I’m not a car expert. This is just a quick sharing because information here is not readily found online. Some tips are purely from my observation at the recent cars@expo.
Personally, I pay a lot of attention to the depreciation of the car instead of horse power etc. Road tax, fuel efficiency… anything that adds cost also rank high.
Saving tip on cars #1:Hybrid models actually have high depreciation charges
If you compare between a Honda Vezel Hybrid and a normal one, you will realise the price is only slightly more.
However, the Hybrid model has a much higher depreciation charge as it has little scrap value calculation other wise known as ARF. This is due to the clean energy rebates AKA CEVS rebates that need to be factored in.
For cars with OMV below $20K, the formulae for your ARF (Subject to a minimum ARF payable of S$5,000)
ARF= OMV – CEVS rebates
Consider the hybrid model only if you clock some serious miles.
Hybrid models with AD (authorised dealers) come with a full battery warranty
I checked out the KIA Nero at the booth and it come with a 10y battery warranty.
I’ve heard of warranties from Toyota’s range of hybrids like Prius. I didn’t ask on the Hyundai Ioniq (if anyone knows, please let me know). As battery replacement costs runs in the thousands, it is reassuring to know that this cost is out of the equation.
For the most popular Honda Vezel Hybrids, you may get a 5y warranty on the battery. Furthermore, choose a reputable PI if you wish to rely on the warranty.
If you are buying the Honda Vezel Hybrid, consider selling it after 5years?
Hybrid models and Diesel models are pushing the limits of fuel efficiency
The KIA Nero is at a record 30km/L of something. My brief understanding talking to my friend who sells the Honda Vezel Hybrid (If you need a reputable PI contact, I think he’s qualified. PM me for his contact) is that the car uses battery mode for low speeds 0-30kmph and transit to petrol after.
Do test drive a few to be comfortable with its pick-up.
Diesel models are now widely offered across continental cars like Jaguar to lower end models like KIA. They score about the 20KM/L on paper which is superior to petrol models.
If you frequent Malaysia, NOT all Diesel grades are ok.
Saving tip on cars #2: Multiple tiers of guaranteed bids
This feels like a sales angle used especially by ADs to separate buyers who are urgent to pay more.
Most car sales reps will mention that coe may rise and you end up paying more.
However, it is apparent that these ADs have a profit buffer to absorb slight COE movements when they set their selling price. H
ence, they can actually fulfil non-guaranteed deals quite easily (Albeit at their preferred time). In my contract with Mazda, they even reserved the right to use open category COE to find an entry price to fulfil my non-guarantee bid.
Consider non guaranteed bids if you have time to wait.
Saving tip on cars #3: Road tax and diesel tax
This calculator is free for use and if it’s your first car, I do suggest understanding how this works.
Click here for the free calculator from sgcarmart
Conclusion
Cars are expensive but you may need one for your young family. Our team has put out a video on “How an average Singaporean can become a Millionaire” and avoids car ownership is a tip though haha.
Check it out below!