(Photo Credit: Money Crashers)
Is now the best time to sell your car and buy a brand new one, or switch transportation completely? In this article, we give you five reasons why selling your car is the best option for you right now.
The age old question of when is it the best time to sell your car always revolves in everyone’s minds the minute their vehicle crosses the five-year mark. A number of factors determine the feasibility of selling your car, and over the years these factors change to give a different answer each time. Parting with your beloved vehicle can always be a teary affair, but doing so during the most profitable period would be best for you as a car owner.
The automotive industry is constantly in flux, and there has been a recent emergence of new alternative modes of transportation that make selling your car very much desirable right now. In addition, the recent downturn of COE prices make it very much the right time to sell your car, especially when there is an upcoming spike of COE prices on the horizon.
Thus without any further delay, let’s go into the five reasons why now is the best time to sell your car.
1. Cost of Maintaining Your Car Can Be High
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A viable reason for selling your car is the notoriously high maintenance cost of it. There are many variables to consider when maintaining the efficiency and quality of your car. All these variables rack up to high maintenance costs, placing a heavy toll on the owner.
For example, maintenance costs include tyre change and alignment, coolant and oil top up, base maintenance, and the cleaning of carbon layer deposits in your car’s fuel system. All of these could add up to as much as S$520 every few months, a hefty sum.
Another type of maintenance cost to consider is parking fees, due in part to the fact that nothing in Singapore comes for free. Parking spaces in malls and offices on average cost about $50 per month, while streetside parking could amount to an average of $150 per month.
Over time, these expenses, if not already, can start to take their toll on your wallet. It would therefore be wiser to sell your car, if you find that these expenses are getting harder to cover.
2. Public Transportation Is Cheap and Easily Available
(Photo Credit: Straits Times)
Singapore is well known for its remarkable public transportation service. The Mass Rapid Transit (MRT) system is easily accessible and gets you to your destination relatively quickly. With more than 100 MRT stations available and fares priced at reasonable rates, travelling by the MRT is often the more preferable option.
Furthermore, the added advantage of the MRT system implies that the hassle of traffic jams during peak rush hours is absent. Traffic congestion, especially along the PIE or other commonly used expressways, makes travelling by car very troublesome.
In addition to the MRT system, Singapore boasts a widely used bus network as well. Travelling by bus is largely considered to be more cost effective than travelling by car as bus fares rarely exceed $2.00 per trip.
Moreover, the buses in Singapore are acclaimed to be well maintained, with impeccable seats and clean flooring, making the ride a pleasant time. With numerous bus stations unmistakably peppered alongside Singapore’s roads, it won’t take you long to realise keeping a car is perhaps unnecessary.
These two aspects of the public transportation system make it one of the most cost-efficient, effective transport networks in the world. With such an efficient transportation system within your reach, selling your car is the more feasible option. Why waste expenses on parking fees, when travelling by public transport rarely takes more than S$3?
3. Ride Hailing Companies On The Rise
(Photo Credit: Straits Times)
The presence of ride hailing companies makes it almost redundant to keep a car in this present era. With just a few taps on your smartphone, a ride is a merely a few minutes away. Not only is it an efficient way of cutting down on transport time, but ride hailing apps like Grab and Gojek also offer savings to its members, with discount codes and vouchers.
The meteoric rise of ride hailing companies in recent years has been a striking phenomenon that points to the reducing need for cars. After the acquisition of Uber in Southeast Asia the popularity of Grab as a service has multiplied greatly. This is due in part to the system of knowing how much your fare will cost you beforehand. A handy feature, it causes this service to be much sought after.
Choosing to use these ride hailing companies as your main form of transport also does away with the need to maintain and keep your own vehicle. There is no concern for fines, parking fees, or petrol costs. The notable absence of all these should be a sign that perhaps it would be better to sell your car and opt for these services instead. Having a readily available driver will always be preferable to being frustrated in the morning when your engine doesn’t start.
4. Changes in COE
When considering to sell your car, the trends in the prices of the Certificate of Entitlement (COE) is a vital piece of information to consider. The COE is the piece of paper that affords you the right to own a vehicle, and the trends in its price reveal when it is appropriate to sell your car.
While the COE for Cat A cars did increase in July, more or less, it has been on a downward trend since December 2018. This is largely due to the high supply of deregistered vehicles from 2008 and 2009. Selling your car now would thus enable you to purchase another COE at a relatively lower price than you’d previously expected.
Last year, the government announced the vehicle growth rate being capped at 0%, to avoid congestion on the streets. As a result of this tight restriction on the car quotas, there will be a limited supply of cars, causing prices of COE premiums to be expected to spike despite the current downward spiral. Therefore if you’re looking to sell your car soon and get a brand new one, now would be a good time to do so before COE premiums start to go on a rise again.
5. Redeem PARF and COE Rebates
Additionally, another reason why it can be an attractive option to sell your car now rather than at a later period is due to the possibility to redeem COE and PARF rebates. When a vehicle is deregistered before 10 years after the date of purchase, the owner is entitled to a Preferential Additional Registration Fee (PARF) rebate. The same logic extends to vehicles with a COE, where the COE rebate can be redeemed if it is deregistered before the expiration date.
The faster you deregister your vehicle after the purchase date, the higher the amount of rebate you’re able to enjoy. In addition, it is important to consider that the market value of cars have been known to depreciate rapidly within the first three years.
Another necessary issue often overlooked is the fact that up to the fifth year after purchase of the vehicle, the PARF rebate stays at 75%. Beyond that, it will decrease each year by an additional 5%. If you are to redeem your COE or PARF rebates, it is best to do it now before it will eventually be too late.
All these reasons cumulatively point to why now would be an optimal time to sell your car. Maintenance costs are already high where other cheaper modes of transport are readily available, and waiting any longer might make it less profitable and more expensive to sell your car.
Here at Motorist, we provide you with services on selling, scrapping or exporting your car. Have we convinced you on why now is the best time to sell your car? If we did, click the button above and provide us with your details. You’ll be shortly contacted by our friendly sales consultants.
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