In Singapore, buying a used car starts with cost comparisons, although that is only the beginning. From the Certificate of Entitlement (COE) cycle to financing and seller reliability, each step affects both your experience and long-term spending.
Authorised dealers, parallel importers, platforms, and private sellers each offer a different balance of convenience, risk, and financial flexibility. The choice you make influences not just your upfront payment, but also future expenses such as loan interest, insurance, and potential repairs.
This guide walks you through where to buy, how to evaluate each seller type, and the red flags to avoid. Whether you are a first-time buyer or simply switching from a previous vehicle, this article helps you plan a smoother and smarter purchase.
How to buy a used car in Singapore (2025)
- Car marts in Singapore: Where to look for your ideal used car
- What should you look out for before buying a used car?
- Buying used car insurance in Singapore
- Used car loans in Singapore: How to finance your car
- Final words
Car marts in Singapore: Where to look for your ideal used car
Different sellers offer varying advantages. Some prioritise certified inspections and warranty support, while others appeal with lower prices or more room to negotiate. The right choice depends on your priorities—whether that’s long-term protection, upfront savings, or more control over the buying process.
Let’s break down the 3 most common places to buy a used car in Singapore and what each one means for your wallet, risk exposure, and peace of mind.
1. Authorised Dealers & Car Marts
Buying from an authorised dealer remains one of the safest ways to purchase a used car in Singapore. These physical showrooms offer not just vehicles, but a full-service ecosystem – from on-site inspections and financing to warranties and trade-ins.
For buyers who prioritise an ease of mind, legal protection, and a guided experience, this route offers the highest level of assurance.
Why Choose a Dealer or Car Mart?
- Transactions are protected under the Lemon Law and supported by CASE
- Some dealers offer warranty coverage, in-house financing, and trade-in packages
- Cars are typically better maintained, with inspection reports available
- Financing and insurance can be arranged on-site
Top Used Car Dealers in Singapore by Region (2025):
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North/North-East
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Central/Central-East
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West/Central-West
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Tip: Visiting a car mart lets you test drive multiple models, compare deals side-by-side, and negotiate in person.
2. Online Used Car Platforms
These days, browsing for a used car feels more like shopping on an e-commerce site. Within a few taps, buyers can explore hundreds of options, compare financing plans, and even schedule a test drive, all without stepping into a showroom.
Online car platforms have evolved into full-service ecosystems for vehicles. From AI-generated condition reports to instant loan approvals and COE tracking tools, many of these marketplaces now let you manage the entire process digitally.
For buyers who want speed, control, and transparency, these are often the easiest options to begin with.
Top Online Platforms in 2025:
| Platform | Key Features | Best For | Fees |
| Carro | AI-driven listings, certified cars, doorstep test drives, financing | First-time buyers who want a risk-free, all-in-one solution | Charges a fee of S$250 or 0.5% of the transacted price, whichever is higher. |
| Sgcarmart | Singapore’s largest COE car inventory, deep price tracking tools | Buyers comparing COE/resale value, long-time researchers | Listing fees are charged to sellers; buyers typically pay no direct commission. |
| Motorist.sg | Car management app, digital ownership transfers, inspection, financing | Busy drivers who want all-in-one control on mobile | Charges a service fee of S$100 upon a successful transaction for cars with more than 8 months to COE expiry. |
| CarTimes Auto | Hybrid showroom + digital browsing, servicing, in-house loans | Buyers who want both online ease and showroom experience | Commission fees are typically bundled into the financing package; specific rates may vary. |
| Republic Auto | C&C-backed dealer, quality-assured vehicles, servicing support | Premium-seeking buyers looking for reliability | Dealer margin is included in the price; no separate online fee is charged. |
| Singapore Autos | Export specialist with listings for local buyers | Rare continental or export-focused model seekers | Commission fees vary and are negotiable with the seller; no standard platform fee. |
| Carousell Motors | Classifieds format, filters, mix of private and dealer listings | Budget buyers, under $70,000, direct-owner seekers | Free for buyers; sellers pay listing/promotion fees. Starting June 2025, professional accounts with monthly revenue of S$1,300 or more will incur a service fee. |
Tip: Always check for ownership history, logbooks, inspection status, and warranty options when buying online. Use platforms with verified listings or “certified used” tags.
3: Direct from Owner (Private Sellers)
If you’re hunting for the lowest possible price, buying directly from a private seller might be your best bet. Often found through platforms like Carousell, Facebook Marketplace, or word-of-mouth; they come with zero markup from the middle men.
However, this route demands more legwork and risk.
What to Expect When Buying from a Private Seller
- Lower prices, as there are no middlemen or commission fees
- Full negotiation power, but no after-sales protection
- You’ll be responsible for everything:
- COE transfer
- Insurance
- Inspection (which you must arrange separately)
- Road tax and paperwork submission
There’s also no warranty and assurance of servicing quality unless the seller provides proof. Just because the odometer looks fine doesn’t mean it hasn’t been rolled back — verify it before you commit.
Caution: Always request a pre-purchase inspection at a workshop of your choice. Check the car’s ownership and servicing records via LTA. If the price is significantly below market value or the seller is unwilling to provide documentation – take it as a red flag and proceed with extra caution.
Who Should Buy Used Cars from a Private Seller?
- Buyers who know cars well and can evaluate condition independently
- Drivers looking to spend under $60,000 with flexible expectations
- People willing to accept higher risk in exchange for more savings
Summary: Which Used Car Seller Channel Fits You?
| Channel Type | Key Benefits | Drawbacks | Ideal For |
| Authorised Dealer | Warranty, paperwork, inspection, aftersales | Higher upfront prices | First-time buyers, risk-averse |
| Online Marketplace | Variety, price comparison, digital tools | Quality inconsistency, less recourse | Mid-tier buyers, research-driven |
| Direct Seller | Best pricing, flexible negotiation | No warranty, DIY process | Veteran buyers, budget maximisers |
What Should You Look Out for Before Buying A Used Car?
You’ve shortlisted the right models and calculated the costs. Now it’s time to assess whether the car actually delivers to what’s promised. Even a vehicle that looks flawless on the surface can hide mechanical issues, accident history, or paperwork red flags.
A good deal should offer a reliable car, proper paperwork, and sufficient coverage for the buyer. This means checking the car inside and out, verifying documents, and knowing the difference between normal wear and high-risk damage. Choosing a trustworthy seller can help avoid unexpected repair / maintenance down the line.
1. Know the Category: PARF vs. COE Cars
Is this a PARF or COE car?.
| Type of Car | Age & COE Status | Rebate Eligibility | Key Financial Implications |
| PARF Car | Under 10 years old (original COE) | Eligible for PARF rebate (50–75% of ARF if deregistered before 10th year) | Lower road tax, potential rebate worth several thousand dollars |
| COE Car | Over 10 years old (renewed COE) | Not eligible for any rebate | Higher road tax, increasing 10% annually (up to 50%) |
For instance, a 2016 Toyota Altis might cost $40,000 today. If it’s COE-renewed, you could be paying 30–40% more in annual road tax. Unfortunately, none of that is recoverable when you eventually deregister.
Tip:
- Ask for both the original registration date and the COE renewal year.
- Then verify rebate eligibility on OneMotoring before you commit.
ALSO READ: Guide to COE Rebates, PARF Rebates, & PQP in Singapore (2025)
2. Look Past the Mileage—But Still Ask
Never assume that low mileage equals a better buy. A car that’s barely driven – say, under 6,000 km/year – might have spent long periods idle. This increases the risk of battery failure or dried-out engine seals, especially in Singapore’s humid climate.
Conversely, high mileage isn’t always a dealbreaker if the car is well maintained. A 2018 Hyundai used for private hire might clock 150,000 km, but if it’s been regularly serviced, it might outlast a “low-mileage” equivalent with poor upkeep.
What really matters:
- Annual mileage between 12,000–18,000 km is considered standard.
- Ask how the car was used – for commuting, Grab, or long-distance driving.
- Request to see servicing records or the LTA logbook.
- Confirm the number of previous owners. Generally, 1–2 is ideal. More than 3 could signal inconsistent care or frequent issues.
Red flag: If the mileage seems “too good to be true” for the car’s age, ask for past inspection reports. Tampering still happens.
3. Inspect with Your Eyes
A clean exterior can create a false sense of confidence. Hidden beneath that polish could be signs of past accidents — like panel gaps, rust, or underbody damage — that only a careful inspection would reveal.
What to look for when buying a used car:
| Area | What to Check | What It Might Indicate |
| Exterior |
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Possible accident repairs, panel replacements, or hidden rust damage |
| Interior |
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Wear and tear, electrical faults, flood damage, or poor maintenance |
| Wheels & Tyres |
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Poor alignment, underinflation, or suspension issues |
| Engine Bay |
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Signs of engine wear, poor maintenance, or costly future repairs |
| Undercarriage |
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Road abuse, accident damage, or ageing parts |
| Test Drive |
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Suspension wear, alignment issues, gearbox or brake problems |
| Electronics & Safety Features |
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Faulty electronics or deactivated safety systems |
4. Ask About Warranty & Certification
Many dealerships now offer Certified Pre-Owned Cars, which undergo rigorous inspections and come with a 6–12 month limited warranty.
While these cars may cost a little more, they offer added peace of mind especially for the first-time buyer. On the other hand, some manufacturers also offer transferable warranties that cover key components like the engine or transmission up to five years.
Example:
A 2019 Honda Civic 1.6L listed by an authorised dealer at $98,000. The same model from a direct seller might go for $96,000 — a $2,000 difference.
However, the authorised dealer includes:
- A 12-month drivetrain warranty covering engine and gearbox faults (worth ~$800–$1,200 if bought separately)
- A pre-sale 120-point inspection report detailing the car’s condition
- Free servicing for 6 months or 10,000 km (worth ~$300–$500)
- In-house financing support and paperwork handling
By contrast, the $96,000 car may come with:
- No warranty or inspection
- Higher risk of hidden wear (e.g., worn brake pads, ageing battery, or early gearbox issues)
If a major fault like a $3,500 CVT repair arises, that $2,000 premium could end up saving you much more than it costs.
5. Don’t Forget Road Tax, Insurance & Other Ongoing Costs
Congrats, you’ve found a car within budget. Now it’s about making sure the overall costs stay within your means for the next 12 months.
- Road tax: For a 1.6L engine car, annual tax ranges from $744 to $1,200. If the car is COE-renewed and over 10 years old, expect annual increases.
- Insurance: Prior accident claims or ownership changes can bump your premiums up. Make sure to ask if the No Claim Discount (NCD) is affected.
- Other costs: Are the tires due for replacement? When’s the next servicing? How long before the COE expires?
A good seller – especially a platform or dealership – should be able to give you a cost forecast for the next 12 months. If they can’t, that’s a red flag.
Tools to Use When Buying a Used Car
| Tool | Purpose | Where to Access |
| CASE SAFE Checklist | Physical inspection guide | case.org.sg |
| OneMotoring COE/PARF History | Rebate & registration check | onemotoring.lta.gov.sg |
| sgCarMart Valuation Tool | Fair pricing comparison | sgcarmart.com |
| Motorist App | Ownership transfer, valuation | motorist.sg |
| Carro Certified Inspection | 160-point digital report | carro.co |
Buying Used Car Insurance in Singapore
Many buyers focus on price and paperwork, yet overlook insurance until the keys are in hand. That delay can be costly. The right policy does more than check a box; it buffers you against repair bills, accident liability, and claim disputes, especially with a second-hand vehicle whose history may be less transparent.
Types of Car Insurance Plans in Singapore
Car insurance plans fall into 3 main categories. What you choose should be dependent on the age of the vehicle, its condition, and how much risk you’re willing to shoulder.
| Type | What It Covers | Who It’s For |
| Comprehensive | Damage to your car, third-party injury/property, fire, theft, vandalism | Most car owners, especially those with car loans or newer vehicles |
| Third Party, Fire & Theft (TPFT) | Damage you cause to others + coverage for your car in fire/theft situations | Older cars (5–10 years), COE cars |
| Third Party Only (TPO) | Covers liability for injury/death or property damage to others only | Budget-conscious drivers, high-mileage or older COE vehicles |
Note: If you’re financing your car with a bank or in-house loan, comprehensive coverage is typically mandatory.
What Affects Your Premium?
Every quote is shaped by a combination of personal and vehicle-specific factors. Understanding what affects your premium can help make smarter choices and generate savings over time.
| Factor | Details | Impact on Premium |
| Driver Profile | Age, driving experience, past accident or claims record. Drivers under 27 or those with < 2 years of driving experience are seen as higher risk. | Higher premiums due to perceived inexperience or greater risk of accidents. |
| Car Age & Model | Luxury brands (e.g. BMW, Mercedes-Benz), high-performance vehicles, or older models with scarce spare parts usually cost more to insure. | Higher premiums due to costlier repairs or part replacements. |
| No-Claim Discount (NCD) | A progressive discount applied for each year without a claim. Can go up to 50% off after 5 claim-free years in Singapore. | Significant savings on annual premiums—even more over long-term ownership. |
| Excess Amount | The portion you pay before the insurer covers the rest in a claim. Set voluntarily (standard usually ranges from $500 to $2,000). | Higher excess = Lower premium (but higher out-of-pocket if you claim) Lower excess = Higher premium (but more coverage in the event of an accident). |
| Car Usage Type | Daily commuter, private-hire vehicle (e.g. Grab), or leisure/weekend use. Commercial or high-mileage usage can increase exposure to risk. | Daily or commercial use often results in higher premiums due to increased road time. |
| Annual Mileage | Higher mileage increases the chance of accidents and wear. Some insurers now ask for estimated mileage brackets during quote. | May trigger tiered pricing—above 25,000 km/year may incur premium loading. |
| Parking Location | Whether the car is parked in a secured multi-storey carpark or on the street overnight. | Covered or secure parking may reduce risk of theft/vandalism, leading to lower rates. |
| Modifications | Aftermarket parts (e.g. spoilers, turbo kits, upgraded sound systems) can affect repair risk and costs. | Higher premiums or coverage refusal, depending on insurer policy. |
Where to Compare Insurance Plans in 2025
With digital tools offering side-by-side plan comparisons and customisation features, finding the right balance between cost and coverage is easier than ever.
| Platform | Key features | Best for | Commission / fees |
| MoneySmart Car Insurance Wizard | Compares over 20 providers with driver/car filters | Value-seeking buyers | Free for users (insurer pays platform) |
| Tiq by Etiqa | Adjustable excess, digital claims, quick quotes | Tech-savvy drivers | No added fees |
| Singlife | Modular plans, suited for both old and new cars | Custom plan shoppers | Built into premium |
| FWD | Transparent pricing, app-based claims | Younger drivers or new owners | Includes admin fees |
| Budget Direct | Low-cost plans, extras for older/high-risk cars | COE drivers or those with tight budgets | Admin/renewal fees apply |
Tip: Compare at least 3 quotes before buying—small differences in excess or coverage terms can lead to big differences during a claim.
ALSO READ: Buy Car Insurance Online Singapore 2025 – Get A Quote
Additional Coverage to Consider
Hidden damage. Faulty parts. Surprise repairs. Used cars come with risks — and basic insurance may not cover them all. Thankfully, these add-ons help to close the gap.
- Windscreen Cover – Common claim item, especially with frequent highway driving or older vehicles.
- 24/7 Roadside Assistance – Particularly useful if your car is out of warranty or over 5 years old.
- Loss of Use – Covers a rental car while yours is in the workshop – invaluable for daily drivers.
- Workshop Flexibility – Some insurers only allow repairs at approved locations. If you already have a trusted mechanic, make sure your policy lets you use them.
Before committing, ask: “Can I choose my own workshop?” That one clause could save you time, frustration, and unnecessary repair costs later on.
Summary Checklist Before Buying Insurance for a Used Car
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Used car loans in Singapore: How to finance your car
Before signing anything, it’s worth understanding how used car loans really work — from interest mechanics and repayment traps to platform comparisons and loan structures that match your timeline.
More Than Just Interest Rates: What Affects the Loan You Get
Unlike new car packages, used car loans vary widely. Interest rates tend to run higher. Tenures are shorter. The older the car, the more restrictive the loan terms become.
- The maximum loan isn’t based on the selling price, but on the Open Market Value (OMV). For used cars, this is typically capped at 70%.
- While 7 years is the longest tenure allowed, many lenders shorten this for older vehicles.
- interest rates? These can start around 3.3%–3.5%, but go higher with age, mileage, and lender policy.
A $90,000 used vehicle with a $35,000 OMV, you’ll only be eligible to borrow $63,000 – and pay the remaining $27,000 upfront. Counting in interest, that car could cost you upwards of $75K–$80K over time, depending on your loan choice.
3 Common Types of Used Car Financing
The right loan type depends on your financial ability, timeline, and how much flexibility you want down the line.
| Type | What It Is | Pros | Cons |
| Bank Loans | Loans from banks like DBS, OCBC, UOB | Lower interest, reputable lenders | Stricter eligibility, longer approval time |
| In-House Loans | Offered directly by dealers | Fast approval, flexible on car age | Higher interest rates, admin fees, possible lock-ins |
| Balloon Scheme (PARF Cars Only) |
Lower monthly payments by excluding PARF value | Low monthly cost, good for short-term ownership | Large lump sum at end, higher total interest |
| Example: Buying a $90,000 used car (OMV $35,000) Max loan = $63,000 Interest at 3.3% for 7 years = ~$900/month Total repayment: ~$75,600 |
ALSO READ: Are you paying more than you should with dealer financing?
Where to Compare Used Car Loan Offers
It pays to compare not just monthly repayments, but the true cost over time. Interest rates, administrative fees, and balloon payments can come to bite you back. Hence, using the right tools can make all the difference.
Whether it’s choosing between banks or checking if a dealer’s “promo rate” holds up, these platforms help to calculate, compare, and make an informed decision.
| Platform | Features |
| MoneySmart Car Loan Calculator |
Compare across banks, see total repayment and interest clearly |
| Motorist.sg Loan Estimator | Instant in-app estimates based on age and value of car |
| Carro Finance | Integrated with vehicle listings, same-day approvals |
| Sgcarmart Loan Hub | Get dealer-approved loans across listings |
| DBS Car Marketplace | Partnered dealers, fixed rate offers, easy MyInfo integration |
Tip: For a deep dive into loan types, interest traps, and buyer tips, check out MoneySmart’s Guide to Car Loans.
Key Questions to Ask Before Signing a Loan Agreement
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Final words
There’s no one right place to buy a used car, only the place that makes the most sense for your needs. Once you understand how different sellers operate, how to read a listing properly, and how to structure your loan wisely, the process becomes far less intimidating.
What matters most is walking away with clarity, not uncertainty. With the right preparation, you’re not just getting a used car, you’re making a decision that supports your lifestyle, your finances, and your long-term plans.
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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