​5 Little-Known Hacks to Pay Less For A New Car

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Motorist 5 Little Known Hacks To Pay Less For A New Car Servicing Free Credit Aug 2020
(Photo Credit: iStock)

When it comes to bargain hunting, no country does it better than it than Singapore. This is especially the case when it comes to cars.

Singapore is notorious for being one of the most expensive places in the world to buy and own a car. We know how precious your hard-earned Singaporean dollars are, so here are some ways you can make your dollars work hard for you when shopping for your next car:

1. Purchase Showroom/Test-Drive Units

Motorist 5 Little Known Hacks To Pay Less For A New Car Showroom Test Drive Unit Aug 2020
(Photo Credit: iStock)

This group of cars are pretty self-explanatory: they are units that have been used by the dealer for display in the showroom, or for potential buyers to test-drive.

Should you buy such cars? This often boils down to your personal preference. Are you okay with hundreds of people having touched/test-driven your next purchase? If that is something you can look past, you could knock a few thousand dollars off the final price of your purchase.

Unlike second-hand cars, you need not worry about inspections or defects as dealers have to ensure these almost-new car are well-maintained and appear pristine. They are, after all, the deciding factor between whether a potential customer signs on the dotted line, or walks away from the deal.

2. Purchase Management/Event Units

Motorist 5 Little Known Hacks To Pay Less For A New Car Management Event Unit Car Aug 2020
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These cars are typically almost brand new and have only been used in certain key events such as political summits or auto shows. Such vehicles are usually chauffeur-driven to ferry important dignitaries as they conduct their business in Singapore.

The mileage for these types of cars could range from as low as 100km to 10,000km. As such, you could expect discounts from hundreds to thousands of dollars, depending on its current mileage.

3. Shop For Outgoing Models

Motorist 5 Little Known Hacks To Pay Less For A New Car Buy Shop Outgoing Old Model Aug 2020
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Is the car you are interested in buying getting a facelift or an updated model (new generation)? If it is, dealers may be willing to let go of the outgoing model at discount prices to clear their current stock of cars.

Depending on the brand, outgoing models might be priced from S$5,000 to S$20,000 less than their updated counterparts.

You will need to perform some research for this, however, you will surely reap the benefits of doing so.

4. Take Up A Shorter and Smaller Loan

Motorist 5 Little Known Hacks To Pay Less For A New Car Shorter Smaller Loan Aug 2020
(Photo Credit: iStock)

Did you know that a car loan makes up the bulk of the commission and profits to the salesperson and dealership respectively?

Most salespersons will push car buyers to take up a larger car loan for a longer duration because they can generate the most profits from the interest.

If you are financially stable, you could try to negotiate for a smaller loan over a shorter period, so that you pay a lower interest over time.

This goes without saying, but you should always perform your due diligence when calculating your finances.

5. Do Away with Servicing Credits and Free Accessories

I Stock 623184960
(Photo Credit: iStock)

Depending on the dealership, you may be offered perks such as servicing credits, vouchers, free accessories or extended warranties. Instead of accepting these perks, you could try asking for cash discounts to offset the listed price of the car instead.

Similarly, if you aren’t able to get cash discounts by forgoing these perks, you could always ask for other freebies as well. These freebies can come in the form of car cameras, solar films, floor mats, boot trays, cash card, servicing and grooming packages, or even an extended warranty period!

Ultimately, the best way to take advantage of these money-saving hacks is to go down the dealership and negotiate directly with the salesperson.

Who knows, if they happen to be falling short of their sales target, they might be more willing to offer you a better deal!

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