Compared to a new car, used cars in Singapore are always cheaper. Depending on the needs of each individual, a car may be essential in making sure life is easier. Read on the guide below to find out what are the processes!
Plan your budget
Buying a used car requires large amount of money, and planning is essential to determine the type of car that you want to purchase. Payments are split into two, downpayment and monthly instalments. Downpayment is the initial payment of the car, which is commonly 30% of the selling price. The remaining payment will be split by monthly instalments, which you will loan from your preferred bank depending on the interest rate. The higher the downpayment, the lower the loan, therefore overall you will save more as interest paid is lower.
Not forgetting the cost of maintaining the car, parking fees, fuel, road tax which has to be paid constantly in order to continue driving the car. These expenses must be added to the monthly instalment, and thus the overall expenses for the car.
Look for Used Cars
There are many ways to look for Used Cars in Singapore. Platforms such as Carousel app, sgcarmart or SGCarTrade. These platforms provide used cars from dealers or even direct sellers. Depending on your budget and wants, they provide all types of cars that may fulfil your requirements.
If your main concern is price, buying from direct sellers tend to be cheaper than buying from dealers. Dealers have to make a living from earning car transactions, while often direct sellers will be contented just by selling their car without losing money.
However, buying from dealers have their advantages, they can link you up to bank loans, insurances, and repair defects so that the car is in good condition after selling to you. These saves time from handling documentations on your own when you purchase car from direct sellers.
Once you know where to look, it is time to choose the car that you want. There are considerations that you need to think of, such as the size, speed, features and colour. If you have a large family, get a bigger sized car such as MPVs to ferry them around when required. If the distance between your home and workplace is far, get a car that is fuel efficient. Or if you prefer cars that are sporty, get a sports car that fits your likes!
Once you have the selected the car you want, it is time to negotiate the price lower, or even ask for package deals from dealers! Prices are normally negotiable, so seller price always factor in a small margin where buyer will negotiate. Do market research, know the market price of the particular car that you want, look for the lowest price, and see if you can get lower than that. At most times, dealer will sell it to you. Negotiate for package deals, such as free servicing for the first 3 times, or if there any freebies that you may need such as in car camera.
Bank loan and insurance.
In order to get the best interest rates, compare bank loans from local banks, calculate the total amount of interests that needs to be paid before deciding the bank. At the same time, source for multiple insurance companies, compare the coverage differences and not just the price only. Choose the best one suitable for yourself!
Once everything is completed, the last thing to do will be transferring of vehicle ownership. Transferring has been made easy just by logging in to your Singpass. A complete guide in onemotoring is provided. Once completed, enjoy driving your used car in Singapore!