10 FAQs from Pre-Owned Car Buyers (Pre-Purchase)

Buying a pre-owned car in Singapore is a cost-effective alternative to purchasing a brand-new vehicle. However, many buyers have concerns about the process, from verifying a car’s condition to negotiating the best deal. This article addresses the first five frequently asked questions pre-owned car buyers might have, helping you navigate the buying process with confidence.

1. What Are Mileage and Cost of the Pre-Owned Car?

(Draneas, 2017)

Many pre-owned car buyers in Singapore first ask about mileage and cost. These factors heavily influence a vehicle’s COE validity and long-term expenses.

• Lower mileage cars tend to have fewer mechanical issues and fetch higher resale values.
• Higher mileage cars can be cheaper but may require more maintenance and earlier COE renewal.
• Cost considerations include road tax, insurance, and future repairs.
• COE and depreciation – A car with less than five years of COE left may have lower upfront costs but higher renewal expenses.

For a curated selection of quality pre-owned vehicles in Singapore, visit Motorway’s Pre-Owned Collection.

2. How Do I Verify the Condition of a Pre-Owned Car?

A car’s condition determines its value and longevity. Follow these steps:

• Check the service history – Look for a well-documented maintenance record.
• Inspect for accidents – Get a vehicle history report from services like OneMotoring. 
• Test drive the car – Evaluate braking, acceleration, and handling. Come schedule a Test Drive of our pre-owned cars at Motorway Singapore.
• Professional inspection – A mechanic can detect hidden issues.

Table: Key Inspection Points

3. What Are the Best Ways to Finance a Pre-Owned Car in Singapore?

Financing a pre-owned car can be done through bank loans, in-house financing, or personal loans, each with different interest rates and repayment terms. Buyers should compare total costs, down payment requirements, and loan tenures to find the most affordable option.

• Bank loans – Interest rates range between 2-3% per annum.
• In-house financing – Convenient but may come with higher interest rates.
• Minimum down payment – 30-40% depending on OMV.
• Loan tenure – Maximum 7 years, based on LTA regulations.

Explore personalized financing at competitive rates: https://motorway.com.sg/finance/

4. What Are Common Scams to Avoid?

Pre-owned car buyers should be cautious of mileage tampering, title washing, and hidden fees that could lead to costly repairs. Verifying the car’s history and purchasing from reputable sellers reduces the risk of falling for scams.

• Tampered mileage – Verify with LTA’s vehicle ownership records.
• Title washing – Some sellers hide accident or flood damage history.
• Curbstoning – Unlicensed dealers posing as private sellers.
• Hidden costs – Ensure you check for additional fees like GST, admin fees, and insurance markups.

Check consumer alerts from the CASE.

5. Should I Buy from a Dealer or a Private Seller?

Buying from a dealer provides added security and warranty options, while private sellers often offer lower prices and more room for negotiation. Buyers should weigh cost savings against potential risks and the lack of after-sales support when choosing between the two.

Ready for more insights? Click here for part 2 of 10 FAQs from Pre-Owned Car Buyers (Post-Purchase)