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Before buying a new vehicle, you will always have to sell your used vehicle (unless you are the owner of the car for the first time) and so comes the issue of how much is a fair price when you\'re selling the car.
First and foremost, the car is measured based on the OMV, the ARF, and the COE of the car. Car assessment also takes into account both the state of the car and its mileage. Please note that car valuation is just a reference and can vary from the real price you will get when selling your car to a car dealer or a direct purchaser. Car dealers would probably need to do servicing and upgrades, as well as make some money when reselling your vehicle and thus need to take these costs into account, giving you less than the worth of your vehicle.
Open Market Value (OMV)
The OMV is measured by Singapore Customs as a vehicle is delivered to Singapore. This value covers the exact price of the vehicle before being delivered to Singapore, the expense of freight, insurance, and all other expenses involved with the selling and transportation of the car safely to our shores. The OMV is the base cost of the car and will greatly affect a car’s valuation.
Additional Registration Fee (ARF)
The ARF is a levy levied on the vehicle after it is registered in Singapore. ARF is measured based on the OMV of the vehicle. For the first $20,000 of the OMV, the ARF is equal to 100% of the OMV of the vehicle. The next $30,000 of the OMV has a higher ARF of 140 percent of the OMV of the car which is up to 180 percent for cars with OMV over $50,000.
This would mean that a vehicle of OMV of $60,000 would cost:
First $20,000 (100%) = $20,000
Next $30,000 (140%) = $42,000
Above $50,000 (180%) = 180% x $10,000 = $18,000
Total ARF payable = $20,000 + $42,000 + $18,000 = $80,000
Excise Duty
In the case of imported goods, there will be a 20% tax on the OMV levied by Singapore Customs on the car. On top of the excise duty, don\'t ignore that 7 percent of the goods and service tax (GST) is also levied on your car.
Certification of Entitlement (COE)
The COE helps you to own and register a vehicle in Singapore. The COE relies on the demand for the registration of cars on the market (Check out the current COE prices). It depends on the category of the vehicle, too.
PARF vs COE Cars
Car valuation is therefore calculated whether or not it is in the first 10-year depreciation period (PARF cars) or the cars that the owners have opted to renew the 5-year or 10-year COE (COE cars). The valuation of PARF cars appears to be higher, as it requires the Discounted Extra License Fee (PARF) and the COE rebate. The PARF discount is a proportion of the ARF charged before the car was bought.
Car Dealer’s Markup
The car valuation in Singapore also relies on the car dealer\'s markup. Since the selling of used vehicles is basically a big company in itself, the car dealer often has to make a profit after the expense of factoring to repair the car, advertise and fulfill the required paperwork.
Besides all these as the basis for deriving your car valuation, there are other considerations, such as the mileage and quality of your car that will influence the valuation. To get the most out of your car valuation when you\'re selling, here are 6 tips that you should take note of!
1. Service Your Car Regularly
Serving your car daily would mean that any signs of faults are found early and resolved to help prolong your car\'s longevity and boost driving performance. A comprehensive service record always adds a sense of assurance that your car was well taken care of.
Tires
You should check the pressure of your tires every month. An underinflated tire wears much more at the edges of both ends, whereas an over-inflated tire wears up to 25% more at the center of the tire treads. If there is more damage on one side of the tire than on the other, it may cause the car to be out of balance and may also impact the protection of the driver. Even, a correctly filled tire can help to increase the gas mileage (more cost savings!).
Engine Oil
You should change the engine oil after 10,000 km. changing it periodically means that the oil has its full lubrication function and helps to cool the engine effectively. If this is not achieved, there could be an increased chance of engine loss that will be more costly in the long term.
Brake Pads
Also without STA or VICOM evaluation tests, a skilled driver can quickly say the sound or feel when he or she is driving the test whether or not the brake pads are wearing out. If the car\'s worn brake pads are not replaced, they can cause more harm to the car\'s braking system and pose an additional danger to the driver, passengers, and other road users.
Such routine servicing involves replacing the air filters, spark plugs, braking fluids, etc. That could affect the car valuation in Singapore.
Any car owners who are planning to move to a new car might even miss their last service. Yet this is not exactly a smart thing to do. Used car customers who are smart about used car shopping will like to know when the last service was finished. If the last service is too long away, they will not want to purchase your vehicle in fear of having to pay a hefty price for repairs and upkeep.
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