First things first.
Buying a car is a huge decision. It is not just a purchase; it is a tidy sum to set aside for one, especially in Singapore. If you are a first-time buyer, the process can be even more daunting. There are so many things to consider: make, model, price, features, fuel efficiency … the list goes on. As a start to get you going, here are some questions you should ask yourself.
1. What are your needs?
When buying a car for the first time, it is important to take stock of your needs and wants. Do you need a family car? Something zippy or sporty? Do you need a large boot? A high-end Harman Kardon audio system? All the smart tech at your fingertips?
Once you know what you will be using the car for and have your list of must-haves ready, you can start narrowing down your options. For example, if you need a large vehicle for carrying lots of people or knick-knacks, then an SUV or MPV would be a good choice. If you are mostly using the car for commuting, then a smaller car that is more fuel-efficient or an electric vehicle makes more sense.
2. What’s your budget?
Of course, the budget varies from person to person. But generally, you would be spending about 10-15% of your annual income (or if you are looking to buy your dream car, then up to 30%). Be sure not to be overleveraged.
Usually, first-time car buyers would avoid expensive luxury brands. But if there is a model that meets your budget and essential needs, then it might be a more suitable choice than going for the cheapest car in the market.
When thinking about what you should spend on a vehicle, keep in mind that the purchase price is only one part of your expenses. Don’t forget to account for the Certificate of Entitlement (COE), registration fees, taxes, and insurance. And don’t forget to leave room in your budget for petrol, parking, maintenance, and repairs. Cars require regular upkeep, and repairs can be expensive.
If you are worried about long-term maintenance costs, maybe consider an electric car instead?
3. What’s the best time to buy?
When it comes to buying a car, timing is everything. Keep an eye out for offers and discounts. Car dealerships often offer special promotions around major holidays and during special events like roadshows.
Prices are also affected by the COE bidding exercise which is held every first and third Monday of the month. The bidding period lasts for three days. In general, try to avoid buying a car during this time as some dealers might raise car prices to hedge against any COE hits.
4. What research should you do?
Gather as much information as possible about the different makes and models of cars that you might be interested in. You can read reviews online, talk to family members and friends, and visit car dealerships to test drive different models.
You should also research the current state of the market. COE prices could be hitting record highs, so if you can ride out the peak, then your dream car could be within closer reach.
>>Read: Buying a new car? 6 things to consider
5. Should you go for a test drive?
Always go for test drives. Take your time and really check out the car. Feel how the car handles when you are driving on different roads. Take it through turns and corners to see how it responds. Test the brakes. Explore the cabin and make sure it is comfortable and spacious. If you are ferrying passengers regularly, it is worthwhile considering their comfort level as well. Check out the controls and infotainment system as well to see if they are easy to use.
>>Read: The savvy way to test drive an SUV
6. What other things should you consider?
When buying a car for the first time, you might also want to consider the extras. These include things like an extended warranty, optional smart features, and accessories.
Typically, a new car warranty in Singapore offers at least 3 years of coverage with a mileage limitation. Only certain parts of the car are covered – most do not usually cover wear and tear or items such as oil filter and spark plugs. Choose the extended warranty if you feel that spending a bit more would give you extra peace of mind.
In recent times, car manufacturers have increased the standard smart features in their car models. For example, the new BMW X3 and BMW X4 offer a host of driver assistance systems such as lane departure warning, and collision and pedestrian warning, as well as a standard-fit parking assistant package. You can also add optional features such as the BMW Drive Recorder, which takes videos around the vehicle – useful when it comes to recordings of any accidents.
7. What about financing?
If you are buying a car for the first time, most likely you would need to finance your car through a loan. You can get financing from a bank, or through the car dealership.
Do some research on the maximum loan amount you can afford, the interest rate, the loan tenure, and other fine print. In Singapore, you can take a loan of up to 70% of the car purchase price if the Open Market Value (OMV) is lower than or equal to $20,000. If this OMV is above $20,000, you can borrow up to 60% of the car purchase price.
Here’s to a good start
You may have many more questions after you have done your research. It is better to arm yourself with as much information as possible before deciding on a car, and ultimately buying it. Hopefully this will make your first-time car buying experience a happy one!
Visit our dealerships and speak to our sales consultants if you need further help getting a car for the first time: Performance Motors, Vantage Automotive, SDAS and PPSL.
