A Foreigner’s Guide to Buying a Used Car in Singapore

Buying a used car in Singapore can be a smart and cost-effective way to enjoy the convenience of driving in the city. While Singapore is known for its excellent public transport system, many foreigners still choose to buy a car for added flexibility—especially families or long-term residents. If you’re a foreigner looking to purchase a second-hand vehicle here, this guide will walk you through everything you need to know.

Can Foreigners Own Cars in Singapore?

Yes, foreigners are allowed to own and register vehicles in Singapore. Although the country’s public transport is among the best in the world, owning a car can provide added freedom and ease—especially if you’re living in a private residence, have kids attending various activities, or simply value the convenience of driving.

Driving Culture in Singapore

Singapore follows the British driving system—vehicles are driven on the left side of the road, and the driver's seat is on the right. Cars with the driver’s seat on the left are rare and typically restricted to special categories such as certain vintage models or approved construction vehicles.

Wearing seat belts is mandatory for all passengers. Children below 1.35 meters in height must be secured using an appropriate child restraint system, such as a booster seat or a height-adjustable seatbelt. Those taller than 1.35 meters must wear seatbelts at all times, or risk facing a fine.

Drunk driving laws are strictly enforced, and headlights must be turned on between 7:00 PM and 7:00 AM. If you're planning to convert your foreign driving license, you'll cover all these rules in the required theory test, so don’t stress if you’re unfamiliar with them now.

Getting a Driver’s License in Singapore

If you're in Singapore for a short visit, you can legally drive with a valid foreign license along with an International Driving Permit (IDP) issued by an accredited association. Foreigners from ASEAN countries don’t need the IDP.

However, if you’re residing in Singapore long-term and plan to own a car, you’ll need a local driving license after 12 months. Here’s what you need to do:

• Take and pass the Basic Theory Test (BTT) at an approved driving school.

• If you don't already have a foreign driving license, you'll also need to pass the Final Theory Test and Practical Driving Test.

• If you have a valid license and pass the BTT, you can apply online to convert it to a Singapore license.

• You’ll need documents such as your passport, residency pass, your foreign driving license, and a recent passport-sized photo.

  
  

Once issued, the driving license is valid for five years. If you become a Permanent Resident (PR), your license will be valid indefinitely and won't require renewal.

How Much Does It Cost to Own a Car in Singapore?

Singapore has some of the highest car ownership costs in the world—largely due to the Certificate of Entitlement (COE). The COE system is designed to limit the number of vehicles on the road by controlling supply through a competitive bidding process. The COE can cost tens of thousands of dollars, and it’s required whether you're buying a new or used car.

However, buying a used car offers a financial advantage. You don’t have to bid for a new COE if the car is less than 10 years old—you inherit the remaining COE period from the previous owner. This significantly lowers the upfront cost.

If the car is over 10 years old, the COE must be renewed to keep the car road-legal. COE renewals can be for 5 or 10 years. Note that the 5-year renewal can only be done once, while 10-year renewals can be repeated. Renewal costs are based on the Prevailing Quota Premium (PQP)—the three-month average of COE prices, which is updated monthly.

Used car prices also take into account any rebates you’ll receive if you deregister the vehicle early—like the Preferential Additional Registration Fee (PARF) rebate. Sellers may raise their prices based on the potential rebate value you’d get back, so be sure to factor this in when evaluating a deal.

To understand all costs involved in car ownership—including road tax, insurance, and maintenance—refer to our detailed post on the full costs of owning a car in Singapore.

Buying a Used Car in Singapore: Step-by-Step

Once you have your driving license sorted, here are the steps to buying a second-hand car in Singapore:

1. Do Your Research

Start by figuring out what kind of car fits your lifestyle. Consider your budget, size needs, preferred features, and fuel efficiency. Then look online to compare popular models and check reviews.

2. Choose a Trusted Dealer

Work with reputable dealers who offer a variety of well-maintained vehicles. A good dealer should be transparent about vehicle history, provide sound advice, and offer fair prices.

3. Test Drive and Make the Purchase

Test drive the models you're interested in to get a feel for how they perform. Once you find the right one, negotiate the price. The dealer will typically help you handle ownership transfer paperwork, loan applications (if needed), and car insurance.

Buying a used car in Singapore may seem complicated at first, but with a bit of research and planning, it can be a smooth and rewarding process. Whether you're here for work or settling in long-term, owning a car can make life a lot more convenient. Ready to get involved? Email us today at members@expatassociation.com or join us now at https://www.expatassociation.com/join-us and be part of something meaningful.