Should I keep, repair, or change my car?

A common guideline is to keep total transport spending (loan repayment + running costs) below 15–20% of your monthly take-home pay. At that ratio, a $6,000/month take-home salary supports roughly $900–$1,200/month in car costs — which typically corresponds to a budget car with a Cat A COE. For most mid-range cars with a Cat B COE, a take-home of $8,000–$10,000+ is more realistic.

Depreciation — by far. In Singapore, depreciation (the loss in value over the ownership period) typically accounts for 50–65% of the true monthly cost. This is driven by the COE system: you're essentially paying for the right to own a car for 10 years, and that premium depreciates to near-zero. Running costs (fuel, insurance, road tax, maintenance) are secondary.

On Feb 13, 2026, the government cut the PARF rebate from 50% of ARF paid (capped at $60,000) to 5% of ARF paid (capped at $30,000). PARF is the rebate you receive when you deregister a car before its COE expires. This means cars registered after Feb 13 have a significantly lower 'paper value' — and therefore higher true depreciation cost — over their lifetime.

Often yes on monthly cost, but not always. A used car typically has a lower asking price and lower COE premium, which reduces depreciation. However, it may have higher maintenance costs as it ages, less remaining COE life, and a lower PARF rebate at deregistration. The best way to compare is to calculate the true monthly burn for both — which is exactly what SGCarPrice does.

You have two options: renew the COE (for 5 or 10 years at the prevailing premium) or deregister the car and collect the PARF + COE residual rebate. The right choice depends on the condition of the car, how much COE renewal costs vs buying a new car, and how much of the original ARF is still rebatable. SGCarPrice's Keep vs Buy mode models both scenarios.

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