The Costs That Go Into A Car And How A Car Loan Can Help You Fund Your Car Purchase Singapore 2023

CreditMaster February 28, 2023

The Costs That Go Into A Car And How A Car Loan Can Help You Fund Your Car Purchase Singapore 2023

We all know how expensive it is to own a car in Singapore. The cost of owning a car in Singapore goes way beyond its purchase price. It includes things such as registration fees, taxes, insurance premiums, and maintenance costs.

To make things easier for you, we have listed down the various costs that go into the price of a car so that you are well aware and prepared to make the financial commitment towards owning a car.

What Are The Costs That I Should Consider Before Getting A Car?

  • Purchase Price
  • Certificate Of Entitlement (COE)
  • Registration Fees & Taxes
  • Insurance Premiums
  • Road Tax
  • Carbon Emissions-Based Vehicle Scheme (CEVS)
  • Servicing & Maintenance Costs
  • Miscellaneous Costs

All these above pointers that you have to factor in before purchasing a car will easily bring the total cost of a car to about $110,000. This is definitely not money that any of us have just lying around. During times like these, it might be wise to consider looking for alternative sources of funding to help you in your purchase of your car.

Why Is It So Expensive To Own A Car In Singapore?

According to a global congestion index by TomTom, a leading navigation firm, Singapore is the 55th most congested city in the world.

The Land Transport Authority (LTA) has embarked on an ambitious project to reduce the number of vehicles on Singapore roads, citing land scarcity and an upgraded public transport system.

This is informed by the fact that 12% of Singapore’s land mass is already occupied by roads and the government cannot afford to allocate more space for roads. LTA has introduced a cap that targets private vehicles and motorcycles, but not buses and goods vehicles in the form of the Certificate of Entitlement (COE).

The aforementioned points also play a huge role in adding up to the cost of a car. Added to this, you will also need to factor in other costs such as parking, petrol, Electronic Road Pricing (ERP) and inspection certificate costs.

If you have trouble financing your car purchase, Credit Master is here to help.

How Credit Master Can Help You Finance Your Car Purchase

At Credit Master, we understand that very few individuals have the capacity to purchase a brand new car without the help of a car loan. This is why we have included a specifically tailored car loan to help you finance the purchase of your car.

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    Drop us a message and we will get back to you shortly.

    Compared to borrowing from banks and other traditional lending institutions, Credit Master offers you with a faster and much less stringent application process. All you have to do is fill in our online application form to begin the loan process.

    This way, we ensure that you will be able to receive the necessary funds as soon as possible, so that you will be able to purchase your car.

    Over the years, we have helped many Singaporeans and foreigners who run into problems when it comes to their finances. As a legally licensed money lender, our flexible loans with a quick approval process have provided our customers with a sense of stability and trust.

    How Do I Know If I’ll Be Able To Take Out A Car Loan?


    To be able to qualify for a loan with Credit Master, all you need to do is fulfill the following three points below:

    1. Be a Singaporeans Citizen or Permanent Resident of Singapore at the time of your loan application. For foreigners, you must be able to present your passport or have proof of your employment pass.
    2. Be above 21 years of age
    3. Be permanently employed with proof of your income (pay slips, bank statements, etc.)

    You will also have to bring in the following documents:

    1. Copy of your NRIC
    2. Proof of your residential address

    Is It Worthwhile To Get A Car In Singapore?

    After reading the above points, you might now be having second thoughts about getting a car. The cost of the car might be a huge deterrent factor. This, coupled with the issue of applying for a loan might be tricky for some.

    However, here are a list of reasons why it pays to own a car in Singapore:

    1. Owning a car offers flexibility that you cannot get with car rental. Car rental terms and conditions are often restrictive. As an example, you can only drive in Singapore only on a rental car and you can only name 2 drivers.

    2. If you will be driving into Malaysia, buying a car is the best option since you will pay lower insurance excess. With a car rental, insurance excesses double up when you cross the border to Malaysia.

    3. You can sell your car any time. However, if you have leased a car, you will incur a loss by paying for remaining months if you terminate the contract early.

    4.  Even with the convenience of taxis, Uber and GrabCar, there are still car safety issues for kids in Taxis. Unless you will be in the Uber to pick your kid from school, it is not safe for you to leave the fate of your child to a stranger.

    5. If you have young kids, you will need to install infant/child car seats on taxis or Uber/GrabCar for your trips. Installing car seats in car after car is not convenient and it is common to see parents getting complacent.

    6. Older kids who are not using school buses can use public transport in Singapore, but this is not an option for younger kids since they could get lost or worse.

    7. With your own car, insurance excess is lower at between $600 and $1000. With a car rental, insurance excess is much higher, usually above $3000.

    8. With your own car, you do not have to wait under the sun for public transport or to squeeze in the MRT. A personal car is air conditioned and has comfortable seats as well as other features meant to increase comfort.

    9. If you have a mobile lifestyle (such as a salesman), having your own car is inevitable because bus and MRT schedules would eat into your time.

    10. Owning your own car gives you unparalleled personal independence. You can go wherever you want, whenever you want, and stay for whatever time you want. Be it work, shopping, hobbies, or other personal interests, you will not be worried about your ride home.

    11. In case of a medical emergency, public transport is not feasible. Some medical emergencies require immediate attention. With your own car, you will be able to leave immediately for the hospital. This increases the chances of survival of your loved one. However, some medical emergencies such as slip & fall accidents require an ambulance, so, you do not exacerbate the problem when picking the patient up.

    12. If you are stuck in traffic for several hours each day, it makes sense to have your own vehicle because you will be able to kill time how you see fit. On the other hand, you will be restricted on what you can do with public transport. With your own vehicle, you can listen to music, talk to a friend, and even sing out loud.

    13. Driving your own car can be a wonderful experience – it is not just about getting from point A to point B. With your own car, you can pick the most scenic routes. Although Singapore is a city-state, there is still a lot to see and do.

    14. You will reach your destination faster with a personal car, be it your work or your kids’ school. This reduces stress for yourself and your kids. Public transportation is extremely stressful since you are always worried about remembering the time and missing the bus. Buses make several stops, plus the waiting time means a longer journey. There is also considerable waiting time with taxis.

    Applying For A Car Loan With Credit Master


    We understand the urgency that comes with applying for a car loan. This is why we have an online application form to expedite the entire loan process. After you’ve filled up the application form, our loan officer will be in contact with you shortly.

    Before paying a visit to our office, ensure that you get all the necessary documentations ready. This is so that you won’t run into any hiccups, especially during the tail end of the loan application process. All things being equal, our loan officers will strive to ensure that the loan process is as quick and smooth as possible.

    If you still have any queries, you can always have a chat with us to find out more about our car loan!


    At CreditMaster, we believe in building long-term relationships with our clients. Our team of experienced professionals is always ready to provide personalised financial advice and assistance to ensure that our clients make informed decisions. We understand that each client's situation is unique, and we strive to tailor our services to meet their specific needs.

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