What Makes It Expensive to Own a Car in Singapore


In the current softening economic climate, owning a car has become less affordable for people living in or visiting Singapore. To solve this problem, many people take turns to car rentals to get around, especially for the festive holidays such as Chinese New Year and Hari Raya. Here are the three factors that make owning a car difficult in Singapore.

Open Market Value (OMV)

Open market value (OMV) is one of the main factors that make purchasing a car in this country an expensive venture. The OMV is the total price paid for a car and includes the purchase price, insurance, freight, and all the other charges that are a related to sales and delivery of the car. It is also important to note that the Singapore Customs controls OMV.

Additional Registration Fees (ARF)

When planning to purchase a vehicle, you also need to put into consideration the additional registration fees (ARF). ARF is a tax that is imposed on the registration of any vehicle and is calculated as a percentage of the total OMV.

Certificate of Entitlement (COE)

The Certificate of Entitlement (COE) for a vehicle lasts for ten years. As a car owner, you can benefit from COE rebates if you deregister your vehicle before the COE expires. The rebates are calculated based on the remaining months and days to the expiry date.

Luckily, there are many established car rentals that you can get a car at an affordable price.

When selecting a car rental agency, it is important to consider the following factors to get value for your money.

Industry Reputation

There are more than 150 car rental companies in Singapore. It is recommended to conduct some background research to ascertain the reputation and credibility of each company in your shortlist to avert spending your hard-earned money on substandard services. Steer clear of companies that have a negative reputation and extensive bad reviews on online motoring forum boards. There are unscrupulous agencies that attempt to overcharge or provide faulty vehicles, then attempt to charge the hirer for damage.

Compare Prices

Compare and contrast the fees charged by different companies to identify one that best suits your budget. The car model, age and condition, day of the week, length of rental and the season will be taken into account when these fees are calculated. These may vary greatly from company to company, so you should do your price comparison extensively to get the best deal.

Finally, when choosing an agency that provides car rentals, be sure that it is legally accredited and capable of meeting your specific needs and preferences. Global Advance Leasing will provide ideal solutions for all your transport needs. Visit http://www.gal.com.sg/ today for a professional and affordable car rental service.

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