If you’re thinking, “I want to sell my car and get the best return,” you’re not alone. Everyone in Singapore is on the hunt for the highest return when it comes to selling their used car.
With cars being such a substantial investment here—especially in light of the recent increase in Additional Registration Fee (ARF) rates announced in Singapore’s 2023 budget on 14th February—it’s all about timing. Selling your car at the right time can be the deciding factor between a good deal and a fantastic one.
So, if you’re still asking your friends, “When is the best time to sell my car?”—look no further. Allow us to guide you through our top tips and strategies to maximize your return when selling your car in Singapore.”
Table of Contents
1) Should I sell my car when the COE is high?
When it comes to selling a car in Singapore, consider first the Certificate Of Entitlement (COE) prices, which can strongly influence the valuation of your second-hand car. Whenever COE prices are higher, potential buyers tend to focus on the used car market as an alternative to a new car.
This in turn leads to an increase in demand and value for used cars (both luxury and non-luxury cars).
Although most cars of similar conditions typically go for the same price regardless of their paper value, owners of cars with a lower Certificate of Entitlement (COE) may end up getting more when they are sold.
This is because if a higher COE car were to be priced higher than a lower COE car, consumers are likely to opt for the lower COE car. Thus, dealers usually adjust their prices in order to cater to consumer demand.
However, this is only worthwhile if your car’s COE is much lower than prevailing prices and you’re not planning on buying another vehicle or already own a second car. Otherwise, purchasing another car, either new or second hand, may negate any potential gains.
2) Which is the best year to sell a used car?
Selling your car from the 4th year onward can be a good idea since its rate of depreciation levels off from then until after its 8th year. Around this time, it should generally still be well maintained and have plenty of COE remaining, so you could fetch a good price in return.
However, if your vehicle begins to incur high maintenance costs due to age-related wear and tear, it might be best to sell earlier rather than later. Depending on the make and model of your car, there should still be demand for it even if you decide to sell early.
At the 5th year
Generally, the ideal time to sell your car is when it hits its 5th year. This is because at this point, the PARF rebate remains at a steady rate of 75 percent. After its 5th year, the rebate will be reduced by 5 percent every year.
| Age of PARF-eligible vehicle at deregistration | PARF rebate amount | PARF rebate amount |
|---|---|---|
| Not more than 5 years | 75% of ARF paid | 75% of ARF paid or $60,000 (whichever is lower) |
| Above 5 but not more than 6 years | 70% of ARF paid | 70% of ARF paid or $60,000 (whichever is lower) |
| Above 6 but not more than 7 years | 65% of ARF paid | 65% of ARF paid or $60,000 (whichever is lower) |
| Above 7 but not more than 8 years | 60% of ARF paid | 60% of ARF paid or $60,000 (whichever is lower) |
| Above 8 but not more than 9 years | 55% of ARF paid | 55% of ARF paid or $60,000 (whichever is lower) |
| Above 9 but not more than 10 years | 50% of ARF paid | 50% of ARF paid or $60,000 (whichever is lower) |
| More than 10 years | Nil | Nil |
At the 7th to 8th year
When your car reaches its 7th or 8th birthday, it may be time to consider selling it. At this point the car will have aged significantly and cost more in maintenance and servicing.
There is also high demand for these types of used cars as young drivers just getting their license prefer an older car whilst those needing an affordable transportation option would opt for a used model over a new one.
This makes the perfect time to switch cars up as you can make a sizable profit while addressing the needs of multiple market segments.
3) What mileage is the best time to sell a car?
Your car mileage is an essential metric when considering selling a vehicle; it’s one of the key elements that determine car value.
Potential buyers will base most of their opinion of your car on its mileage, as a car with low mileage will be more attractive than one that has clocked up high kilometers.
Let’s take a look at several mileage brackets and when might be an appropriate time to put your vehicle up for sale:
Zero to 60,000km
If you’re looking to sell your car, it’s important to be aware of the fact that new cars experience their biggest depreciation in value during their first year of ownership.
After that, the sharp decline continues until the manufacturer’s warranties run out – usually after three years or 60,000km.
So if you are looking to upgrade or changing to a new model with the latest features fairly regularly, it’s best to put it on the market earlier rather than later to get good money for your car – but make sure it still has low mileage and is relatively new.
60,000 to 100,000km
When your car reaches between 60,000 and 100,000km, there is a chance that it might require some minor repairs. However, if you’ve kept up with regular maintenance, then these problems should be limited.
After this point your car will still lose value but at a slower rate. Therefore, if you don’t want to deal with costly repairs or replacement parts, then it’s best to sell your car before it hits 100,000km.
100,000 to 160,000km
Usually when your vehicle’s mileage reaches between 100,000 – 160,000 kilometers, you can consider selling it.
By this point, you’ve already gotten a good return on your car and if it has been maintained well, you may still be able to squeeze out some value from it. So why not put your car up for sale or trade it in for something newer?
Above 160,000km
When you wanted to sell a car that has more than 160,000km on it, even if it continues to run well, it’s likely that prospective buyers will steer clear from it. Higher mileage can point to costly repairs down the line and make them a risky investment.
However, it’s entirely possible to find a buyer for your car, but do take note that you probably won’t be able to recoup much of your initial investment.
4) Should I sell my car before warranty end?
If your car has an extended warranty program which is fully transferable, it will enhances the resale value of your car if you decide to sell it within the warranty period.
Many dealers provide cars with extended warranties of up to 5 years, meaning regular servicing and major works will be covered during this period.
If you decided to sell your car after the warranty has expired, you would have reaped maximum utility out of the vehicle while also avoiding potential repair costs incurred by extensive wear and tear.
So, when this warranty runs out, it may be time for you to change or upgrade your ride and maximize your savings!
5) What is the best month to sell a car?
The ideal time to sell your car in Singapore can be affected by seasonal patterns. At certain times of the year, demand for cars is higher than other times.
Factors such as school holidays can affect the number of potential buyers on the market. Consider researching seasonal trends related to car buying and see if there are any advantages to listing your car at certain times of the year.
Additionally, try timing your sale around dealership sales or major events in the area for an even larger pool of potential buyers.
Best time to sell a car in Singapore?
Each car owner has different reasons for selling a car, so there is no one-size-fits-all answer to this question.
But if you have been thinking about selling your car, then now could be the time to do it, instead of procrastinating as the longer you hold onto your vehicle, the more value it will lose.
Not only will you get less money for it if you try to resell it later, but any rebates or discounts you might be able to get upon deregistration will become less and less valuable over time.
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Is it a good time to sell my car now?
Experts suggest that the time is now! With supply unable to keep up with rising demand, car prices and profits for sellers have skyrocketed, despite the current poor sales. Those in the know predict that prices will continue to rise in 2023, so taking advantage of the current market may be your best chance at a solid payout!
Should I sell my car when COE is high?
If you’re looking to make a profit from selling your car, the best time to do so is when Certificate of Entitlement (COE) prices are high. Keep in mind that the longer you hold onto your vehicle, the more its value drops, both in terms of depreciation and deregistration deductions. So if you want to maximise the return on your car sale, then it’s best to sell when COE rates are highest.
Should I sell my car before it loses value?
When it comes to selling a used car, timing is everything! The main factor to consider when selling your car is its depreciation – which is how much the value of the car decreases over time.
How long should you keep a car before selling it?
When is the best time to sell your car? Selling your vehicle when it has 2 to 3 years left on its Certificate of Entitlement (COE) can help you avoid expensive major repairs and get more value for your car. With a 50% PARF rebate as well as some residual value on the COE, this time frame could give you the most bang for your buck.
