Travel & transport @ ecitizen

Owning and maintaining a car is an especially big-ticket cost in Singapore. So before you make the decision and commit the finances, invest the time to find out more about buying that new car or motorcycle so that you can make an informed decision.

While the option of buying a used vehicle has its benefits, it also has certain disadvantages such as potentially higher maintenance and expired warranty coverage. So be sure to find out as much as you can about a used vehicle and make an informed decision before signing on the dotted line.

Once you have decided on a used vehicle that is suitable to your needs, and are ready to make the purchase, there are certain procedures to note. Learn more about these procedures to ensure a smooth transaction.

Second hand doesn't always have to mean second best. If you know what to look out for, you could get a used car that is just as good as a new one for only a fraction of the price. We give you some advice how.

Plan your purchase

The basic principles on what to consider when buying a used car are the same as when buying a new car.

• Think about why you want a car, how it will be used and how much you can afford.
• Make a list of car models you are interested in and research each one.
• Read reviews, consumer reports and reliability ratings.
• Look for information on gas consumption and maintenance costs.
• Narrow down your options based on your requirements to a few models.

Check the car

The biggest risk in buying a used car is getting one that is in a poor condition even though it looks fine on the outside; so before you buy a used car do the following:

• Ask to see the car's service records for an idea of what previous problems the car has had. If records are not available from the dealer, go online and order a used car history report using the Vehicle Identification Number (VIN).
• Always physically check the car for yourself, or, if you know someone who is knowledgeable about cars, ask for help.
• Take the car to a mechanic you trust for an inspection and if possible get him to test drive the car as well.

Check the paperwork

• Before you close the deal, read the contract and all related documents carefully. Pay special attention to the fine print.
• Confirm that all the terms and conditions the salesman promised you are included in the contract.
• You should also check the LTA's system records to ensure that the information provided by the salesman is genuine.
• Make sure you understand all the terms and charges made in the contract. If you are unclear about anything, clarify them with the salesman.
• The salesman should guide you through the procedure of transferring a vehicle but it would be advisable to familiarise yourself with it as well so you know your rights and responsibilities.

The Certificate of Entitlement (COE) is designed to better manage the number of vehicles on our roads so that traffic remains smooth flowing. Potential car owners are required to bid for the right to own a car. Obtaining a COE entitles you to own a vehicle for 10 years from the date of registering it.

A limited number of COEs are released for bidding on the first and third Monday of each month and the bidding exercise typically last three days. Find out how to bid for a COE.

You can bid for a vehicle registration number to register a newly purchased vehicle or to replace the registration number of an existing one. Bids are placed during one of two bidding exercises, the main bidding exercise and the weekly bidding exercise. Find out more about the process of bidding for a vehicle registration number.

Buying a car or motorcycle in Singapore requires a large financial commitment. Few people plan to, or can afford to make a full payment without some form of financial assistance. Find out more about how to finance a vehicle purchase here.

In addition to the costs related to the purchase of a vehicle, you should also be aware of the costs to upkeep your vehicle on the road. One of these recurring costs is your annual road tax. Find out how to calculate your annual road tax here so that you will have a more accurate financial perspective of the overall costs of vehicle ownership.