Singapore is known for being one of the most expensive cities in the world to own a car. Accompanied by the high cost of Certificate of Entitlement (COE), many Singaporeans are opting to buy second hand cars instead of brand new cars.
However, prospective buyers may be apprehensive about the quality of second hand cars, as well as how to go about choosing the best car that suits their needs.
Together with Dew Motoring, one of the leading car dealers in Singapore, UCARS brings you a complete guide to help you make the right decision when buying your next car.
What Types of Second Hand Cars Are There?
There are two types of second hand cars in Singapore that buyers can choose from – COE cars and Preferential Additional Registration Fee (PARF) cars. As a general rule of thumb, COE cars are more budget-friendly compared to PARF cars.
COE cars are vehicles that have been renewed after their original 10-year COE has expired. Usually, COE cars are significantly cheaper than PARF cars, as most of its cost comes from the Prevailing Quota Premium (PQP) that the car was renewed at. Also, since these cars are generally of older models, its Open Market Value (OMV) would have depreciated significantly compared to a PARF car. The downpayment for COE cars is therefore notably lesser than PARF cars.
In contrast, PARF cars are vehicles that are still under their original 10-year COE and thus, under 10 years of age. They are brand new, and are typically of newer models from most car makes. One should note that while most PARF cars have higher overhead cost, there are potential long-run savings that can be made when we consider the overall cost of different second hand cars.
Which brings us to the next section.
Should I Get A PARF or COE Car?
Depending on the type of second hand car, the model and year of COE expiry, the price of second hand cars can range from as low as $20,000 to as much as $200,000! Nevertheless, we have summarised the considerations to make when making your decision in the table below.
|PARF Car||COE Car|
|More expensive than COE cars||Cheaper than PARF cars|
|Eligible for PARF and COE rebates||Only eligible for COE rebate|
|Potentially lower maintenance costs||Potentially higher maintenance costs|
|Lower road tax||Higher road tax|
|Possibly lower car insurance premiums||Higher car insurance premiums|
How Do You Choose The Right Second Hand Car?
After you have decided whether you wish to get a PARF or COE car, it comes down to choosing the right car. What are the things that buyers should look for when viewing a car?
Check The Service History
The service history of a car provides information about what has been done over the years of ownership. There are a few things that one should be taken into consideration when looking through the records.
A car’s mileage gives a rough gauge of the car’s overall condition. A car that has higher mileage will come at a lower cost, but will likely require more maintenance because of wear and tear.
Previous Repair and Servicing Works
Look for the types of repair works that have been done on the car. If there are certain things that have not undergone servicing, check for its condition. Some important things to look out for are:
- Oil Filter and Air Filter
- Oil Change
- Brake Pads
- Refill of Transmission Fluid
- Condition of Battery
- Refill of Brake Fluid
- Condition of Charging System
Check the Panel Gaps and Paint Job of the Car’s Exterior
Besides checking for the surface level dents and scratches, be sure to look out for misalignments in the panel gaps of the car, as well as any uneven surfaces of the car paint. These are key indicators of a car’s accident history.
Reputability of Dealer
Though checking for a car’s condition is crucial, the most important thing you want to ensure is that your choice of dealer is reputable and trustworthy. The best dealers always prioritise their customer’s needs first, and are always upfront about the condition of their cars. Doing a thorough search on the dealer’s reviews online, or visiting websites that offer only the most certified dealers in Singapore are extremely good ways for you to choose the dealer that fits your needs best.
“At Dew Motoring, we believe that delivering exceptional customer service is paramount to our business’s success. As a car enthusiast who has been in the automotive industry for almost a decade, I can address the concerns of my customers and assist them in making sound decisions based on my expertise and experience.” said Darick Oh, the founder of Dew Motoring.
Whether it is a PARF or COE car, we believe that choosing the right dealer for you is the best way to ensure that you get your second hand car without having to second guess its condition.
UCARS brings consumers only the most well-established dealers such as Dew Motoring, a company that has been widely recognised in Singapore for its reliability and customer-oriented services. They offer a wide range of second hand PARF and COE cars for you to choose from, regardless of your budget.
“I started off working as a broker in a family-owned business back in 2012 and have taken a huge interest in the automotive industry ever since. It is a rewarding job that has given me great satisfaction when I am able to assist my customer in the end-to-end process of purchasing their vehicle. Opening Dew Motoring with my partner was the best decision I made and I hope our business continues to thrive on growth and expansion.” – Darick Oh, Founder of Dew Motoring
To find out more about Dew Motoring, visit their website (Coming soon!) or join the conversation on their social media on Facebook.
Showroom: 18 Kaki Bukit Road 3, #02-12, Entrepreneur Business Centre, Singapore 415978
Business Hours: Open Daily, 9:00am – 9:00pm
Contact Number: +65 8695 8000
Email: [email protected]
In conformity with the nationwide circuit breaker measures implemented by the government, Dew Motoring is temporarily closed till 1 June 2020*. You can still browse their finest collection of second-hand cars at your fingertips on UCARS or schedule a live video call session with their sales consultant here.