Why Buying a Used Car Makes Sense Once COE Hits $45,000
Let’s face it—when the COE for Category A vehicles climbs to $45,000, splurging on a brand‑new ride feels like a crazy gamble. Instead, why not go for a used car? It’s easier on your wallet and, honestly, on your sanity.
Stop Making These 5 Common Mistakes
- Underestimating the Down‑Payment Advantage: Think a used car is still pricey? Think again. Take a used Mazda 3—yours could cost around $38,000 instead of a fresh new one at roughly $95,888. That’s a whopping $57,888 savings!
- Ignoring Depreciation Benefits: The first year’s slump takes about 30% from a car’s value. That means most of the loss has already been absorbed by the previous owner, giving you a sweet deal.
- Worrying About COE Bidding: New cars mean months of waiting for the COE auction to settle. When you buy used, you sidestep that whole headache.
- Overlooking Insurance Costs: Used cars often come with lower premiums because parts and service options are more plentiful for older models.
- Missing the “Buy Now, Pay Later” Style: With a used car, you get a larger drop‑in payment to start and can finish the financing over a realistic period—no long‑term commitment, no perpetual costs.
Bottom line: a used car can pull a few financial tricks that keep your budget humming. Take advantage, avoid the mishaps, and get behind the wheel without breaking the bank.
Failing to check if it is a COE or PARF car
There is a huge difference between a COE and PARF car. Depending on which you choose, it will affect the car’s value when you decide to sell or scrap it.
For those unaware, a PARF car is aged below 10 years old, which makes it eligible for both COE and PARF rebates upon deregistration. The PARF rebate can be calculated via the table above. This rebate allows you to recoup the Additional Registration Fee (ARF), which was already factored into the price of the car when it was first purchased.
On the other hand, a COE car has passed the 10-year mark, and upon deregistration, you will be able to recover the unused portion of the COE. The COE rebate can be calculated using the formula below:
COE rebate = (QP paid x unused period of COE left) / 120 months (10-years of COE)
When it comes to used cars, COE cars are generally cheaper to own than PARF cars. Because of its age, buyers often have more leeway to negotiate a better price with the seller.
However, do note that COE cars, although cheaper than PARF cars, tend to incur higher maintenance costs and road tax than their PARF counterparts.
Choosing a less than ideal loan to finance your used car
Buying a Car on Credit? Let’s Talk Numbers (and Why It Might Not Be the Smartest Move)
When you’re squeezing those monthly payments, the temptation to take a longer‑term loan often looks like a lifesaver. But the trade‑off? You’ll pay way more in interest over the life of the loan.
Crunching the Numbers
| Loan Amount | Interest Rate | 5‑Year Plan | 7‑Year Plan |
| $40,000 | 2.68% | $45,360 total | $756 per month | $47,504 total | $566 per month |
| Interest Paid: 5‑Year = $5,360, 7‑Year = $7,504 – $2,144 more on the longer loan. | |||
Shorter loans may feel easier on your bank account each month, but the overall cost climbs faster the longer you borrow.
Why Paying Cash Is Still the King
- No interest drama: You own the car outright from day one.
- Saves future hassle: No installment tracking, no missed payments.
- Good credit vibes: Zero loan to juggle, which keeps your credit score as tight as a drum.
When Cash Isn’t an Option
Feel the pinch? Here’s what to do:
- Snap a shorter loan term: The fewer years, the less interest you’ll chew.
- Keep an eye on your credit: Every loan leaves a mark. A good score opens doors for future loans—like a personal loan, HDB, or your student loan.
- Don’t let the dealer’s lunch budget influence you: Dealers earn a fat commission when you pick their loan offer. Compare with a bank’s package; surprise, some banks beat them.
Final Word
It’s tempting to roll out for that sweet “in‑house” deal and think you’re saving money. But do a quick audit: interest rates, loan length, and how the payment fits into your monthly budget. And remember—every missed installment is just a tiny rock that can eventually wipe out the whole mountain of credit you’re trying to build. Take the plunge wisely, and keep your finances happy.
Not asking for the Car’s history and maintenance records
Unveiling the Secrets of Your Future Ride
Multiple Past Owners? That’s a Red Flag?
Ever seen a car with more names on its plate than a celebrity’s fan list? A long roll‑call of previous owners can hint that the vehicle has worn out its charm.
Get the Good‑Or‑Bad Deal: Maintenance Records
- Proof of TLC: A tidy paper trail means the car was loving the porcelain and it gets the love back.
- Major Repairs? Yikes! Fixes to the chassis, engine, or brakes could mean the car’s been through a rough patch.
Skeptical of the Dealer’s “All Fine” Claim?
When the salesman insists the ride is pristine despite a flashy past, ask for the real evidence: the maintenance logs. If they don’t have them, borrow a magnifying glass and dig deeper.
Key Repairs That Sound Like a Warning Alarm
- Chassis & Suspension: Think of it as the backbone—if it’s been patched, the ride might wobble.
- Gearbox, Engine & Brakes: The life‑bottles. Fixes in these areas can bleed your wallet later.
Stay Ahead of Future Repair Bills—Choose Wisely
To dodge a costly pit‑stop in the future, steer away from vehicles with a messy maintenance history or a parade of previous owners. Betting on a cleaner background pays off in more miles and fewer “accident” payments.
Failing to go for a test drive & get a car evaluation
Don’t Let the Dealer Beat Your Wheels!
1. The Test‑Drive: Your Road Test
Nothing beats a good ride‑by‑ride to make sense of the car’s feelings. Auto sellers love to brag, but a test drive tells you whether the brakes behave like a dragon’s snack, the engine sings a steady tune or the steering is a fickle friend.
If the dealer lurks you away from the wheel, maybe they’ve got a secret snag they wish you didn’t see. In that case, pause and watch out. Play Detective, not buyer.
2. Grab a Full Car Eval Report
- Ask for one! If the dealer won’t hand over a detailed report, insist. A single inspection is like a quick glance; a full evaluation is your full‑stack audit.
- Multiple hours of tests down the SAFE checklist from CASE give you the low‑down—defects, quirks, and the “hidden gems” that others might leave on the lot.
3. Sharpen the Deal: Fix & Trade‑Down
Once you’ve received the report, you’re armed. If they spot anything fishy, demand that the dealer polish it up before you sign the papers. And here’s a trick: once the bumps are smoothed out, ask for a price cut—just because they’ve turned the car from “meh” to “meh, but better.”
4. Final Words
Picture this: the car is your future daily ride. Treat it like a best friend. Every test drive, every report, every repair is a step to a smoother, happier journey. Don’t skip the process, or you’ll end up with a car that’s less “road‑ready” and more “road‑mess.”
Not purchasing a comprehensive car insurance plan
Ready to Get Your Car Covered Like a Pro?
Shopping for a used car is fun—just don’t forget the insurance that keeps you and your wheels safe if destiny throws a snag in your lane. Here’s the scoop: If you’re looking for coverage that’s as solid as your favorite driving playlist, FWD Car Insurance is the go‑to choice.
Why FWD Stands Out
- 98.9% of claims approved in 2019‑2020—customers breathe easy knowing they’ll be taken care of.
- 50% lifetime No‑Claims Discount (NCD) guarantee—keep those premiums low while you keep the wheel turning.
- 24‑hour roadside assistance for every type of breakdown—accident or not, you’re never left stranded.
Repaired and Roaming
Hit the road, get hit, and have to send your car to the shop? No sweat. You’ll get a daily transport allowance of up to $80 for up to 10 days while your car gets a makeover. Plus, if you choose one of FWD’s premium workshops (Classic, Executive, or Prestige), you’ll enjoy an extended workmanship defects warranty—a little extra peace of mind with a $50K protection in case of tragedy.
Going Above and Beyond?
- ⏴ The Executive and Prestige plans let you skip the “I’ll be waiting at the shop” guilt. You get a courtesy car for up to three months if your ride gets permanently out of commission.
- Want someone else to drive your car? That’s a win! Executive and Prestige automatically cover friends and family—no extra paperwork needed. Need it for a Classic plan? Add it on.
Family, Fun, and Safety
Married couples, this one’s for you: add a Family Personal Accident plan for just $53.50 a year. Your fam stays protected while you’re on the road.
- Daily $100 payout for up to 90 days if you or a family member gets hospitalised after an accident.
- $50,000 payout in the case of death or total permanent disability.
Take the Plunge
Don’t wait for a pothole to punch a hole in your budget. Head straight to FWD’s website, explore the plans, and get covered today—because your car deserves the best, and so do you.
Conclusion
Buying a Used Car—Your One‑Way Ticket to Smart Shopping
When you’re on the hunt for a pre‑owned ride, give yourself the best chance to win a solid bargain. Think of it like a detective game: you’ve got to investigate, compare, and ask the right questions before you hand over the cash.
Step 1: Do Your Homework
- Compare prices from a handful of listings—don’t stop at the first sale.
- Ask the seller about the car’s history: accidents, service, and why it’s sold.
- Check the background check for liens or outstanding fees.
Step 2: Test‑Drive the Beast
Never skip the test drive. You’re not just checking if it starts; you’re looking for that smooth acceleration, quiet cabin, and how the brakes feel. If something feels off, you’ve got a chance to pull back before you’re stuck with a glitchy steed.
Step 3: Pull the Papers
- Ask for the maintenance records—you want to know who’s been feeding the car and how well.
- Get a car evaluation report done by a reputable mechanic. This is your safety net.
- If the paperwork looks fishy, move on before you commit.
Step 4: Think of the Long‑Term
Remember, your car isn’t just a mode of transport; it’s an investment in your daily life. Don’t feel pressured to buy if you’re not 100% sure the vehicle fits your needs or budget. Buyer’s remorse is real and nasty.
Step 5: Protect Yourself
- Wrap your new partner in trustworthy insurance. Accidents happen, and breakdowns happen, but you can’t afford to pay a fortune for repairs.
- Read the fine print—know what’s covered and what isn’t.
Curious About the COE Factor?
If you’re in a region where Certificates of Entitlement (COE) play a role, consider how they can impact resale value of your used car. Understanding this can save you a bundle.
In the end, the car buy‑decision is all yours. Take your time, keep your head cool, and enjoy the ride. And remember: once you’ve got that perfect car, the best part is the memories you’ll create together. Happy hunting!
