Buying or Renting a Car in Singapore Worth It?



Liburan Seru ~ When you are in Singapore, you will realise that getting around this island nation is easy and convenient because of its timely and efficient public transportation. However, some people would love to drive their cars because it gives them more options to travel rather than having the hassle of sharing space with other people. The good thing about driving on your car is that it is more convenient and saves you a lot of time.


Now the question is, will buying a car worth it? The answer is NO unless if you have money to spend on the privilege of owning one. You are much better renting one if you really want to drive rather than commute. Bear in mind that the Certificate of Entitlement (COE) premiums have already increased across the board.

Here are helpful tips on renting a car in Singapore:


Who can rent a car?

  • You are a holder of a valid Singapore Class 3 or approved foreign license.
  • Some vehicle hire companies require the driver to be over the age of 24 and has a minimum driving experience of 2 years. Other companies have lower minimum age or experience requirements, such as age 18 or 21, and may require a large surcharge, and reduced insurance.

What are the features to look for?

  1. Air conditioning (it is safe to assume that all reputable rental companies will have air conditioning fitted in Singapore).
  2. Manual or Auto. Most of the cheaper and older cars come with manual transmission.
  3. What insurance included in the price?
  4. Is the Goods and Services Tax (GST) included in the price?
  5. Can the car be driven across the border to Malaysia? Most major car rental companies allow their cars to be driven in Malaysia. A surcharge will require.
  6. Is there a mileage limitation? Cars rented for driving in Singapore commonly have unlimited mileage. Cars rented for driving into Malaysia rarely do.
  7. Is 24-hour Roadside assistance offered?
  8. Safety features
  9. Fuel economy
  10. Maps or GPS navigation system. You may need to pay a small amount of fee to rent a GPS navigation system.
  11. Pick up and drop off points. Some rental companies offer these service island-wide in Singapore free of charge.
  12. Is cash card provided? You need one to pay for the toll fee (ERP gantry) in Singapore. Most rental companies offer cash card for sale.

How to save money from renting a car?

- Make sure that you really understand the full insurance cost. Bear in mind that travel insurance can be much cheaper than paying the excess reduction insurance at the time of rental. If you already have travel insurance, make sure you don't pay for extra insurance that your travel insurance already offers.

- Pickup or returning cars to airport or other locations often incurs an additional charge. Look for rental companies that provide these service free of charge.


What about buying a car?

If you have much money to burn then you might as well go big and buy a car for yourself but unlike other countries, you need to have a COE. It was instituted by the government as a program designed to limit car ownership and the number of vehicles on the country's roads. A restriction on car ownership is the requirement that motor vehicles more than ten years old, known as 'time expired' vehicles, must either be scrapped, or exported from Singapore, usually to neighbouring countries. A rule of thumb, don't buy a car with only a few years left on its COE!

Here are important tips that you need to take note:

1. Don't buy a car that you have not test driven yourself for at least around the block. If you are too scared to drive it, ask the seller to take you on a short ride and tell him what you would like him to do: brake sharp, accelerate fast, etc.

2. Don't buy a car (from a private person) if you do not have at least some basic knowledge of cars and know what to look for.

3. Don't buy a car from a dealer unless he has a good reputation (ask him for feedback from his customers and check the Internet).

4. Don't buy a car that is leaking any fluid (black=engine oil/brake fluid, brown=engine oil/brake fluid, red=gearbox, green=radiator or other), has an oily looking engine head or rust on important parts of the chassis such as the door areas, or near the suspensions.

5. Don't buy a car that has problems with the gearbox (automatic or manual) - this type of repair can be very expensive. Don't buy the argument that you will have to use overdrive or use neutral position when parking.

6. Don't buy a car that doesn't stop when you want it to stop. Check all the car lights with the help of a friend.

7. Send the car for inspection.

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