Are you in the process of buying and owning a car in Singapore? Here’s a helpful guide about the ins and outs of car ownership and maintaining your vehicle with Caltex’s Techron® technology.

SINGAPORE

As with any big purchase that one makes in their lifetime, there are many factors you need to consider before taking the (financial) plunge. The same can be said for buying a car.

Car ownership is a hotly debated topic in the island city-state of Singapore that we call home. And, as most of you reading would be all too familiar, it can get very expensive indeed. 

Here at CarBuyer Singapore, we’re privy to all sorts of car knowledge and vehicle related information which are relevant to any consumer. Here’s a helpful summary of what you should be aware of when you’re buying a car – before and after your purchase. 

Before buying your first car

So you’ve figured out what car you’re looking to purchase. But before any car purchase, one has to factor in taxes, running/operating costs, your loan and interest rates and most crucially, COE and ARF.

COE – Certificate of Entitlement

In a system unique to Singapore, a Certificate of Entitlement (COE) grants an owner the right to register and own a vehicle for 10 years. As with typical bidding auctions, prices tend to be higher when there is an uptake in demand for new vehicles, often higher with cars in category B (1,600cc or 130 horsepower and higher) or the open category E*.

In short, COE prices are at an all time high (as of October 2023), but it is non-negotiable for any car purchase.

ARF – Additional Registration Fee

Then comes the revised Additional Registration Fee system, which taxes any vehicle based on its Open Market Value (OMV), which in simple English means the basic price of the car before any taxation is applied. For any cars with an OMV under S$20,000, buyers are taxed 100% of the OMV, which translates to a total price of S$40,000 – excluding COE.

Subsequently, cars with OMV values between S$20,001 to S$40,000 are slapped with another 140% of tax for any outstanding OMV over the initial S$20,000. Beyond that, the ARF taxes increase with every S$20,000 increment – to the tune of 190%, 250% and peaking at 320% for cars with OMV values north of S$80,000. Suffice to say, it’s a costly sum.

VES – Vehicular Emissions Scheme

Here’s another consideration in your car purchase price: the Vehicular Emissions Scheme (VES) rebates and penalties. There are five VES bands that cars are categorised into here in Singapore.

A1 and A2 are reserved for the most efficient cars in Singapore, netting buyers rebates of S$25,000 or S$15,000. The neutral VES B band doesn’t incur any rebates or penalties. Then comes VES C1 and C2, which slaps buyers with S$15,000 and S$25,000 penalties for cars with higher emissions ratings. Most hybrid vehicles (and electric cars with consumption figures higher than 22.5kWh/100km) will naturally fall into the VES A2 band, which knocks S$15,000 off their car’s price. 

It goes without saying that your loan and downpayment costs will be directly influenced by COE/ARF prices and the VES rebates/penalties. 

Owning your first car

Now that you’re the proud owner of your first car, there are other costs to consider such as your insurance, road tax and inspection costs.

Regardless of how often you use your vehicle, vehicle owners are subject to road tax. These tax amounts vary on your vehicle’s engine capacity (for ICE cars) and/or power rating (for EVs and PHEVs) as well as the vehicle’s age. Surcharges apply for cars that are older than 10 years. Your annual road tax is subject to a 10% surcharge after 10 years, increasing by 10% each year up to a maximum of 50% for cars 14 years and older.

Your vehicle’s road tax can be paid every six or twelve months – payable online, by cheque, at AXS/SAM terminals or road tax collection centres or through GIRO payments.

Mandatory inspections also have to be carried out at LTA (Land Transport Authority) authorised inspection centres to determine your car’s road-worthiness. These routine inspections happen once every two years after 3 years of ownership for new cars, or once annually if your car is 10 years or older. Inspection fees for all approved inspection centres are the same at S$68.04.

Maintaining your first car

Now that you’ve spent so much buying your car, you’ll want to keep your car healthy and roadworthy for as long as possible. 

Doing regular ‘health checks’ on your car at any Caltex station can help with that goal. Checking your tyre pressures, tyre wear and engine oil levels at every fuel stop is good practice to keep your car healthy between scheduled maintenance dates.

You don’t have to rely on the vehicle dealership for your car’s maintenance needs. Fully stocked with everything that you will need to ensure a smooth daily drive, selected Caltex service stations have Caltex Havoline® autoPro Workshops onsite that carry the Caltex Havoline® line of lubricants for regular vehicle servicing needs. Checking your tyre pressures once a month at the air pump for free at every Caltex station is also a good way to ensure that they are inflated to the right pressures for better fuel economy and undue wear.

Also, the Star Marts at Caltex service stations are also great for fast shopping of daily necessities and car accessories.

ICE cars operate by way of combustion and burning fuel which usually leads to carbon build up and soot. If left unchecked, these carbon deposits can accumulate on engine valves and fuel injectors, and result in lower efficiency, or in severe cases have detrimental effects on your engine.

Granted, it’s not easy to dive into the deep recesses of your engine to clean its internals. But by using Caltex with Techron® , you could prevent and remove leftover deposits in your engine. With proprietary additives in Techron® with Clean & Glide Technology™, you can reduce wear and friction in your engine by up to 40% and in turn, maximise your engine’s potential and improve your range.

Click to find out more about Caltex with Techron® fuels here!!!!

*As seen on the historical COE data from Singapore’s Land Transport Authority.

Brought to you by Caltex Singapore

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