Buying a car in Singapore is expensive enough, so can you imagine how costly it will be to change your car every 6 months?
It will surely burn a huge hole in your pocket and something the average Singaporean can only dream of. The only ‘cost-effective’ way for you to change cars every few months is only available with certain leasing or rental programs.
But even then, you’ll probably be switching around with secondhand cars instead of brand new ones. So unless you’re super-rich, it’s almost impossible to do this… or is it?
In this article, we’ll be exploring why and who might want to change cars every few months, factors to consider and what’s the alternative!
Who Would Change Cars Every 6 Months?
Changing your car every 6 months is certainly a nice idea. Every few months, you get to relive that joyous experience of immersing in that new car smell, bedding in your new brakes and just driving a brand new, never-driven-before car.
Doesn’t it just sound like so much fun? So much fun that even the late Steve Jobs did this!
“But he’s a billionaire, of course, he can do that!”
And we totally agree, for sure, money wasn’t an issue for him. So, if it wasn’t an issue for you and me, it’s safe to assume that a lot of people will definitely be doing this too.
Plus, you know… some of our backsides can get a little itchy sometimes… because for some, owning a car is like having a toy to play with. And with most of our toys, we’ll eventually get bored of them.
When you take everything into account (taxes, depreciation etc.) it’s going to cost a bomb to own a brand new car every 6 months. Here are some factors to consider:
On average, a car depreciates about $1,000 a month over the course of your ownership period.
But right off the bat, your car will depreciate by at least 10% of the amount you paid when you drive it out of the dealership. So, if your car costs $100,000, that’s $10,000 just for driving it home. This means that, at the very least, you’ll lose 20% of whatever amount you paid for the 2 cars in that year.
Your road tax will depend on the engine capacity, so a 1,500cc car will cost about $350 or $700 for 2 cars.
The Difficulty of Selling Your Car
Selling your car in the first 6 months will probably be the most difficult thing to do. You’ll likely get an extremely low offer because if your used car’s price is close to a brand new one, consumers would naturally pay more for the brand new car.
So your pricing will be affected and you’ll probably need to list it for a lot lesser than what you paid for.
You’ll be forking out 30% – 40% of your hard-earned cash every time you buy a brand new car… So if your car costs $100,000 and requires a 30% downpayment, that’s $30,000. Take that and multiply it by 2 and it’s obviously not worth it.
Early Loan Settlement
When you settle your loan early, you’ll be charged 20% of the interest rebate and a 1% charge on your total financed amount.
And that’s not the end of it, there’s still a whole list of other considerations you must make before thinking of buying and selling your brand new car every 6 months!
With buying brand new out of the picture, how about leasing or renting a car?
Well, unfortunately, leasing contracts are typically at least 2 years long. So if you’re going to break the contract, you’ll be charged a pretty hefty penalty.
Daily car rentals can give you that freedom to change cars every few months, but it will be quite costly just to rent a month at a time. For a normal sedan, you can expect to pay around $50 – $70 a day. So, that’s about $2,100 a month!
What’s the Alternative?
Switching between different cars is pretty much unheard of in Singapore. Nobody actually does it because of the costs involved. You’ll be losing so much money every few months, and it’s definitely not worth it for anyone to do, even if you’re rich.
But now, there’s a more cost-efficient way for you to change cars every month!
You can now drive a brand new car every 6 months with $0 downpayment through a CARRO Leap car subscription program.
It’s super flexible because there’s no long term contract to tie you down!
Instead, you only need to commit for a short 6 months and you can switch to a different car. Even if you want to drive the same car, CARRO Leap will still provide you with a brand new one. You’ll even have the freedom to choose another colour. So you can be driving a black BMW 118i for 6 months, and switch to a white BMW 118i for the next 6 months, it’s your choice.
Experience the most affordable and flexible alternative car ownership experience today!