This will be a follow-up post from the previous post of buying a new car. As we have received customers enquiries regarding buying a used car in Singapore. Buying used car in Singapore is said to be relatively economical compared to a new car. You need to check certain basic parameters before making the purchase. The first among them is the age of the car. This is effectively the first registration year.


The other parameters are the number of ownership (number of people who owned the car before you), average maintenance cost, engine capacity, number of servicing for the engine and other parts, pending loans on the car, depreciation value from the first registration date, fuel efficiency, taxes etc.

Used Car Registration Year

The depreciation value of the used car depends on the age of the car. If your car is more than 10 years old the depreciation value will be more, making the car cheaper. The restriction for importing used cars is less than 3 years. For which the surcharge will be S$10K. However, no such restrictions exist if you buy the used car within Singapore.

Used Car Taxes and Fees

All the taxes including, GST, road tax, excise duty, COE, insurance and additional registration fee are applicable for the used car. In fact, the additional road tax increases by 10% as the used car gets older by one year after 10 years. It is 10% for a 10-year-old car, 20% for 11 years and so on.

pexels-photo-125514The mainly notable benefit for you is the original market value as it depreciates every year. If the used car s less than 10 years old with valid COE, you need to pay an additional transfer fee of 2% to the government of Singapore.

Used Car Having Outstanding Loan

The outstanding loan will be transferred to your name once you buy such a used car from the previous owner.  Then you can minus the loan amount and pay the balance to the owner according to the depreciated market value.

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Used Car Documents

Used car identification documents along with registration details are important for you. The other original documents you need to procure from the previous car owner are the insurance documents, vehicle inspection certificate, ownership transfer forms, road tax documents, COE certificates and other license documents are also necessary.

Used Car Working Condition

You can check the working condition of the used car by taking it for a test drive. Make sure you have an expert car mechanic to accompany you during the drive. He will be able to observe, analyze and certify the car’s working condition. It is better if the mechanic is government authorized engineer. His certification and defect analysis will be considered as valid in case you have any complaints in the future.

  • Fuel Consumption: – Check the fuel consumption per kilometre on standard road conditions. It might vary within the city limits and the freeways outside the city.
  • Maintenance History: – The maintenance history of the various parts including eh engine will tell you lot about its health at the time of purchase. Even this parameter is certified by an expert auto mechanic.
  • Number of Ownerships: – Choose a car which has had minimum number of previous ownership. Such a car might be relatively expensive compared to the other type with more number of ownership. For example, 10-year-old used car with single ownership is better than 6-year-old car with 3 or more ownership. This is, however, a relative factor which might change for each car.
  • Engine Capacity: – The engine capacity in HP and CC are the two important factors you need to consider while buying a used car. If you want more power and load capacity over fuel consumption you can naturally choose a car with higher capacity.

Lemon Law for Used cars in Singapore

Under the lemon law for used cars in Singapore, you can claim for repair costs, refund or replacement of the car when the defects are discovered within the first six months of purchase. Then the liability will be on the previous owner/dealer to rectify the defects, refund or replace the car. If you discover the defects after six months it is your responsibility to prove the existence of the defects at the time of purchase. Hence you need to get the pre-owned car well scanned by independent car experts before taking a decision on buying.

Used Car Aesthetics

 Check the car interiors including the dashboard, air conditioning, heating and media playing systems. The car seat comfort and luxury levels are to be checked by an expert before taking a decision on buying. If the condition of any accessories is not healthy you can ask the previous owner to repair or replace them before buying.


Finding all these too daunting? Our experienced service officer is just a call away. Contact Car Source today.