Cars are an important asset in our daily lives. They get us where we need to go — whether it’s commuting to work, dropping the kids off at school, or shopping for groceries. But there are situations where owning a car can actually be more of a liability. Maybe something unexpected happened and now you don’t have the income to cover the expense. Or maybe your car sits idle most of the time, making it a bit of a white elephant. Whatever the case, here are some scenarios when you should consider selling your car in Singapore.
01 • You don’t use your car very often
Let’s face it — owning a car in Singapore is incredibly expensive. The initial cost is expensive enough, but when you factor in things like the road tax, car insurance, and cost of the certification of entitlement (COE), the amount of money you need to spend really racks up. And that’s not even factoring in upkeep and operating expenses like fuel and maintenance.
As expensive as buying a car is, the more painful realisation may be that you have no time or reason to drive it regularly. Did you know that when your car sits idly all day in its parking spot, you can hear something like dollar bills fluttering in the wind. That’s the sound your hard-earned money makes when it’s wasted — especially if you’re making monthly payments on a car loan, insurance, and parking fees.
In that case, why not sell it? You’ll be able to make some of your money back while also freeing up more cash to allocate to more important things. You could even use a little bit of that money to treat yourself — just don’t go overboard!
02 • You need to free up your budget
There are times when the unexpected happens. Perhaps you’ve experienced a medical emergency, lost your job, or you need to set aside some money to help a friend or relative who’s got financial troubles of their own. Whatever the reason, you need to free up your budget to manage this financially turbulent time in your life.
Situations like these can quickly transform your car from an asset to a big financial liability. Luckily, there’s an option that can help you ease the financial strain — selling your car.
By selling your car, you may be able to pay off most, if not all of your outstanding car loan. And if you have already paid off your car, you’ll benefit from a lump sum that may hopefully get you a respectable amount back on your purchase. But either way, you’ll significantly ease the financial strain from monthly expenses like fuel and car insurance.
03 • Your car is reaching the end of its COE
The dreaded final years of your COE are ticking closer. Your car has been showing signs of wear and tear. Worst of all, maintenance and repair costs for your car are increasing.
These costs can seriously burn a hole in your wallet, especially since older cars require more extensive service. In worst-case scenarios, you may even need to shell out a fortune for major repairs.
Luckily, one of the best times to sell your car is towards the end of its COE so you can avoid such a predicament.
Not only will you be able to avoid paying for repairs, but the car may even have some residual value on the COE if you sell it around its 7th to 8th year — and that means more money in your wallet!
04 • Finding replacement parts is difficult
An unfortunate side effect of your car getting older is that it gets harder to find replacement parts for it. Manufacturers tend to focus on producing parts for newer models, while the production of parts for older models begins to slow and eventually comes to a halt.
The harder it is to find replacement parts, the more you need to pay. The rarity of the parts increases their value, so you might find yourself paying an arm and a leg just to get a replacement part that was once affordable.
It might not be a wise idea to keep your car if you need to fork out extravagant amounts of money to find replacement parts for it.
05 • You want to reduce your carbon footprint
Maybe it’s not money concerns that drive you. You have enough cash, and budgeting is just not a problem for you. Instead, it’s environmental consciousness that’s driving your decision to sell your gas-guzzling car.
It’s a sad fact, but most cars remain a significant contributor to carbon emissions in Singapore. Now, we’re not telling you to give up driving — we’re all about the freedom to drive. But if you’re concerned about the environment, it might be a better idea to sell your car and switch to a more sustainable plan.
One car off the streets may not sound like much, but when you look at the bigger picture, every small drop in carbon emissions counts towards a cleaner planet. Plus, you also get money out of the sale, so it’s pretty much a win-win for both your wallet and the environment.
Did you know that carsharing is a fantastic alternative to owning a car? You get to take huge financial commitments off your shoulders while continuing to enjoy driving freedom. No more fretting about COE, car loans, maintenance, and fluctuating petrol costs. Plus, when you rent a car with GetGo, you also don’t need to worry about deposit or membership fees. Oh, and it’s pretty helpful for the environment, too.
(Featured photo: Autoblog)
To driving freedom!