With Certificate of Entitlement (COE) premiums breaking records soaring and brand-new cars now costing over $180,000, buying second-hand might seem like the smart way forward. For many first-time buyers, the appeal is simple: lower prices, less upfront stress.
But not every used car is a good deal—especially when you factor in COE cycles, depreciation trends, and hidden long-term costs. Some may look like bargains but end up costing more over time.
In this guide, we break down what you’re really paying for, when used cars offer real value, and when you might be better off walking away. If you’re trying to decide whether buying used makes sense in 2025, this is where to start.
Should you buy a used car in Singapore?
- New vs used Singapore car prices: How much can you save?
- When isn’t a used car always the smarter buy?
- Should you buy a used electric vehicle (EV) in Singapore?
- The right car isn’t always the newest one—it’s the smartest one
New vs used Singapore car prices: How much can you save?
Let’s say you’re considering a practical and popular model like the Toyota Corolla Altis Elegance 1.8L—a go-to sedan for families in Singapore.
In 2025, a brand-new model with all the tech goes for $178,888, including COE. After accounting for a 70% loan and 2.78% interest over 7 years, your estimated total cost balloons to $188,400.
Now compare that to a 2020 version of the same car with five years of COE left, listed at $85,000. With a higher loan interest (about 3.3%) and a shorter tenure (4 years), your total cost still only reaches around $89,700.
| Model | New Toyota Corolla Altis Elegance (2025) | Used Toyota Corolla Altis Elegance (2020) |
| Years Left (COE) | 10 years | ~5 years (Registered in 2020) |
| Purchase Price | $178,888 | $85,000 |
| Max Loan (70%) | $125,221.60 | $59,500 |
| Loan Tenure Used | 7 years | 4 years |
| Estimated Monthly Instalment | ~$1,527 (2.78% for 7 yrs) | ~$1,343 (3.3% for 4 yrs) |
| Down Payment | $53,666.40 | $25,500 |
| Estimated Depreciation | ~$10,000/year | ~$8,000/year |
| Total Cost of Car (incl. loan interest) | ~$188,400 | ~$89,700* |
| *Excludes potential cost of COE renewal |
So what’s the trade-off?
You give up the zero mileage, full warranty, and showroom finish. In return, you gain:
- Nearly $100,000 in potential savings—enough to cover 5 years of insurance, servicing, and road tax, with some left for future upgrades.
- Lower upfront costs: A $25,500 downpayment is much easier to manage than $53,000+.
- Slower depreciation: The sharpest drop happens in the first 2–3 years. A 4–6-year-old car that offers more stable resale value.
For first-time buyers juggling major milestones like weddings, loan repayments or postgraduate studies, these savings allow you to move forward with confidence and avoid stretching your budget too thin.
ALSO READ: Wedding Ang Bao Rates in Singapore (2025)—How Much Should You Give?
When Isn’t a Used Car Always the Smarter Buy?
Used cars often shine when you look at sticker prices. Although those savings don’t always hold up once you factor in depreciation, loan interest, or maintenance demands. Just because a car is cheaper today doesn’t mean it will cost you less tomorrow.
Here are four key scenarios where a second-hand car might not be the smartest move and what to look out for instead.
1. When the COE was unusually high
Not every used car is a bargain beneath the surface—especially if it was registered when COE prices are high.
If the car was first registered in 2023 or 2024, odds are it came with a COE quota premium of $90,000–$100,000, accounted for directly in the resale price. Even if the car has five years left, you’re still paying off a premium from the market’s most expensive period.
What to check:
- The registration year of the car
- The COE amount paid during that month (use LTA’s COE History or PQP data)
Tips: If the car comes from a high-COE era, it may still depreciate faster—even as a “used” unit.
ALSO READ: Understanding The Basics of Singapore’s Certificate of Entitlement (COE) System
2. When the car is “too new”
Cars depreciate the fastest within the first 2 years, typically losing 20% to 30% of their value. Buying a nearly-new used car isn’t always a wise move, especially if:
- The price difference from a brand-new model is small (e.g. under $20,000)
- The car has already lost its initial depreciation value (typically within the first 1–2 years)
- It no longer comes with full warranty coverage or customisation flexibility
You may miss out on full warranty coverage, customisation options, or promotional perks that come with a new purchase. In such situations, the cost-benefit trade-off tilts in favour of buying new – especially if the price difference is less than 15%.
Always beware you’re still paying for the sharpest part of the depreciation curve, without reaping the benefits of a brand-new buy even though a lightly used car (under 2 years old) might seem like a sweet deal: lower mileage, modern features, and some cost savings.
3. When the car is “too old”
Cars past 8 years of ownership often come with higher repair and maintenance costs – sometimes ranging from $1,500 to $3,500 per year, depending on the make, mileage, and previous upkeep.
These vehicles also face limited financing options and may soon require COE renewal, which can cost another $85,000 to over $100,000 depending on the vehicle category and market cycle.
| Month | Cat A (≤1600cc & 97kW) |
Cat B (>1600cc or >97kW) |
Cat C (Goods Vehicles & Buses) |
Cat D (Motorcycles) |
| May 2025 | $93,718 | $114,249 | $66,428 | $9,165 |
| Apr 2025 | $92,064 | $114,787 | $66,359 | $8,753 |
| Mar 2025 | $92,525 | $111,807 | $66,874 | $8,344 |
| Feb 2025 | $94,513 | $110,537 | $68,481 | $8,457 |
| Jan 2025 | $97,747 | $109,164 | $70,912 | $8,935 |
| Dec 2024 | $98,582 | $109,880 | $72,215 | $9,509 |
| Nov 2024 | $98,317 | $109,698 | $73,242 | $9,701 |
| Oct 2024 | $94,351 | $104,866 | $72,018 | $9,434 |
| Sep 2024 | $91,697 | $102,639 | $70,766 | $9,149 |
| Aug 2024 | $91,383 | $102,423 | $70,516 | $9,133 |
| Jul 2024 | $91,401 | $102,828 | $69,749 | $9,466 |
| Jun 2024 | $89,634 | $101,008 | $70,620 | $9,649 |
| May 2024 | $84,550 | $99,116 | $71,120 | $9,547 |
Table: COE Prevailing Quota Premium (PQP) Rates: May 2024 – May 2025
Once a car crosses the 10-year mark, it loses its Preferential Additional Registration Fee (PARF) rebate entirely. You won’t recover any of the registration fee if you choose to scrap or deregister.
Watch for cars that are 9+ years old. Unless they’re exceptionally cheap or recently renewed, the long-term cost may outweigh the savings.
Also read: Average Car Maintenance Cost In Singapore 2025
4. When loan interest eats into your savings
Generally, used car loans come with higher interest rates – between 2.88% to 3.88% per annum, depending on the vehicle’s age, your credit profile, and the lender. In contrast, new car loans start from 2.78% p.a. This seemingly small difference can snowball into thousands of dollars over the loan’s lifecycle.
If you’re financing $60,000 over a 7-year tenure:
| Interest Rate | Estimated Monthly Instalment | Total Interest Paid |
| 2.78% (New Car) | ~$799 | ~$7,260 |
| 3.88% (Used Car) | ~$830 | ~$9,960 |
That’s $2,700 more in interest payments — not counting additional servicing or insurance premiums that older cars may incur.
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Tip: Use trusted loan calculators like MoneySmart’s Car Loan Tool to understand:
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Tip When Buying Used Cars in Singapore:To get the best value with minimal risk, shop for used cars that:
This range offers the sweet spot between affordability, financing eligibility, and peace of mind. |
Should You Buy An Used Electric Vehicle (EV) in Singapore?
Five years ago, owning an EV in Singapore felt like a bold lifestyle choice. Today, it’s a practical one – especially as more second-hand Teslas, BYDs, and Hyundai Konas start appearing in the used car market.
With petrol prices creeping past $3/litre and COE premiums still high, the appeal of a used EV is growing fast. Lower running costs, fewer maintenance needs, and high-tech driving experiences make EVs a tempting alternative – but they also come with questions around battery health, warranty, and charging access.
If you’re considering a second-hand electric car, here’s what you need to weigh up before taking the plug-in plunge.
ALSO READ: 12 Tips For Saving Money on Fuel in Singapore
Why a Used EV Might Be the Smarter Buy
- They’re Cheaper Now:
Models like the Tesla Model 3 and Hyundai Kona Electric have dropped 30–40% in resale value compared to when they were first launched. You could get a sleek EV for under $100,000 – far less than a new fuel-run SUV. - Running Costs Are Significantly Lower:
Charging at home or public stations costs a fraction of what you’d pay at the pump. EVs also have no engine oil, no timing belts, and fewer brake changes – thanks to regenerative braking. - Still Eligible for Benefits:
Depending on the model and import status, some used EVs still qualify for road tax rebates or lower upfront taxes if registered under certain schemes.
Don’t Skip the Reality Checks
- Battery Condition is Everything:
A $90,000 Tesla with a degraded battery is a liability. Always ask for a State of Health (SOH) report. A healthy EV battery should be above 80% capacity after 5 years. - Not All EVs Age Well:
Early Nissan Leafs had limited range and cooling issues. Lesser-known Chinese imports may lack support for local chargers or future software updates. - Charging Still Depends on Where You Live:
Condo dwellers may have EV chargers available in their carparks. HDB drivers, on the other hand, often face limited access. It’s good to check platforms like GoBlue.sg to confirm nearby charging options before making your decision.
Popular Used EVs in Singapore (2025)
| Model | Est. Used Price | Real-World Range | Battery Warranty |
| Tesla Model 3 SR+ | $95,000–$120,000 | 430–500 km | 8 yrs / 160,000 km |
| Hyundai Kona Electric | $75,000–$90,000 | 380–450 km | 8 yrs / 160,000 km |
| BYD Atto 3 / Dolphin | $70,000–$85,000 | 400–450 km | 6–8 yrs (varies) |
| MG ZS EV (facelift) | $65,000–$75,000 | 350–440 km | 8 yrs / 150,000 km |
| Nissan Leaf (Gen 2) | $50,000–$65,000 | ~250–300 km | 8 yrs / 160,000 km |
Battery replacement for these models can cost anywhere from $8,000 to $20,000. Always confirm warranty coverage and battery diagnostics before buying.
Tips for Used EV Buyers
Used electric vehicles can be cheaper to run and maintain—if they match your lifestyle routine with a good car battery.
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Before committing, ask yourself:
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The Right Car Isn’t Always the Newest One—It’s the Smartest One
Buying a used car in Singapore is a practical and strategic choice – if you know what to look for. From understanding COE timing to car depreciation, the difference between a good deal and a savings drain comes down to the research you’ve done before the test drive even begins.
Approach the process with care and preparation. A well-chosen used car delivers cost savings, dependable performance, and comfort that fits your lifestyle.
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About the author
Caleb Leong is passionate about travelling the world and getting involved in cross-cultural works. Freelance digital marketing and content writing is a way for him to express himself creatively while earning his keep. He unwinds by diving into a variety of music genres. Living in a digitally disrupted world, he’d like to offer a different perspective on finances to show people the possibilities of what goes beyond a typical “Singaporean life”.
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