COE prices deterring you from buying a car? Here are some tips on how to shop smart for your next car.
Car ownership in Singapore requires bidding for the Certificate of Entitlement (COE). It’s the pass you need to own a car which also regulates the number of vehicles on the road.
Think of it like the stock market, but for cars. The price of a COE depends on how many are available and what’s going on in the economy. Lately, prices have been climbing. As of 19 October 2023, the COE for large cars with engines above 1,600cc or 130bhp and electric vehicles (EVs) above 110kW alone hit a whooping S$150,001, up by 2.74% compared to the last tender.
For folks who really need a car—be it for work or shuttling the family around—this hits the wallet hard. But there are ways to cut down on the costs of car ownership. Here are some tips to make it easier on your budget.
Related Story: Best Car Insurance Plans in Singapore
#1 Buy a secondhand car
Given that brand-new cars are on the pricier side, it may be more practical to purchase a second-hand ride, especially since a car’s value drops the moment it hits the road and even further over the years.
The COE system also drives (pun intended) vehicle owners to replace their cars when the 10-year COE expires. This results in a constant supply of relatively good second-hand cars in the market at budget-friendly prices.
Before purchasing your second-hand car, conduct your due diligence on the following factors
Your to-do list to buy a secondhand car
- Compare second-hand cars extensively by visiting used-car dealers and verified websites
- Inspect the car thoroughly before purchasing it, including test-driving it
- Bargain with the dealer or owner for an even better price
- Check the car’s mileage, as higher mileages can mean more repairs and maintenance
- Gauge the costs for wear-and-tear for the make and model of car you’re purchasing
- If you’re taking a car loan, ensure that the instalment sum is within your budget
- Buy a car insurance plan with ample coverage benefits
#2 Compare car insurance plans to get the best value and protection
With different car insurers and car insurance types in the market, it’s difficult to find the best match for your coverage needs.
Here are some of the best car insurance plans in Singapore, from FWD, MSIG, TIQ, and Singlife.
FWD Car Insurance
FWD car insurance provides coverage not just for you and your car. It also highlights a 50% lifetime NCD guarantee for being a safe driver, so long as you are with the company.
You can opt for enhanced benefits too — pick your preferred workshop beyond what FWD offers, insure any driver who drives your car, and more.
Insurance Coverage |
Classic |
Executive |
Prestige |
Damage & Repairs |
|||
Repair or replacement if your car is accidentally damaged, lost or stolen |
Available |
||
Any driver you trust to drive your car is covered |
Not available |
Available |
|
Standard excess each time your car is accidentally damaged. Amount varies depending on car make and model |
From S$750 |
||
Additional excess each time your car is accidentally damaged by a driver under 27 years old |
S$2,500 |
||
Towing costs if your car is damaged or unsafe to drive |
S$300 |
S$400 |
S$500 |
Safe travel after an accident |
S$40 per occupant |
S$60 per occupant |
S$80 per occupant |
Daily transport allowance while your car is being repaired |
S$40 per day, for up to 6 days |
S$60 per day, for up to 8 days |
S$80 per day, for up to 10 days |
Repair or replace your accessories if they are damaged, lost or stolen |
S$500 |
S$1,000 |
S$2,000 |
Windscreen repair or replacement (S$100 excess for replacement) |
Available |
||
Extended workmanship guarantee for repairs done by FWD premium workshops |
Available |
||
Courtesy car until repair is completed, or for up to three months if damaged beyond repair or permanently lost |
Not Available |
Available |
|
New car replacement for cars less than 12 months old (if your car is written off or permanently lost) |
Available |
||
Injuries to you or your passengers |
|||
Medical expenses in case of a car accident (per occupant) |
Up to S$1,000 |
Up to S$3,000 |
Up to S$5,000 |
Pay-out if the driver of your car dies or becomes permanently disabled from an accident |
Up to S$30,000 |
Up to S$50,000 |
Up to S$75,000 |
Pay-out for each passenger in your car who dies or becomes permanently disabled from an accident |
Up to S$10,000 |
Up to S$20,000 |
Up to S$25,000 |
One-time payment for surviving children if both parents die or are permanently disabled in a car accident |
S$250,000 |
S$375,000 |
S$500,000 |
Damage to your belongings |
|||
Replacement of damaged, lost or stolen keys and locks |
Not available |
Up to S$500 |
Up to S$1,000 |
Replacement of damaged, lost or stolen personal belongings |
Not available |
Up to S$1,000 |
Up to S$2,000 |
Damage to others |
|||
Legal costs if you are sued for damage caused by your car |
Up to S$3,000 |
||
Cover for accidental damage to someone’s property caused by your car |
Up to S$5,000,000 |
||
Unlimited cover if you’re legally responsible for someone’s death or injury caused by your car |
Covered |
||
Promotion |
8 April to 30 April 2024 Comprehensive Plans only: Use promo code “POLICYPAL” to get a 10% discount |
Related Story: Best Cheap Car Insurance for Used COE Cars 2023
MSIG MotorMax & MotorMax Plus
MSIG offers two plans for motor insurance. Both plans offer comprehensive insurance coverage of the insured vehicle over accidental loss or damage, up to the vehicle’s market value at that time. Other similarities include enhanced benefits for electric vehicle owners at the same price and 24/7 automobile and medical assistance.
MSIG MotorMax Plus provides extra benefits, including the choice of any workshop for repairs, transport allowance, new-for-old replacement, and loan protection.
Insurance Coverage |
Limits |
|
MotorMax |
MotorMax Plus |
|
Comprehensive Coverage Of Insured Vehicle against loss or damage |
Market Value of Insured Vehicle at time of loss or damage |
|
Liability to Third Parties |
||
Death or Bodily Injury to Any Person |
Unlimited |
|
Damage to Property |
S$5,000,000 |
|
Personal Accident Benefits |
||
Policyholder |
S$20,000 |
S$100,000 |
Authorised Driver and/or Passenger (up to legal seating capacity) |
S$10,000 each |
S$50,000 each |
Medical Expenses |
||
Policyholder |
Up to S$1,000 |
|
Authorised Driver and/or Passenger (up to legal seating capacity) |
Up to S$1,000 each |
|
Choice of Workshop For accident repairs to insured vehicle |
MSIG authorised workshops |
Any workshops |
Transport Allowance while the insured vehicle undergoes repairs following accident damage if the approved repair period is more than 3 days. If applicable, cover starts from first day of repairs |
Not covered |
S$50 per day Maximum 10 days |
New-for-Old Replacement Replace with a new vehicle of the same make, model, and engine capacity up to S$100,000 above the market value of the insured vehicle at the time of a Total Loss or Constructive Total Loss occurring within 12 months of its first registration, or pays for the difference. *Does not cover losses caused by floods, theft, or robbery of the Insured Vehicle *High performances, sports makes, and high value vehicles are excluded |
Not covered |
Covered |
Loan Protection Benefits Pays the outstanding loan amount in respect of the insured vehicle following accidental death of the Policyholder in direct connection with the insured vehicle |
Not covered |
Up to S$100,000 |
Windscreen Cover Due to breakage, subject to excess of S$100 for each claim *Excess is waived where repair to the windscreen is done instead of a replacement |
Auto reinstatement |
|
24-Hour Automobile and Medical Assistance Services |
||
Auto Assistance Helpline Services |
Available |
|
Emergency medical evacuation and repatriation of the Policyholder for accidents within the Geographical Area* (excluding Singapore) in connection with the Insured Vehicle *Singapore, West Malaysia and the part of Thailand within 80 kilometres of the border between Thailand and West Malaysia. |
S$50,000 |
|
Additional Benefits Applicable to Electric Vehicle |
||
Medical expenses is extended to cover Policyholder, Authorised Driver and/or passenger injured by electric shock as a direct result of an electric vehicle battery damage |
Not covered |
Up to S$2,000 each |
Emergency Electric Vehicle Towing Services Provides emergency towing services when your electric vehicle runs out of electricity during use, subject to excess of S$50 for each service engaged through MSIG’s Auto Assistance Helpline |
Not covered |
Covered |
Replacement of Car Lock and Keys |
Not covered |
Up to S$250 |
Promotions |
1 April – 30 April 2024 Exclusive AMTD PolicyPal Group, T&Cs Apply MotorMax: Get S$38 Rewards via payNow and S$100 e-vouchers from MSIG when you BUY NOW! Motormax Plus: Get S$58 Rewards via PayNow and S$120 e-vouchers from MSIG when you BUY NOW! ***Please refer to T&Cs or email us at [email protected] on how to redeem the rewards. |
TIQ Private Car Insurance
TIQ car insurance has some unique perks. For starters, drivers free of demerit points are rewarded with an extra 5% discount. All repairs islandwide from registered workshops come with a nine-month repair warranty.
Finally, you get to save more dollars by opting for “Drive Less Save More”, where you could get up to 30% in yearly cash rebates for driving less.
Insurance Benefits |
Coverage (Comprehensive Plan) |
Loss and Damage Costs due to Accidents |
|
Accidental loss or damage due to fire |
Covered |
Loss or damage due to theft |
|
Accidental loss or damage by other insured causes (not fire or theft) |
|
Accessories and spare parts due to fire and/or theft only |
|
Towing Service |
|
Towing fee to repairers or places of safety due to an accident |
Up to S$200 |
Legal Liability |
|
Death or bodily injury to third party |
Covered |
Loss or damage to property that belongs to other party |
|
Legal costs and expenses if you are legally responsible |
Up to S$2,000 |
Personal Accidents |
|
Personal Accident cover for policyholder due to a car accident |
Up to S$50,000 |
Medical expenses if policyholder/named driver or passenger in the vehicle is injured due to a car accident |
Up to S$1,000 |
Windscreen Cover |
|
Unlimited windscreen cover |
Excess of S$100 |
Daily transport allowance for authorised workshops and repairs exceeding 3 days |
S$50 per day (up to 5 days) |
Excess for Driver(s) |
|
Excess for driver(s) |
Adjustable excess up to S$2,500 to save more on premium |
Additional excess for Unnamed Driver |
S$500 |
Additional excess for Elderly, Young and Inexperienced Driver |
S$2,000 |
Promotion |
1 April – 30 April 2024 Comprehensive Plan ONLY: Use promo code “TIQPP” to get Up to S$300 TIQ Cashback when you buy now. T&Cs apply |
Related Story: Best Cheap Car Insurance for Families 2023
Singlife Car Insurance
Singlife offers three tiers in its car insurance plan: Motor Lite, Motor Standard, and Motor Prestige. The insurer also boasts to be the only company in town offering the lowest NCD penalty. Every claim made through Singlife will reduce your NCD by only 10%. If you were not at fault for the damages to your car, Singlife helps you retain your NCD, even without an excess payment.
Benefit |
Motor Lite |
Motor Standard |
Motor Prestige |
Loss or damage to your car |
|||
Accident loss, fire or theft damage (Up to the car’s market value including the COE. Your manufacturer-fitted car accessories and audio equipment are covered for an unlimited amount) |
Covered |
||
Brand new car replacement If the accident repair cost is >70% of its market value, and you bought your car when it was brand new, and the accident occurred within the specified time period mentioned in the policy. |
12 months |
24 months |
|
Repairs for your car |
Approved repairer only |
Any repairer (excess will be doubled if done at non-approved repairer) |
Any repairer |
Additional excess for young and/or inexperienced drivers If the driver (including policyholder) is aged 24 and below or has held a valid driving licence for less than 2 years |
S$2,500 |
S$0 |
|
Towing Services Unlimited Towing services to the nearest accident reporting centre |
Covered |
||
On-site accident reporting Receive accident reporting assistance at the scene of the accident in Singapore |
Not available |
Available |
|
Pickup from accident location You and your passengers can get a ride to any destination within Singapore following an accident |
Not available |
Available |
|
Your Liability |
|||
Coverage for death or injury to another person Unlimited, includes passengers. |
Covered |
||
Coverage for legal charges Unlimited, with Singlife’s consent. |
|||
Damage to third party’s property Up to S$5 million |
|||
Injury to you – Personal Accident |
|||
Death |
Not available |
S$50,000 |
S$100,000 |
For loss of limb |
S$25,000 |
S$50,000 |
|
For loss of sight/hearing in one eye/ear |
|||
Medical Expenses If you or any of your passengers in your car are injured in an accident. |
S$500 |
S$2,500 |
S$5,000 |
Personal Belongings Covers losses arising from your car due to fire, theft or an accident. |
Not available |
S$1,000 |
S$3,000 |
Child Seat Coverage Up to S$250 for damage to a fitted child seat in your car due to an accident, fire or theft |
Available |
||
Geographical Coverage Covers the use of your car in Singapore, West Malaysia and Peninsula Thailand (up to 80km from the border with West Malaysia) |
Available |
||
No Claims Discount (NCD) Step Down NCD step down for each and every claim. |
30% |
10% |
10% |
5% Safe Driver Discount Applies if you’re currently earning 50% NCD and are still claim-free when you renew with us. |
Available |
||
Windscreen replacement coverage Unlimited windscreen (glass) replacement cover if done at our approved repairers (otherwise, up to S$0 for Motor Lite, up to S$600 for Motor Standard and Unlimited for Motor Prestige only). |
Available |
||
Number of Windscreen Claims Allowed Windscreen Access |
1 S$100 |
Unlimited S$100 |
Unlimited S$0 |
Transport Allowance S$80 daily transport allowance (up to 10 days) while your car is being repaired after an accident. |
Not available |
Available |
|
Emergency Breakdown Assistance Receive free roadside rescue services when your car breaks down |
Not available |
Available |
|
Policy Extensions for Electric Car |
|||
Go Green Privileges Get rewarded with our special discount on insurance for your electric car |
Covered |
||
Electric Car Charging Cable Singlife covers losses if your electric car’s charging cable is lost, stolen, or damaged |
Not covered |
S$500 |
Unlimited |
Additional Total Loss Payout If your electric car is a total loss due to fire or explosion during charging, Singlife will pay 110% of its market value at the time of the loss |
Not covered |
Covered |
|
Promotion |
24 April – 30 April 2024 Use Promo Code “CAR23” to get 23% discount (new business ONLY) when you buy NOW! |
#3 Review your car loan options
Look beyond loan interest rates to find the best all-in-one plan for your car loan. Review car loan offers to find factors that match your needs. These can include the car loan’s tenure, fees, and any terms that may or may not suit your needs in the long run.
This table summarises which car loan works best (based on this article on the best car loans in Singapore).
Car Insurance |
Best For |
DBS Used Car Loan |
Used cars – Best rate: 1.99% |
OCBC |
New cars: – Most affordable car loan for new cars at 2.28% p.a. – Quick approvals – Get a car loan approved before or after you decide on your car of choice |
Motorist |
COE renewal loans – Free pre-COE inspection – Guarantees to find the lowest interest rate in Singapore (gives you S$50 if you find a better rate) |
The next table summarises car loan offerings based on a car loan for S$70,000 over a five-year period.
Car Loan |
Interest Rate |
Tenure |
Maximum Principal (% of car price) |
Monthly Instalment |
Total Cost |
DBS Used Car Loan |
1.99% |
1 to 7 years |
60% or 70% |
S$1,283 |
S$6,965 |
DBS New Car Loan |
2.28% |
1 to 7 years |
60% or 70% |
S$1,329 |
S$9,730 |
Hong Leong Finance Used Car Loan |
2.78% |
1 to 7 years |
60% or 70% |
S$1,329 |
S$9,730 |
Hong Leong Finance New Car Loan |
2.48% |
1 to 7 years |
60% or 70% |
S$1,312 |
S$8,680 |
Maybank New Car Loan |
2.78% |
1 to 5 years |
60% or 70% |
S$1,329 |
S$9,730 |
OCBC Used Car Financing |
2.28% |
1 to 7 years |
60% or 70% |
S$1,329 |
S$9,730 |
Tokyo Century |
2.78% |
1 to 7 years |
60% or 70% |
S$1,329 |
S$9,730 |
Sing Investments & Finance |
2.78% |
1 to 7 years |
60% or 70% |
S$1,329 |
S$9,730 |
Singapura Finance |
2.99% |
1 to 7 years |
60% |
S$1,341 |
S$10,465 |
Standard Chartered |
2.78% |
1 to 7 years |
60% or 70% |
Not available |
Not available |
UOB Used Car Loan |
2.98% |
1 to 7 years |
60% or 70% |
S$1,341 |
S$10,430 |
UOB New Car Loan |
2.68% |
1 to 7 years |
60% or 70% |
S$1,323 |
S$9,380 |
Source: ValueChampion (All details mentioned above are correct at the time of publishing and subject to change.)
Related Story: Best Cheap Car Insurance for Young Inexperienced Drivers 2023
#4 Maximise saving by carpooling
Carpooling isn’t just about saving money; it’s a win for everyone. Less traffic means less pollution. You make friends and are able to make up for some of the costs of using your car, like petrol and maintenance. It’s a smart move for your wallet and the planet.
There are three apps you can use for carpooling if you’re looking for carpool buddies: Grab Hitch, Ryde, and SWAT Mobility.
#5 Use credit cards that offer petrol rebates or benefits
As petrol costs are high, the best way to navigate it would be with a credit card offering petrol discounts or rebates. The table below showcases a suite of credit cards that offer you just that. Do note that the related terms and conditions apply.
Credit Card |
Petrol Benefits |
UOB One |
Fuel savings of up to
|
Citi Cash Back |
|
POSB Everyday |
Fuel savings of up to 20.1% + 2% at SPC |
Citi SMRT |
Fuel savings of up to 20.88% at Esso and Shell |
OCBC 365 |
Fuel savings of up to
|
HSBC Revolution |
Fuel savings of up to
|
HSBC Visa Platinum |
Fuel savings of up to
|
Maybank Horizon Visa Signature |
|
American Express Singapore Airlines Krisflyer |
Fuel savings of up to 21% at SPC |
CIMB Platinum MasterCard |
Up to 10% cashback on transport and petrol (capped at S$20 per month) |
American Express True Cashback |
Fuel savings of up to 21% at SPC |
Standard Chartered Simply Cash |
Fuel savings of up to 23.7% at Caltex (up to 31 December 2023) |
HSBC Advance |
Fuel savings of up to
|
Citi Prestige MasterCard |
Fuel savings of up to 14% with Esso and Shell |
OCBC Frank Card |
Fuel savings of up to
|
Citi Rewards |
Fuel savings of up to 14% at Esso and Shell |
OCBC Titanium |
Fuel savings of up to
|
Citi Lazada |
Fuel savings of up to 14% at Esso and Shell |
DBS Esso Platinum |
Fuel savings of up to 21.2% at Esso |
*Source: ValueChampion (All promotions mentioned above are subject to change.)
With these five tips, you now have a clearer picture of how your strategic decisions — from picking the right car insurance plan to getting the right petrol cashback credit card — can help you save money.
Remember, flexibility is key. Explore alternative vehicle choices and always stay updated on car-related interest rates and COE prices. You’ll be able to pave the way to successfully owning a car in Singapore. Happy car-hunting!
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