By The Big Buy desk · Last verified 7 October 2026
Buying a second-hand car in Singapore is really buying the years left on its COE. The fairest way to compare cars is annual depreciation: the price, minus what the car will be worth on paper when its COE runs out, divided by the years remaining. Before you pay, check the COE expiry date, inspection status and outstanding fines, and get an independent inspection. The seller starts the change of ownership on LTA’s OneMotoring, the buyer confirms and pays the S$25 transfer fee, and LTA expects it done within seven days of the sale. Buy from a dealer and the Lemon Law applies; buy from a private seller and it does not.
A good used car can save you a great deal. A little homework turns a nervous purchase into a confident one.
Quick facts
- Transfer fee: S$25, paid by NETS or SGQR PayNow on OneMotoring (as of October 2026).
- Deadline: transfer within 7 days of the sale.
- Who starts it: the current owner, using the buyer’s ID and contact details; the buyer confirms with Singpass.
- Before transfer: the buyer needs motor insurance covering the full road-tax period; no outstanding fines or arrears.
- Inspections: cars aged 3 to 10 years every 2 years; over 10 years, every year.
- Lemon Law: covers used cars bought from a business, not private sales.
How do I work out depreciation?
Every car in Singapore has a built-in end date: its COE. When it expires you either renew it or deregister the car, and on deregistration you may get back a PARF rebate (for cars under 10 years old) and a COE rebate (for unused COE). That leftover is the car’s paper value. Depreciation is what you lose each year between paying and that paper value.
Annual depreciation = (price paid − paper value at COE expiry) ÷ years of COE left
For a car still on its first 10-year COE, the paper value at expiry is roughly its PARF rebate, since no COE is left to refund. For a car on a renewed COE, there is no PARF rebate at all, so the paper value at the end is close to nil. Listing sites usually show a depreciation figure, but work it out yourself so you know what it assumes.
A worked example (illustrative figures)
| Car A: original COE | Car B: renewed COE | |
|---|---|---|
| Asking price | S$90,000 | S$60,000 |
| COE years left | 5 | 5 |
| Paper value at expiry | S$10,000 (PARF) | S$0 |
| Annual depreciation | (90,000 − 10,000) ÷ 5 = S$16,000 | (60,000 − 0) ÷ 5 = S$12,000 |
The cheaper sticker price also wins here, but not always: a low price with only two years of COE left can work out dearer per year than a pricier car with seven. Divide before you decide.
The checks to make before you pay
- Registration details: confirm the registration date, COE expiry and whether the COE has been renewed. The seller can show the vehicle log card on OneMotoring.
- Inspection status: a car over three years old must pass periodic inspection at an LTA-authorised centre (VICOM, STA or JIC). Ask when it was last done and whether it passed.
- Fines and arrears: the transfer cannot go through with outstanding matters on the vehicle.
- Independent evaluation: pay for a pre-purchase check at an inspection centre or a workshop you trust. It costs far less than a gearbox.
- Service records: ask for receipts. Gaps in servicing are worth a discount, or a walk away.
- Loan status: if the car is still under hire purchase, the seller’s loan must be settled before ownership passes cleanly.
- Dealer paperwork: CaseTrust-accredited motor dealers use standard sale agreements and are bound to mediation through the Motor Industries Dispute Resolution Centre if a dispute goes unresolved.
How the transfer works
| Step | Who | What happens |
|---|---|---|
| 1 | Buyer | Buys motor insurance in their own name, covering the full period of the road tax |
| 2 | Seller | Starts the transfer on OneMotoring with Singpass, entering the buyer’s ID and mobile number |
| 3 | Buyer | Gets an SMS, logs in, confirms and pays the S$25 fee |
| 4 | Both | Receive an SMS once the transfer is complete |
Dealers usually handle this for you. One rare extra: LTA may charge an additional levy if a car with a Category A or B COE changes hands when it is only four to six months old, based on the gap between its original and current quota premium.
Dealer or private seller?
| Dealer | Private seller | |
|---|---|---|
| Price | Usually higher, includes the dealer’s margin | Often lower |
| Lemon Law | Applies, judged by the car’s age and price | Does not apply |
| Financing and paperwork | Arranged for you | You arrange your own loan and transfer |
| Disputes | CaseTrust dealers: mediation via MIDReC | Small Claims Tribunals or a lawyer |
Car loans follow MAS limits, which depend on the car’s open market value and cap the tenure at seven years. Budget the cash portion, the loan interest, insurance and road tax together, not the price alone.
The WahLiao Verdict
Shortlist by annual depreciation, not price, and be wary of any car with very little COE left unless you are happy to scrap or renew it soon. Pay for an independent inspection on every car you are serious about, check that the COE dates match what the seller says, and walk away from anyone who rushes you. A dealer costs a little more but brings Lemon Law cover; a private seller can be the better deal if you check twice as carefully.
Questions people ask
How much is the transfer fee for a used car?
S$25, paid by the buyer on OneMotoring by NETS or SGQR PayNow, as of October 2026.
Does the Lemon Law cover second-hand cars?
Yes, when you buy from a business. The car’s age and the price paid are taken into account when deciding what is reasonable. Private sales between individuals are not covered.
How often must a used car be inspected?
Every two years once it is three years old, and every year once it passes 10 years.
Is a car with a renewed COE a bad buy?
Not necessarily. It has no PARF rebate, so its value at the end is close to nil, but the price usually reflects that. Compare its annual depreciation with other cars and budget for higher maintenance on an older car.
Sources: Land Transport Authority, transfer of vehicle ownership and fees; Land Transport Authority, periodic vehicle inspection; Ministry of Trade and Industry, Lemon Law FAQs; Consumers Association of Singapore, CaseTrust for motoring businesses; Monetary Authority of Singapore, motor vehicle loans. The Big Buy explains; it does not advise.
Read next: PARF and COE Rebates: What You Get Back When You Deregister a Car · What a Car Really Costs in Singapore · Back to The Big Buy
For what’s worth it this week, with the bill shown, read The WahLiao Week.
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