First-Timers Guide to Buying a Car 
From Singapore Hotels & Singapore Lifestyle
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A record crop of Certificate of Entitlements (COEs) has resulted in premiums hovering just above S$10,000, with Category B (above 1,600cc) diving to an astouding S$9,001 in December 2005. And COE prices are expected to remain low in the year ahead in 2006. Together with lower car taxes, a new car has become more accessible than any other time in recent memory.
Do Your Maths Properly
But there are thorns to any rose. The value of existing cars has sunk further. And first-time buyers may not be aware of the entire cost of owning a car (as opposed to buying one). There are also those who borrow to the hilt, even resorting to bridging loans to help them pay off their existing borrowings.
Think carefully before taking the plunge. The water may be deeper than you think. Being pulled under by a tsunami of debts is a real possibility if you don't do your maths.
For instance, with the high loans and lower scrap rebates accorded by a new car tax formula, buyers today may well have to keep their cars for seven years or more to "break even". Unloading their cars sooner will mean hefty losses.
All this means you will have to be extra careful in your choice of a car. You need to ask yourself if the appearance and performance will keep you happy for seven years. Do not succumb to faddish designs.
Financing the Purchase
An important rule of thumb: "Buy within your means!" Understandably, there are lots of cheap lots out there to finance your purchase. However, don't accumulate debt which you think you will find difficulty in servicing. Consider also if you have taken loans for other uses, eg. to finance the mortgage of your property.
References
- "Good Buy, 2005", Pg.4, Life! Motoring, The Straits Times, Saturday, December 31, 2005
