If you’re a foreigner planning to live in Singapore, you may be wondering whether you can buy a car in the country. The good news is that foreigners are eligible to purchase cars in Singapore. However, there are certain legal requirements and financial considerations that you need to keep in mind before making a purchase.
To buy a car in Singapore, you need to obtain a Certificate of Entitlement (COE), which allows you to register and legally own a vehicle in the country for 10 years. Getting a COE is not an easy task, and it involves paying a hefty fee. Additionally, you’ll need to pay additional registration fees, excise duty, and GST, which can add up to a significant amount.
Despite the high costs, many foreigners still choose to buy cars in Singapore due to the convenience and flexibility that owning a car provides. In this article, we’ll explore the eligibility and legal requirements for buying a car in Singapore, as well as the financial considerations and ownership costs that you need to keep in mind.
Key Takeaways
- Foreigners can buy cars in Singapore, but they need to obtain a Certificate of Entitlement (COE).
- Buying a car in Singapore is a costly affair due to additional fees and taxes.
- Despite the high costs, many foreigners still choose to buy cars in Singapore for the convenience and flexibility that owning a car provides.
Eligibility and Legal Requirements
If you’re a foreigner living in Singapore, you might be wondering if you’re eligible to buy a car. The good news is, yes, you are! However, there are certain legal requirements that you must meet before you can purchase and register a vehicle. In this section, we’ll go over the different requirements you need to know about.
Foreign Identification Number (FIN) and Passes
To buy a car in Singapore, you’ll need a Foreign Identification Number (FIN) and a valid pass. The type of pass you hold will determine the financing options available to you. If you have an Employment Pass or S Pass, you can finance up to 70% of the car’s purchase price. If you have a Work Permit, you can finance up to 60% of the car’s purchase price.
Certificate of Entitlement (COE)
The Certificate of Entitlement (COE) is a permit that allows you to own a car in Singapore for a period of 10 years. You’ll need to bid for a COE before you can register your vehicle. The cost of a COE varies depending on the demand for cars at the time of bidding. As of March 2024, the current COE prices range from $25,001 to $40,000.
Vehicle Registration Process
Once you’ve obtained a COE, you can proceed with the vehicle registration process. You’ll need to submit an application for registration and licensing of a motor vehicle/revised off-peak car (Form R01/R01A) to the Land Transport Authority (LTA). You’ll also need to provide the Notification of COE and the Notice of Approval with Vehicle Approval Code (VAC) from the COE bidding process.
Insurance and Road Tax
Before you can drive your car on Singaporean roads, you’ll need to purchase car insurance and pay road tax. The cost of car insurance varies depending on the type of coverage you choose and the car’s make and model. The road tax fee is calculated based on the car’s engine capacity. You can purchase car insurance and pay road tax through the LTA’s website.
Overall, buying a car in Singapore as a foreigner is possible, but there are several legal requirements that you need to meet. Make sure you have a valid pass and a Foreign Identification Number (FIN) before you start the process. Additionally, be prepared to bid for a Certificate of Entitlement (COE) and pay for car insurance and road tax.
Financial Considerations and Ownership Costs
If you are a foreigner looking to purchase a car in Singapore, it is important to understand the financial considerations and ownership costs associated with owning a car in the country. In this section, we will cover the key factors that you need to consider before buying a car.
Understanding the Price Tag
The cost of owning a car in Singapore is high due to various taxes and fees. The price tag of a car in Singapore comprises of Open Market Value (OMV), Additional Registration Fee (ARF), Excise Duty, and GST. The ARF is calculated based on the OMV and is a percentage of the car’s value. The Excise Duty and GST are also calculated based on the car’s OMV.
Loan and Insurance Options
If you plan to purchase a car in Singapore, you may consider taking a car loan or insurance to finance your purchase. Many banks in Singapore offer car loans with competitive interest rates. You can also opt for car insurance to protect your investment.
Maintenance and Additional Expenses
Owning a car in Singapore also comes with additional expenses such as road tax, parking fees, petrol, and maintenance costs. You will need to pay road tax annually, and the amount varies depending on the engine capacity of your car. Parking fees in Singapore can be expensive, especially in the city centre. It is also important to factor in the cost of petrol and regular maintenance to keep your car running smoothly.
Buying a New or Used Car
You can choose to buy a new or used car in Singapore. New cars are more expensive due to the high taxes and fees, while used cars are cheaper and have lower depreciation. If you are considering buying a used car, you can check out online marketplaces or approach a car dealer. Carro Singapore is one of the popular online marketplaces for buying used cars in Singapore.
In conclusion, owning a car in Singapore can be a significant investment, and it is important to factor in all the costs associated with car ownership. By understanding the financial considerations and ownership costs, you can make an informed decision on whether to purchase a car in Singapore.
Frequently Asked Questions
What’s the minimum salary required to afford a car in Singapore?
There is no fixed minimum salary required to afford a car in Singapore. However, it is important to note that owning a car in Singapore is an expensive proposition due to the high cost of the Certificate of Entitlement (COE) and other expenses such as road tax, insurance, and maintenance. It is recommended that you carefully consider your financial situation before deciding to purchase a car in Singapore.
Is purchasing a vehicle in Singapore a wise financial decision?
Purchasing a vehicle in Singapore can be a wise financial decision if you need a car for your daily commute or other purposes. However, it is important to note that owning a car in Singapore is expensive due to the high cost of the COE and other expenses such as road tax, insurance, and maintenance. You should carefully consider your financial situation before deciding to purchase a car in Singapore.
What’s the initial downpayment needed for buying a car in Singapore?
The initial downpayment for buying a car in Singapore varies depending on the make and model of the car and the financing plan you choose. Typically, you can expect to pay a downpayment of around 30% of the car’s purchase price. It is recommended that you speak to a financial advisor or car dealer to get a better idea of the downpayment required for the car you are interested in.
What are the essential prerequisites for a non-resident to purchase a car in Singapore?
Non-residents who wish to purchase a car in Singapore must have a valid work permit or employment pass and a valid Singaporean driving license. They must also have a local address and be able to provide proof of their income. Additionally, non-residents must obtain a COE before they can register and own a vehicle in Singapore.
Can someone without a driving licence be the owner of a car in Singapore?
Yes, someone without a driving licence can be the owner of a car in Singapore. However, they will need to appoint a registered driver to operate the vehicle on their behalf. The registered driver must have a valid Singaporean driving license and be insured to drive the car.
Are work permit holders eligible to buy cars in Singapore?
Yes, work permit holders are eligible to buy cars in Singapore. However, they must meet the same requirements as non-residents, including having a valid Singaporean driving license and obtaining a COE before they can register and own a vehicle in Singapore. It is recommended that work permit holders carefully consider their financial situation before deciding to purchase a car in Singapore.