This Is How Singaporeans Afford Cars
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This Is How Singaporeans Afford Cars

Singapore’s transport system is so efficient that you won’t really need a car to get from one place to another. 

Still, if you’re wondering how much it takes to buy a car in Singapore, some of its best car dealerships can help you look at good deals.

But before you do, let’s answer this question first…

Is owning a car expensive in Singapore?

Car prices in Singapore remain to be the highest in the world. The average cost of a compact car was S$100,000 in 2019, and a mid-market SUV would be anywhere between S$90,000 to S$110,000.

But why are the cars in Singapore so expensive in the first place?

Singapore’s transportation infrastructure means its roads aren’t built for every Singaporean to drive a car. Traffic jams and choke points would be the result if they do.

Aside from the Vehicle Quota System, there are additional costs on the Certificate of Entitlement and car insurance which are strict requirements of car ownership in Singapore. 

These costs add up significantly on top of the already astronomical price tag of a car.

How do Singaporeans afford cars?

How do Singaporeans afford cars

There are several ways that Singaporeans can still afford cars without having to go through so much financial anxiety.

1. By Purchasing from Used Car Shops

One of them is by buying from used car dealerships in Singapore. Many of them require low down payments and flexible payment options to suit a wide range of budgets and finances.

Also, those who only need cars on specific occasions and events can opt for car rentals in Singapore instead of buying their own vehicle. Aside from being a more affordable alternative, renters won’t have to worry about the car’s maintenance and upkeep.

2. By Having a Monthly Post-CPF Salary of Around $1,000

By Having a Monthly Post-CPF Salary of Around $1,000

To be perfectly blunt about it, Singaporeans with enough after-tax salaries can afford to buy cars. And it’s not just the car’s initial cost that needs to be met, either.

Many financial experts advise would-be car owners to set aside around 30% of their post-CPF salary to finance their cars. For most millennials with jobs that pay $3,200, that would be around $960.

But this isn’t the total amount you’ll need to pay yet. Aside from monthly instalments, you’ll need to consider the cost of petrol, parking, maintenance, and other car care expenses.

3. By Looking into Financing Options

By Looking into Financing Options

If you don’t want to use up your life savings in one go just to own a car, you should look into other financing options. As previously mentioned, used car dealerships often offer flexible ones for different clients.

A lot of dealers have partnerships with banks for clients who need car loans in Singapore. These partnerships often have discounted or promotional rates while offering to do the legwork and paperwork for the client.

Additionally, some dealerships also choose to partner with reputable car repair services to help new car owners take care of and maintain their vehicles in tip-top shape. 

4. By Offering Carpool Services to Other Passengers

By Offering Carpool Services to Other Passengers

After getting a car, Singaporeans can opt to save and earn money via the sharing economy. Luckily, incentivising your car use with a new source of income is possible in Singapore.

For starters, there are plenty of delivery driver jobs in Singapore that pay well enough for you to recoup your car expenses. You can also consider carpooling services. 

You can offer to pick up and drop off your office colleagues to and from work and save on petrol, time, and transportation fees while you’re at it.

Make sure you stick to Singapore’s carpool laws and your own insurance policies, though. Singaporean drivers and car owners are only allowed up to four carpool trips per day.