Pros and cons of owning a car as an expat in Singapore

Even for Singaporean nationals, owning a car can be a stressful experience, but for expats it’s even trickier.

At first, new arrivals in Singapore cope easily with the city-state’s public transport network, but there comes a time when owning a car is the best solution for weekend travel and shopping trips. It’s a big step for expats, as most won’t be staying permanently due to the nature of their work. For many, the number of hoops they’re forced to jump through come as somewhat of a shock, even although owning a car will make their families’ lives far easier.

Perceived wisdom suggests expats planning to stay for less than five years should bite the bullet and put up with taxis plus the provided transportation networks, as car purchase is a big investment. Owning your own car in Singapore is the expensive option as they’re pricey to say the least, and down-payments require a large chunk of cash as does the compulsory Certificate of Entitlement with its limited 10 years’ cover. Insurance premiums and road tax are also high, as is interest on the monthly loan repayments, and the value of the car itself depreciates at a rate of $1000 every month.

In fact, the purchase of a car is a sign of commitment to the job and the city-state, all well and good until there’s an emergency requiring its owner to fly home or the financial situation changes and local payments can’t be made. If leasing a vehicle, breaking the lease is an expensive necessity incurring a high charge for cancellation.

With all this in mind, one local company has brought in a new way to lease and run a car in Singapore, including all related expenses such as tax, insurance, 24-hour roadside assistance and maintenance. Monthly payments seem on the reasonable side, there’s no fixed term applied, and returns are at the customer’s convenience. Even wear and tear is included in the fee, with the scheme likely to be popular with expat professionals unsure as to when they will leave Singapore on a new assignment.