Going Green: The Car Owner’s Guide to Buying an Electric Vehicle (EV)

With the push to go green, environmentally conscious buyers are considering if they should go for an electric vehicle next. Let’s get into the nitty-gritty.

ValueChampion Editorial Team

by ValueChampion Editorial Team on Apr 18, 2024

electric car charging

Environmental concerns are increasingly taking a front seat in public discourse. Singapore has created the lofty goal of phasing out the sale of internal combustion engine (ICE) vehicles by 2030 and reducing peak land transport emissions by 80% by 2050.

To encourage car owners to go green, banks are also offering loans at lower interest rates for EVs than for regular and even used cars. If you’re planning to get an Electric Vehicle (EV), this article will guide you through the process of picking the right EV for you.

Related: Benefits of Green Loans and How To Apply For Them

electric vehicle ev charging
Source: Unsplash

Costs Involved in Getting an EV

Before you start picking out your desired model, here are some things you should know about the costs involved in buying an EV.

Road Tax

Do note that the road tax imposed on electric vehicles differs from Internal Combustion Engine (ICE) vehicles. Road tax for an EV is calculated based on the EV’s power rating.

The tables below demonstrate how road tax is calculated:

Power Rating (kW)6-Monthly Road Tax
PR ≤ 7.5S$200 x 0.782
7.5 < PR ≤ 30[S$200 + S$2.00(PR – 7.5)] x 0.782
30 < PR ≤ 230[S$250 + S$3.75(PR – 30)] x 0.782
PR > 230[S$1,525 + S$10(PR – 230)] x 0.782
Source: OneMotoring by Land Transport Authority

Furthermore, ICE vehicles incur fuel excise duties through fuel consumption. As EVs do not consume fuel, they are not subject to said duties. Hence, in order to achieve balance, an additional flat component of road tax of S$700 a year has been imposed as of January 2023 on EVs until the government is able to convert all vehicles to a distance-based tax.

Licensing PeriodAnnual Additional Flat Component
1 Jan 2021 – 31 Dec 2021S$200
1 Jan 2022 – 31 Dec 202S$400
1 Jan 2023 onwardsS$700
Source: Land Transport Authority

Related: 3 Easy Ways to Save on Your Car Expenses

Insurance

After you chose your dream EV, you will probably need to find good car insurance coverage. It’s mandatory to have car insurance coverage in Singapore. There are three tiers of car insurance to choose from, depending on  the level of coverage you think best suits your needs. Naturally, the car insurance premiums increase as the coverage increases.

Third party Only (TPO)Third-Party, Fire & Theft (TPFT)Comprehensive
  • Most basic, no frills
  • Protects affected third parties in an accident (death, injury, damage)
  • Does not include any coverage for you or your vehicle

*Mandatory to have at least Third Party Only (TPO) car insurance.

  • Covers as per TPO
  • Covers losses (to you) incurred from damages caused by fire and theft
  • Includes all the benefits listed in TPO and TPFT
  • Covers accidental damage to your own car as well

*Mandatory for car owners that take on a bank loan when purchasing their vehicle.

So with these costs in mind, just how much loan would you need to buy an EV?

Find The Best Car Insurance PlansFind Out More

How to Calculate Your Car Loan

There are a few factors that determine how large of a loan you are eligible to take out. These factors include your monthly income, current financial commitments such as other outstanding loans, and your repayment ability and credit scores. DBS’s car loan calculator can help you determine how much you are able to loan.

The car loan amount is dependent on the net purchase price or net valuation amount of the EV, whichever is lower. The net purchase price is derived as the advertised price of the car minus any benefits or rewards received. The maximum approved loan amount is capped at 60% of the net purchase price. This means that you will only be required to make a down payment of 40% to purchase an EV.

DBS Car Budget Calculator

DBS Carmarket place
Source: DBS

An extremely helpful tool available on the DBS Car Marketplace is the inbuilt car budget calculator. You can put in your monthly income, monthly financial commitments and desired loan period and the budget calculator will give you an estimate of your total budget to buy a car and your car loan amount. The calculator then selects and showcases the cars that fit within your estimated budget.

EVs do not come cheap, with vehicle prices ranging anywhere from S$100,000 to S$400,000. As such, many EV buyers choose to take out a car loan to help finance their purchases.

DBS Car Loan

DBS car marketplace
Source: DBS

DBS offers a comprehensive car loan for both new and used EV purchases. You can apply for a car loan through DBS Car Marketplace or through their car loans promotion page.

To qualify for the promotion, you need to make a minimum loan of S$10,000 with a minimum loan tenure of one year. You can apply for a loan on their website using digibank or Singpass.

For second-hand EVs, the loan tenor will depend on the registration date of the car and hence the remaining years on its COE. For example, if the vehicle was originally registered in 2018, the EV would be six years old. Hence, you would be able to take out a loan for up to a maximum of four years to finance the purchase.

Once you’ve calculated the loan amount you will need to take out, it’s time for the fun part: choosing your EV.

Choosing your Electric Vehicle (EV)

There are a few considerations when it comes to selecting the right EV.

Firstly, the most obvious consideration is the price. As electric vehicles have not yet reached the scale that ICE vehicles have, they tend to be slightly pricier than their ICE counterparts. Check out our previous article on the average cost of EVs in Singapore for more in-depth information.

Secondly is the range that the EV is able to cover. The range of an EV represents the distance that you are able to travel with a single recharge. If you are planning on driving within Singapore, the range might be less of a concern as charging ports are increasingly readily available islandwide. If you are planning on driving your car into Malaysia, the range of your vehicle would be more important as you would have to consider when and where you are able to recharge your car on your trip.

Ready to get started on your EV journey? Then we’ve got a nifty tool that will help you make the best choice for you.

DBS Car Marketplace — A Helpful Tool For Your EV-Buying Journey

DBS Car market place
Source: DBS

Finding the right EV can feel like an overwhelming task. DBS Car Marketplace is here to make that process as effortless as possible. With a variety of industry partners, DBS Car Marketplace is a one-stop shop that allows you to select the right EV for you.

Here’s a step-by-step guide to navigating the Marketplace.

1. Check Out What’s On the Market

DBS Car Marketplace partners with direct sellers and dealers to provide a variety of EV options. You are able to filter by individual partners or view all EVs across all partners when browsing on the market.

2. Pick Your Ideal Model

Using the toggles on the sidebar, you can filter your search by car type, car price, registration year, depreciation, mileage and owner number. You can also filter to show only EV options to better streamline your search.

3. Customise Your Vehicle

On top of all that, you can also access exclusive deals to customise your vehicle. You can customise your EV to match your exact needs, from Euro-style leather upholstery to installing an in-vehicle digital video recorder.

Buying your Electric Vehicle (EV)

1. Do Your Homework

When buying a new car, you should always try to negotiate a better deal. This might be a little harder with EVs due to their limited models and supply on the current market as compared to ICE vehicles. However, there are still ways to ensure that you get a good deal for your new car.

For more negotiating power, you first need to have a clear understanding of what models, specifications and deals are on the market prior to going to the seller. Gathering as much information as possible will allow you to make a more informed decision. Having a good grasp of the current market prices for the cars you are exploring will ensure that you will not be misled during the negotiation process.

That being said, be flexible in what you are looking for. If you are willing to accept slightly different specifications on the car, dealers might be able to give you a better discount on the inventory they need to move.

Related: VC Compares: Hybrid Cars VS Electric Vehicles (EVs)

tesla
Source: Unsplash

2. Test Drive the Car

If you are a first-time EV buyer, it is especially important to test drive the car to ensure that you enjoy the driving experience. As the EV does not have an engine or exhaust, it is whisper-quiet, which might be slightly off-putting to drivers who enjoy the sound of a revving engine. Furthermore, EVs typically have single-speed gearboxes. This means that you will not feel the sensation of a gear change while driving the car.

EVs also deliver 100% of their available power immediately. This means that they are able to accelerate very quickly, which could cause the car to feel “twitchy” when driving during your initial adjustment period. These factors, amongst others, mean that it is especially important to test drive any EV you are interested in buying to ensure that the driving experience is to your liking.

3. Take Advantage of Existing Rebates

Under the enhanced VES scheme, buyers can either get a rebate or have to pay a surcharge for the car they are buying based on the pollutants said car emits. The four pollutants being assessed are hydrocarbons, carbon monoxide, nitrogen oxides and particulate matter.

Depending on the level of pollutants the car emits, it will be graded within a band. Cars that are classified as band A1 are considered the ‘cleanest vehicles’ — i.e. the more efficient fully-electric cars. Cars that are classified as A2 are EVs with higher power consumption and hybrid cars.

From 1 Jan 2024 to 31 Dec 2024, VES Band A1 cars will enjoy a rebate of S$25,000. The rebate for VES Band A2 cars is lower at S$5,000. There are also rebates for the Additional Registration Fee (ARF) for vehicles that fall within the two highest bands A1 and A2. Owners who register fully electric cars and taxis from 1 Jan 2024 to 31 Dec 2025 will receive a rebate of 45 per cent off the ARF, capped at SS$15,000.

Conclusion

Singapore’s shift to greener roads means that EVs are here to stay. With the current incentives and promotions available, you probably don’t want to miss your chance to jump on the EV bandwagon and play a part in minimising Singapore’s carbon footprint for a more sustainable tomorrow.

If you are ready to buy your dream electric vehicle, check out our resource page of all the best car insurance plans to get the protection your electric vehicle deserves.

Find The Best Car Insurance PlansFind Out More

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Source: Unsplash

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