We Singaporeans are a unique group of people – you tell us to do something and we do the exact opposite. Last week we suggested waiting for COE prices to drop further, but instead, in this week’s COE bidding exercise we saw a significant jump in the number of bids for Category A – 3,437. We’ve not seen so many bids since 2007!
As a result, Category A COE prices rose to $51,301, or an increase of $6,299 since the first bidding exercise of the year. But let’s be honest here – that’s still lower than what the Category A COE price has been since 2012.
So 2016 is definitely going to be the best time to buy a car – but how much will it cost you this year? We break it down for you.
Don’t forget, as announced at last year’s Budget, there will be a one-year road tax rebate for petrol vehicles from 1 August 2015 to 31 July 2016. This is to offset the higher petrol duties introduced last year. For most of us, we can enjoy a road tax rebate of 20% for private petrol cars.
Here’s how you can maximise your money when buying a car
Since it’s going to cost you so much to buy a car, here are three main ways to stretch your dollar.
1. Get a competitive car loan that is best for you so that you can reduce your monthly repayment amount. Just remember that it really doesn’t pay to try to find loopholes in the new car loan restrictions.
3. Apply for the best petrol credit card to maximise the savings you can get when pumping petrol. Remember that it might not be the same credit card, depending on whether you pump at Shell, Esso, Caltex or SPC.
What do you think of the high price of cars in Singapore? Is the lower COE going to make a difference? Let us know in the comments.
The post Here's How Much It'll Cost You To Buy A Car in 2016, Now That COE Prices Have Dropped appeared first on the MoneySmart blog.
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