Guide to Buying Pre-owned Car
Car ownership in Singapore does entail hefty costs. These include but are not limited to buying a certificate of entitlement (COE), paying for petrol, and bringing your car to a workshop for maintenance.
Thankfully, you have another option – and that is, pre owned cars.
From vehicles with automatic and manual transmission, Singapore’s used car scene is thriving with options from reliable and recommended dealers.
What is it like Owning a Pre-owned Car?
While a 2nd hand car might not have that new car smell, there are plenty of advantages to getting one over a new and unused one. For instance, it’s a lot more economical to buy a second hand car in Singapore. In fact, used cars can cost significantly less than a new car!
More importantly, they are a more sensible option for first-time buyers who intend to upgrade down the road.
Not to mention, there is less waiting time involved when acquiring a used vehicle. When buying a new vehicle, you need to go through the bidding process depending on what COE package you use and wait for new stocks to arrive if the model you want is out of stock. Used vehicles are ready for purchase and you can drive in it once you settle payment.
FAQs about Second Hand Cars in SG
1. What do the terms ARF and PARF mean?
During your search for a 2nd hand car, you might come across the acronyms “ARF” and “PARF”. But what exactly do they mean and how do you calculate them?
Here are some quick definitions:
- ARF stands for Additional Registration Fee that is part of the costs of buying a used car. It is a tax imposed once a vehicle is registered and is calculated based on a percentage of the open market value (OMV) of the car
- PARF rebates, also known as Preferential Additional Registration Fee rebates, are for cars that below 10 years old. The newer your car, the more value it holds and the more PARF rebates entitled. To calculate your PARF rebate, multiply the ARF by the percentage based on the age of your car. You can also assess the paper value of your used car with an online calculator
2. Are second hand cars worth it?
Ultimately, this depends on your long-term goals as well as condition and value of the car.
Used cars typically have the bulk of the depreciation absorbed by the initial owner and tend to be more value-for-money relative to a new one. Do take note, however, that maintenance and repairs required might bring these costs up.
3. What happens if I find defects on the car?
While it is true that the likelihood of defects are higher in used cars than new ones, there is a lemon law which protects buyers from this.
Under Singapore’s lemon law, businesses are obliged to replace, repair, reduce the price or provide a refund for a defect good. Beyond used cars, this law applies to electronics and apparel. But do note that the law does not apply if you had damaged the car on your own. It might be inconvenient to deal with defect cars, so do your own research for trusted 2nd hand car dealers in Singapore and arrange a car evaluation or check before purchase.