Singapore's used car market is growing strongly Japan brands are more popular
A used car is a car that has been used by one or more owners and then sold again. Buying a used car has many advantages, including lower car purchase costs, smaller depreciation losses, and a wide range of options. Used cars are more affordable than new cars, allowing consumers to buy a high-performing vehicle on a lower budget, and the depreciation rate of the vehicle is slower than that of a new car, further reducing the cost of car ownership.
Singapore does not produce automobiles, all vehicles are imported. Before buying a car, buyers must obtain a Certificate of Ownership (COE), which is a qualification issued by the government through a quota of vehicle license plates, through regular competitive bidding. After a successful bid, the buyer can register the vehicle and receive a 10-year right to use it. At the end of the 10-year COE period, the owner has the option to cancel the vehicle or renew the COE by paying the current Quota Premium (PQP) to extend the life of the vehicle. In recent years, the cost of COE has continued to rise, with the highest COE price for private cars exceeding S$115,000 as of 2023, and the high cost of ownership has significantly increased the cost of vehicle ownership.
In Singapore, buying a used car has several benefits over a new one. First of all, the cost of buying a used car is significantly lower than that of a new car. The overall cost of buying a car is very high due to the high cost of a new car ownership certificate (COE) and various taxes, while the taxes and fees for used cars are relatively more affordable. Secondly, the depreciation rate of used cars is slower, and the depreciation rate of new cars in previous years is faster, while the depreciation of used cars is smaller after purchase, and car buyers can reduce the economic losses caused by the depreciation of vehicles. In addition, there is a wide range of options in the used car market, and consumers can choose the right model and configuration according to their budget and needs, without being limited by the high price of a new car and limited model selection. Finally, the Singapore government has stricter supervision of the used car market to ensure the transparency of transactions and the quality of vehicles, so that consumers can buy used cars with more confidence. These factors make buying a used car a smart choice for many Singapore consumers.
According to the "2024-2028 Singapore Used Car Market Investment Environment and Investment Prospect Assessment Report" released by the New Thinking Industry Research Center, the Singapore used car market shows strong growth momentum and is expected to exceed US$51 billion by 2027, with a compound annual growth rate of more than 3.9% from 2024 to 2027. Competition among the major brands in Singapore's used car market is fierce, with Japan brands being more popular, Toyota being favored for their reliability and durability, followed by Mitsubishi, Hyundai and Nissan, which are popular for their affordability and ease of maintenance. Luxury brands such as BMW, Mercedes-Benz, and Audi have significant market share, attracting consumers who are looking for a high-quality driving experience. Brands such as BYD and Tesla are also emerging in the market to meet consumer demand for electric vehicles.
In terms of participating companies, companies active in Singapore's used car market include Carro, Carsome and SgCarMart, which provide consumers with a convenient car buying experience by offering a combination of online and offline sales models. Carro and Carsome leverage big data and artificial intelligence to provide customers with accurate vehicle evaluation and pricing services, improving transaction transparency and efficiency. SgCarMart is Singapore's leading used car marketplace, bringing together a wide range of brands and models, from affordable compact cars to luxury high-end models, with a strong market position and a wide selection of vehicles, it has a strong reputation in the used car market.
Xinsijie Singapore market analysts said that the used car market, as an important part of Singapore's automobile market, contains huge investment opportunities, and foreign-funded enterprises can meet the diversified car purchase needs of consumers through technological innovation and high-quality services, and obtain considerable market share and profits.