For a first used car, set a budget that includes depreciation, insurance, road tax and running costs, not only the price. Check how much COE is left, take a proper test drive, book a pre-purchase inspection at a workshop you trust, and make sure the ownership transfer is done through LTA before you drive off.
1. Set the full budget
Look at the depreciation figure on each listing (the yearly cost of owning the car), then add insurance, road tax, parking, fuel and servicing.
2. Check the COE
How many years are left on the COE decides how long you can drive the car and how much its depreciation is.
3. Car loan
MAS sets the maximum loan amount and tenure for car loans. Check the current limits on the MAS website and ask the dealer or your bank for the rate.
4. Test drive and inspection
Drive the car on roads you know and book a pre-purchase inspection before you pay in full.
5. Paperwork
The ownership transfer is done on LTA's OneMotoring. Make sure insurance starts from the day you take the car.
Related: Buy a used car from Star Performance Motor. Official rules and figures: LTA OneMotoring.
Frequently asked questions
How much should a first-time buyer budget for a used car?
Start from the depreciation you can afford each year, then add insurance, road tax and running costs. A dealer can show you cars that fit that number.
Do I need a PPI for my first car?
It is strongly recommended. It tells you the real condition of the car before you commit.
Can a dealer help a first-time buyer?
Yes. Many of our Facebook reviews are from first-time owners who were guided step by step.