15 May Buy A New Car Or Buy A Used Car?
Singapore has just been named the world’s most expensive cities to live in. We have raced ahead of New York, London and Los Angeles, which didn’t even feature in the top 10 priciest places in the Economist Intelligence Unit’s (EIU) Worldwide Cost of Living 2018 survey. The EIU’s annual ranking compares the prices of over 150 items in 133 cities around the world.
With the exorbitant price tag of new or used cars in Singapore, it is no wonder Singapore is the most expensive city in the world. Singaporeans know this for a fact: that some Continental Europe cars, especially those in the super car and ultra luxury categories can be more expensive than a unit of public housing flat. Unlike a flat however, a car isn’t going to appreciate in value.
The government’s long-term land transport policy has been laid down clearly: car light is the way forward. Lesser COEs will be issued in the coming years. So the majority of car owners will have to keep their cars longer. But cars will still be very much a part of our lifestyle in the foreseeable future. Which beckons the question:
Since buying a brand new car is so expensive, should a car buyer seriously consider a used car?
As one of Singapore’s largest independent automotive servicing centres, we want to lay down two hard truths for you here.
Is buying a used car really cheaper? Or does it just only appear that way without actually being so. Whether you are buying a new car or a second hand one from Parallel Importers, authorised dealers or second hand dealers, you should consider these two factors:
First thing first. A brand new car comes with the peace of mind by virtue of its factory warranty. As long as the car is covered by the factory warranty during the legally binding warranty period, should you ever require any servicing for faulty parts, there will be no questions asked. This is not the case with second hand cars.
Singapore’s law protects all car buyers with its stringent Lemon Law. However, a serious used car buyer owes it to himself to carefully investigate the maintenance history of its previous car owner. The most important advice that we dispense as an independent third party with zero alliance or preference for any car brand, we urge a used car buyer to resist the temptation of a shiny, beautiful car body based on first impression. Please do your homework and inspect beyond the sheet metal. Paying a small fee to have a used car properly inspected by a reputable servicing centre will pay off by offsetting the dreadful buyer’s remorse.
MBM Wheelpower performs this service. We assure all used car buyers that we will produce a full report on the status of the car under purchase consideration without bias. We also highly recommend that you consider the MBM Unlimited Warranty upon purchasing your used car. Some used cars still have a substantially long factory warranty period. There are used cars that their factory warranties have expired. You should take this into long term consideration if have purchased such a car, because you might encounter a breakdown requiring an expensive repair. When your car is covered by MBM Unlimited Warranty, you can drive forth with confidence. For as little as $288*, your car can be covered by MBM Unlimited Warranty? Underwritten by industry acclaimed QBE Insurance (Singapore) Pte Ltd, the MBM Unlimited Warranty gives you unlimited mileage during the coverage period, the highest claim amount up to the purchase value of your car, and the widest motor coverage˜.
* For cars below 1,400cc.
˜ Terms and conditions apply.
Next hard truth to ask yourself is this:
Buying a new car: Parallel import or Authorized Dealers?
Parallel importers (PI) have become a staple source in the supply of new cars. Many Singaporeans are attracted to the price difference when compared to authorised dealers’ prices. But you need to examine the reputation of the parallel importers. Fair warning: there have been cases of parallel importers taking deposits and closing down their businesses without delivering the car.
A deposit on a new car at any parallel importer is not a small sum for the layperson who works hard for a living. You should select the parallel importer that has the standard practice of guaranteed COEs without top-ups to avoid additional costs. Bundled into the parallel importer decision making process is which extended warranty is recommended by the parallel importer? The simple differentiator is this: when it comes to the extended warranty coverage, a solid reputation counts.
MBM Unlimited Warranty is backed by our 18-year-long industry leading benchmark. Our pristine reputation is self-evident: in 2016, we’d successfully listed on the Stock Exchange of Hong Kong. So whether you are selecting a new car from a parallel importer or thinking about buying a used car, you will get peace of mind on your motoring miles with our extended warranty coverage.