Friday, July 6, 2007

Cost of Ownership

One of the biggest ticket items that one may buy in Singapore is a set of wheels to zip around the island country. However, it is extremely complex to understand what makes up the total cost of owning a car …. especially with the Certificate of Entitlement (COE) bidding, Additional Registration Fees (ARF), Motor Loans (flat rate with Rule of 78 that favours the finance company and BANKS too) , bundled Motor Insurance (expensive premium if you renew after a year without getting a competitive quote) and many other little costs that add up.

Here’s a Helplet that explains the cost of running the car over the 10 years’ validity of the COE. With the current low COE, many owners (like me) are tempted to trade-in for a “cheaper” new car ….. but, what is the amount that you are writing off on the current car? Is the trade-in value fair? The analyzer will also illustrate the effect of Rule of 78 for interest rebate when you prematurely pay up your motor loan and also the depreciation of the car over the 120 months.

I have created Version 1 some years ago and updated it to Version 2 with all the new LTA rules till date. Hope you will find it useful! Click here to get the latest version.

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