Why Share This Now?
As we appear to be moving past the peak of COE prices in 2025, I wanted to share my experience of buying during the previous price trough and how it has worked out financially.
My Approach to Car Ownership
I’ve always opted for COE cars (Certificate of Entitlement renewed vehicles) rather than new ones, finding them more value-driven. Despite having the means to buy new, I view cars primarily as practical tools for:
- Daily comfort and efficiency
- On-demand convenience
- Carrying capacity for work tools
- Backup transportation (especially valuable during year end peaks or covid when I used it for deliveries)
- Family transportation needs
This utilitarian view means I’ve never felt compelled to buy new or luxury vehicles for status or premium comfort.
My Purchase Details
In January 2019, I bought a Toyota Corolla Altis from a second hand dealer:
- Age: 10 years old with renewed 10-year COE
- Total cost: $44,000 (including all fees)
- PQP (Prevailing Quota Premium): $26,000
- Note: Paid a $300 cash surcharge to avoid taking a loan
Breaking Down Daily Costs
Total daily cost: $55, comprising:
- Depreciation: $12 ($44,000 spread over 10 years)
- Insurance: $7 ($2,500 annually)
- Maintenance: $6 (covering regular servicing and repairs)
- Fuel: $20 (for approximately 70km daily)
- Parking: $10 (excluding CBD rates)
Cost-Saving Strategies
You can consider buying from private sellers instead of dealers to further reduce purchase costs
Key criteria for selection
- Low mileage (under 100,000 km)
- Professional inspection to make sure mileage is not tampered (I brought my father, an ex-mechanic)
- Reliable brands only (Toyota/Honda)
Additional benefits include
- Cost-effective grocery shopping in Malaysia
- Smaller self-drive holidays to Malaysia rather than flying to the region
- Weekend flexibility with family
- Mental well being when it comes to minor accidents or damage
Conclusion
Car ownership in Singapore doesn’t have to be prohibitively expensive. With strategic timing (buying during low price, high supply COE periods) and practical choices, along with certain lifestyle needs of family or professional requirements to travel frequently, it can be more economical than relying on taxis or private hire vehicles.
Side note:
I’ve noticed an interesting pattern among my peers in demanding professions. Those in high-stress roles or positions where professional image matters often gravitate toward luxury European vehicles. For them, these cars serve multiple purposes – whether it’s creating a peaceful sanctuary after a grueling workday, providing a rewarding escape, or projecting professional success to clients and colleagues.
My situation is different. Since I genuinely enjoy my work and don’t feel pressure to demonstrate status through my vehicle choice, I’ve been able to focus purely on value when car shopping. This has led me to choose practical COE cars based on their merits rather than their prestige. I leave you with this photograph and link. (https://finance.yahoo.com/news/warren-buffett-drives-10-old-163017081.html)
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