Cars have a reputation for being unaffordable in Singapore. But now that the COE prices are low and the MRT is not always reliable, you might be wondering whether you’ve got enough money to buy the cheapest possible car in town.
After the Chery QQ has crashed and burned, what are the cheapest cars in Singapore?
Here are the top 5 cheapest new cars in Singapore as of November 2019 and how much it will costs to maintain and drive one.
Top 5 cheapest cars (new) in Singapore 2019
|Car model||Price (inclusive of COE)|
|Perodua Bezza 1.3 Premium X (Auto)||$60,800|
|Mitsubishi Attrage 1.2 CVT Modern (A)||$60,999|
|Perodua Myvi 1.3X (A)||$62,000|
|Mitsubishi Space Star 1.2 (A)||$62,999|
|Nissan Note 1.2 (A)||$66,000|
1. Perodua Bezza 1.3 Premium X (Auto)
Per-what? You might not have heard of Perodua, but this car manufacturer is actually Malaysia’s biggest. Yes, they’re bigger than Proton.
And according to Perocom Auto’s latest pricelist, a brand new Perodua Bezza 1.3 Premium X (A) costs $60,800, including COE, as of 20 Nov 2019.
That might sound expensive to people who are not familiar with Singapore’s COE system, but for those of us who are, a vehicle that costs almost half of the standard $100,000 price tag is something to be celebrated.
2. Mitsubishi Attrage 1.2 CVT Modern (A)
Next up on the list is the Mitsubishi Attrage CVT Modern (A), which costs $60,999 as listed by Cycle & Carriage Automotive.
The exterior of the car is more rounded and compact, with a wide face. The motor and gearbox is well-suited for the low-speed driving on Singapore’s urban roads, and the fuel efficiency is great. For below $61,000, it’s a functional car that serves its purpose.
3. Perodua Myvi 1.3X (A)
The Perodua Myvi is a hatchback with slightly more premium features than the Bezza and costs $62,000. In terms of power, torque and even the size, it is more superior.
The fuel consumption is decent at 17km per litre and it is fitted with LED headlights. The Myvi also comes in 1.5H (A), which costs $67,800.
4. Mitsubishi Space Star 1.2 (A)
The next cheapest car on the list is the Mitsubishi Space Star. The hatchback has a keyless smart key engine start system and a multi-function steering wheel.
In terms of safety, it has 6 SRS airbags, more than what can be found in the Mazda 2 or Nissan Note.
The fuel efficiency of the Mitsubishi Space Star is great at 14km per litre and the exterior looks pretty sporty to boot. Not too bad for its $62,999 price tag.
5. Nissan Note 1.2 (A)
The Nissan Note is another hatchback on this list of cheap cars, and the only one to have crossed the $65,000 mark. At $66,000, it is marketed as a 5-door mini MPV with intelligent key and proximity sensors.
It has a tiny turning radius which makes it easy to park and the boot size is spacious. The fuel efficiency is excellent at 20km per litre.
Monthly costs of petrol, maintenance and instalments
|Car costs||Cost per year||Monthly running cost|
|Servicing and maintenance||$1,200||$100|
With a car like the Perodua Bezza, Perodua Myvi or Mitsubishi Space Star, you should not skimp on car insurance. The cost of insurance will depend on various factors such as your age and driving experience, but you can expect to pay at least a four figure sum if you have 0% NCD. An average sum would be around $1,500 a year.
Assuming you buy a brand new Perodua Bezza 1.3, your road tax liabilities would be $568 per year.
The Perodua Bezza 1.3 consumes petrol at a rate of about 21.7km/litre. A litre of Shell FuelSave 95 petrol costs $2.204 after discount.
Assuming that you live about 20 km from your work place and you commute twice a day, you would drive 880 km a month for 22 working days. Buffering 50km for each weekend, you would clock 1,080 km a month, using close to 50 liters of petrol.
That translates to an approximate $110 per month for your petrol costs.
Parking and ERP
How much you pay for parking will depend on where you live and work (if you intend to drive to work). HDB season parking for residents is $80 a month for non-sheltered car parks and $110 for sheltered car parks. To park in the CBD, be prepared to pay well over $300 a month. For ERP charges, that will largely depend on whether you drive to work and which highways and roads you use.
Servicing and maintenance
Depends on how hard you work your car, but in general the average car driver can expect to spend over $1,000 per year on routine maintenance work such as oil changes, tyre changes, servicing and so on.
Assuming you buy a brand new car with an Open Market Value (OMV) of under $20,000, you’ll be able to loan a maximum of 70% of the price of the car, with a maximum tenure of 7 years.
So, if you take the maximum loan amount on the Perodua Bezza, after making your downpayment of $18,240, you pay the rest ($42,560) over 7 years at an interest rate of 2.78% p.a.
That translates to $605 a month, or $7,260 a year.
In total, the monthly running cost of your car is at least $925 a month, even when you drive one of these cheapest cars in Singapore.
Bear in mind that this is a bare minimum, as we haven’t taken into account ERP and parking outside of home.
Is there any way to lower the cost further?
In short, yes, there is. Buy a second hand car instead and you could see your costs fall further. In addition to second hand car dealers, there are many online portals like motorist.sg and sgcarmart.com which you can check out, too.
But buying a second hand car isn’t all that straightforward because of the COE system.
Buy a car that’s too close to the end of its COE’s life and you could lose money as the car would be scrapped all too soon. Buy one that’s too new and you’re likely to end up paying a premium, as the car’s value depreciates very rapidly in the first few years. As a general rule of thumb, a car that’s 4-5 years old is a good bet.
Don’t forget, however, that there are other factors to consider, such as the price of COE at the time you buy the car and the mileage and maintenance record of the vehicle.
All in all, car ownership will never be cheap, but whether spending that cash is worth the time saved and convenience really varies from person to person. To make your ride a bit more affordable, it helps to compare car loan interest rates and car insurance plans on MoneySmart.
Do you plan to buy a car? Tell us why or why not in the comments!