How does buying a car in Singapore in terms of paper works and fees? Find out here
When you purchase a brand new or a used car, it is completely important for you to consider the annual depreciation of the vehicle. The depreciation can show you the real cost of ownership and the operational costs of the vehicle of your choice based on annually.
To add more, the costs of the gas maintenance come along with it. This kind of concept is completely important for you to learn as this will impact the value of your car in the long run and can ultimately determine how much you will be earning if you resell it in the market of used cars through using a specific formula or calculation though determine the registration fee and the additional registration fee.
Just think about the items your vehicle is registered in Singapore which has a registration fee of $140 where there is also has a current and tiered ARF system for cars that are registered with its own COE’s, which can be a costly amount.
The ARF is usually based on the OMV of the car that usually ranges from a hundred to a hundred-eighty percent of its entire value. To bring it all, the COE, and the ARF are the two main reasons why cars can be very expensive when you live in Singapore.
Purchasing a car in Singapore would mean that you have to be financially committed to making it. Therefore, it is important for you to consider some important key points before you purchase a new car for yourself. To learn more, here are some of those important key points.
- Learn more about the Certificate of Entitlement (COE)– This means that when you purchase a car, you should know the COE which means that it is your right to own a vehicle and use it for the roads in Singapore within a decade. With a COE on your possession, this will allow you to register your car or you cannot drive it legally on the roads of Singapore.
- Learn also about the Open Market Value (OMV) – This is the price that you pay or the payable for the car when it is sold for export to the country through importation. The Singapore’s customs are the one that determines your car’s OMV when it enters Singapore by taking into account the entire purchase price, the freight, and the insurance along with other necessary charges to the sale up to the delivery of the car in Singapore. OMV is important because this will determine your car’s value that affects both the car’s Additional Registration Fee or ARF and the Preferential Additional Registration Fee or PARF.
- Determine how much registration fees you need to pay– To register your car in Singapore, you have to pay $220 which also has its own ARF that serves as the tax upon the registration of the car that is calculated based on the percentage of the OMV of the car. However, you can get a PARF rebate when you buy a car in Singapore if you decide to deregister it before it reaches the ten year period where you will get an entitlement for the PARF rebate that reimburses you of the ARF that you paid for registering your car.