read reviews and ratings from past customers when deciding which dealerships to visit.
#4 Get a Professional Inspection
At the dealership, you’ll be able to test drive vehicles that interest you. However, before committing to a purchase, you may wish to have a professional inspection performed on the car. If the dealer objects to a third-party inspection, that may be a sign to look elsewhere.
You can engage third-party inspection providers such as STA or VICOM for a comprehensive evaluation and unbiased inspection of the car and its components, including the odometer, which can be tampered with. You should also familiarise yourself with key signs of odometer tampering.
#5 Check the Vehicle’s Condition
Whether or not you’re paying for a professional inspection, you should conduct your own evaluation of the vehicle. Bring along a knowledgeable friend or family member if necessary.
Before driving, you should check that tyres are not worn out or uneven, and that the dashboard and warning lights are functioning, as well as the headlights and brake lights. Also check for fluid leaks behind the car.
To ensure the car battery is in good condition, the engine should start easily and smoothly the first time you turn the key in the ignition.
When driving, look out for signs of overheating, such as the temperature gauge indicating an unusually high temperature and steam coming out of the bonnet.
Pay attention to any noises when braking, how the brakes feel and whether you need an unusually long distance to come to a complete stop.
#6 Test Drive
Test driving the car is essential as it enables you not only to see if you like the feel of the car, but also to check for defects. Never buy from a dealer that does not allow you to test drive the vehicle first!
You should also test the acceleration and brake feedback and check steering alignment to ensure that the car can be handled smoothly. The gears should shift smoothly and easily, and the aircon should be working normally. Keep an ear out for loud or odd noises when driving, too.
#7 Request for Documentation
Ask the dealership for the car’s servicing history, report or log, as well as proof of the remaining warranty.
You should also ensure that all outstanding loans, insurance, road tax, fines and any other fees have been paid, and ask for receipts or other proof of payment if necessary.
Know, however, that documentation cannot paint a full picture of the car. If at any time you suspect that the car has any undisclosed defects or has been tampered with, it’s safer to walk away.
Things That Affect a Car’s Valuation
The same model can command very different prices depending on several factors.
Car’s Mileage and Age
One key factor influencing a second-hand car’s price is its mileage and age. An older car with higher mileage is likely to suffer from more wear and tear than a newer one that has not travelled as many miles.
It is important, however, not to take low mileage at face value, as there have been cases of odometer tampering. If a vehicle has low mileage, check that it is still using its original tyres, and that the level of wear and tear is normal for the indicated mileage. The car’s maintenance records should also be consistent with the odometer reading.
Factors such as servicing history and the seller’s driving habits matter, too. A car that has been serviced regularly and driven by a responsible driver can still be in good condition despite high mileage.
Vehicle’s Condition
Try to glean as much information as you can about past accidents, repairs and the car’s maintenance history through documentation, inspection and quizzing the dealer. You don’t want to buy a car that is being sold because of problems caused by past accidents or issues.
COE
The number of years remaining on a car’s COE affects the vehicle’s value significantly.
A car with close to 10 years left on the COE will appear relatively expensive as the cost of the COE will be factored into the selling price. On the other hand, a car whose COE is about to expire may look cheap, but end up being costlier when you factor in the impending COE renewal.
Based on the remaining COE duration, you may also be entitled to future PARF rebates should you decide to scrap the car before the COE expires. You can also benefit from the remaining validity duration of road tax that has already been paid.
If you’ve decided to buy a used car whose COE expiry date is coming up soon, make sure you don’t miss the renewal deadline to avoid being slapped with a late renewal fee!
While we’re at it, know that you can choose to renew the COE for either five or 10 years. But if you opt for a five-year renewal, the car must be deregistered and scrapped upon the expiry of the five-year COE. For this reason, you should also check whether the COE of any car you’re considering purchasing has been renewed for five or 10 years.
Battery Health (for Electric Vehicles)
When buying a used electric vehicle (EV), ask for a battery health certificate or report issued by a certified EV technician. You want to be sure that the battery has not degraded prematurely.
You should also ask to see the battery warranty, so you know exactly what’s covered and when that coverage ends.
Related read: Best Cashback & Miles Credit Cards for EV Charging
Buying a Second-Hand Car in Singapore: Car Dealer vs Owner
| Buying from a car dealer: Pros | Buying from a car dealer: Cons |
|---|---|
| Wide range of models available | More expensive than buying directly from the owner |
| CaseTrust-certified dealers likely to be more reliable | |
| Viewing anytime during dealership’s working hours | |
| Car may be refurbished | |
| Protected by Lemon Law | |
| Dealer helps with paperwork and administrative matters |
| Buying from the owner: Pros | Buying from owner: Cons |
|---|---|
| Cheaper than buying from dealer | Must contact a different seller for each car |
| Viewing must be at a time that suits both buyer and seller | |
| Car unlikely to be refurbished | |
| Must handle own paperwork and administrative matters | |
| Not protected by Lemon Law |
Conclusion
Buying a used car in Singapore may make financial sense due to the lower prices and slower depreciation. While there are many costs involved, many of them, such as the price of COE, Registration Fee and ARF, will already be factored into the selling price.
The main disadvantage of buying a used car in Singapore is that you will need to do some serious price research and inspect the car more thoroughly than you would when buying a new vehicle.
Opting to buy from a dealer rather than an owner will cost more, but may offer greater convenience through assistance with paperwork and administrative matters, as well as Lemon Law protection.
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Frequently Asked Questions
Is buying a used car worth it in Singapore?
Yes, used cars in Singapore cost less than new cars, and also depreciate at a slower rate.
How much down payment is required for a used car
The minimum down payment when taking out a bank loan is 30% for cars with an OMV of S$20,000 or less, and 40% for cars with an OMV of over S$20,000.
Can I get a loan for a used car?
Yes, you can take out a used car loan from a bank or from the dealership. Weigh your options carefully before deciding!
What mileage is considered too high?
The average mileage for a 10-year-old car in Singapore is about 200,000 km, with luxury or sports cars usually having a lower mileage. Anything above that may indicate that the vehicle has been heavily used.
How much does it cost to maintain a used car?
Typical car maintenance costs tend to be about S$500 a year, but the amount will vary depending on how intensively the vehicle is being used.
When parts get worn out, the repair or replacement costs that come with owning a used car can rack up considerably, too.
