What is Car Depreciation in Singapore?
When you buy a car in Singapore, it starts losing value over time — this is called car depreciation. Due to high COE and PARF costs, car depreciation Singapore rates can be much higher than in other countries. Understanding your car’s depreciation helps you make smarter financial decisions, especially when buying, selling, or renewing your COE.
How to Calculate Car Depreciation in Singapore
The easiest way is to use a Car Depreciation Calculator Singapore, which instantly tells you your car’s current worth.
However, if you prefer manual calculation, use this formula:
(Original Purchase Price – Current Market Value) ÷ Age of Car (in years)
This gives you the annual depreciation — the amount your car’s value decreases each year.
Why Use a Car Depreciation Calculator Singapore?
✅ Helps estimate resale value before selling your car
✅ Guides your COE renewal decision
✅ Saves time and avoids guesswork
✅ Gives a clear financial picture of car ownership in Singapore
Tips to Reduce Car Depreciation
- Maintain your car regularly
- Avoid unnecessary modifications
- Choose popular and fuel-efficient models
- Sell your car before its COE expires
FAQs (Schema Ready)
1. How to calculate car depreciation Singapore?
You can calculate car depreciation by subtracting the current market value from the original purchase price and dividing it by the car’s age in years.
2. Why is car depreciation important in Singapore?
It helps car owners understand resale value and plan financially before selling or renewing their COE.
3. How does COE impact car depreciation Singapore?
A higher COE value increases your car’s total cost, which raises its depreciation rate.
4. Can car depreciation be reduced?
Yes. Regular servicing, careful driving, and choosing reliable models can slow depreciation.