The most important decisions have far reaching consequences. And buying a new or used car in Singapore is one of the larger investments you may make, especially if you are paying off your purchase over a few years. Don’t rush into it. Before you visit a car dealer, DirectAsia has 7 handy tips to help you get ahead.
1. Knowledge is Power
Whether you are buying a new or used car, you should research the cars in your price range. Knowing the price other people paid will give you better bargaining power. You can compare the specifications of up to 5 new cars sold in Singapore at oneshift.com or sgcarmart.com Read DirectAsia’s advice on how to negotiate the best deal, and pitfalls to avoid here.
2. Make The Most Of Your Money
As a new car buyer, pay cash for the car or get your own financing if you can. If you do need to discuss financing with a car dealer, focus on the annual percentage rate (APR) rather than monthly payments.
“Many people obtain financing from the car dealership, but this isn’t fiscally responsible. Dealership interest rates are typically much higher than loan rates obtained from banks. Your bank or credit union is one of the best places to start researching car loan rates, and you may obtain relationship discounts that you won’t find anywhere else.” David Bakke, moneycrashers.com
Questions to avoid asking a car dealer here.
3. More Effort = Better Rewards
Make the effort to shop around before buying a new car. The best advice we found on the benefits of shopping around is also from money expert David Bakke who says, “I always make sure that I walk out of at least one dealership. This way, I always know their rock-bottom price, often given to me just before I leave.”
4. Cheaper vs More Reliable
A used car maybe cheaper, a new car more reliable. Just like good car insurance, there is no one-size-fits-all. But there are key questions to ask before you part with your hard earned cash for a new or used car. And asking, will I look good behind the wheel of this BMW, isn’t top of the list. Read DirectAsia’s handy round up on how to decide between a new or used car, and what to ask the car dealer here.
5. Try Online
Where else can you shop for a car in your pajamas? Plus you get to shop any time you like and be done much quicker. No trawling from showroom to showroom, no pressure from an over-enthusiastic car dealer. Try sgcarmart.com, stcars.sg or automart.sg for cars in every price range.
6. Decode The Acronyms
If you text, you’ll know that acronyms are good when they save you time. And bad when you have no idea what they mean. If you are new to buying a car, or wondering if you should buy a car over or under 5 years old in Singapore. Read DirectAsia’s simple guide to the difference between PARF and COE cars here.
7. Watch Out For Expensive Add Ons
Beware of buying insurance offered alongside something else e.g. hotel + travel insurance, or new car + insurance. You are not technically obliged to buy car insurance from your car dealer. The confident new car buyer will always shop around to get the best price.
Save Money Today
Going direct with car insurance from DirectAsia can save you up to 25% on your policy. It is super quick to get a quote. Your bank account will thank you.
*Compared to leading car insurers. 16% of DirectAsia customers would save $300 or more compared to the estimated average premium across leading insurers. Cheapest based on average price of more than 12,000 cases, compared to leading car insurers.