Guide to Buying A Sports Car While COE Premiums Hit 100k Mark In 2022
Buying A Sports Car in Singapore
Enjoying the luxurious comfort, speed and power of a sports car in Singapore does come at a cost, although it is usually worth it for the thrilling experience you get to experience on the daily. On top of the hefty prices of a sleek luxury sports car, Certificate of Entitlement (COE) prices are also ever-increasing, further pumping up the prices for a to-be sports car owner.
Amidst the rising COE, as well as a greater variety of sports cars - from luxury to the slightly more accessible to the trendiest electric ones, read on to know more about how much it takes to finally become a sports car owner like you’ve always dreamed of.
COE Premiums for Open Category Reached the 100k Mark
Following the COE results release for June 2022, to-be car buyers may be dismayed at the latest bidding exercise, as COE prices for the Cat E (Open - All Except Motorcycle) category skyrocketed past the 6-figures mark, at a whopping sum of S$100,697. The Cat E category is where most luxury and sports cars fall in. Totalling the already expensive prices of sports cars with the increased COE premiums, buying a sports car in Singapore becomes all the more increasingly expensive.
Below are the newest COE results for all the 5 categories of vehicles, all of which experienced an elevation in the premiums.
COE prices have been so high all along, why are they still climbing and climbing, seemingly infinitely? The principal factor explaining this phenomenon would be the low and tight supply of COEs. For instance, for the open category (Category E), there were 316 bids received, competing for the quota of 190 available COEs offered.
Further upward pressure is also expected in the near future, taking into account the continually high demand for cars in the market. Demand for luxury and sports cars is also relatively high and elastic, hence, a rise in the COE premiums may not serve as enough of a deterrent for the rich, and bids would continue to increase in size.
Furthermore, the Singapore government also has a zero car growth objective in place, hence explaining why the quota is so low.
All in all, the constrained supply of COEs offered continues to be the pressing reason for the climbing COE premiums. With the COE premium already hitting the 100k mark, which is the highest since 1994, it is likely that COE premiums would break the nominal record set in 1994, where COE premiums reached S$110,500.
How Much It Takes To Own A Sports Car
With the latest nearly record-breaking COE prices, how much does it now take for you to own a sports car in Singapore?
The table below illustrates the prices (before COE) of the following sports car models, from quite expensive to very expensive, as well as the total price, with COE incorporated for consideration. We can see that with the sky high COE premium prices, it takes up almost ⅓ of the total amount to be spent.
Out of the 5 models below, the Porsche Cayenne E-Hybrid and BMW i8 2020 are electric cars, which are both trendy and could also appeal to the more environmentally-conscious consumer segment.
|Car Model||Approximate Price (before COE)||Total Price|
|Mazda MX-5 RF||S$234,888||S$335,58|
|Lamborghini Huracan Tecnica 2022||S$329,820||S$430,517|
|Porsche Cayenne E-Hybrid||$412,788||S$513,485|
|BMW i8 2020||$640,888||S$741,585|
|Bugatti Divo 2022||S$7,980,000||S$8,080,697|
A Closer Look At Sports Cars
Mazda MX-5 RF
The Mazda MX-5 RF is a relatively more accessible sports car model, but it boasts equally exquisite features as its more expensive counterparts.
With Mazda’s KODO: Soul of Design at its heart, this car has a balanced body, comfortable interiors, and a sleek and elegant exterior. With its prominent safety features, such as its Adaptive LED Headlights and Advanced Smart City Brake Support system in place, drivers can also drive with assurance that their safety on the roads is in check. All these features bring to light that this car model is indeed one for consideration, especially for those who prioritise comfort whilst driving.
Lamborghini Huracan Tecnica 2022
The Lamborghini Huracan Tecnica combines both impressive performance and striking beauty. As a sports car inspired by racing, the car’s exteriors are structured and designed with sharp lines to enhance its aerodynamics, making driving this car pleasurable and enjoyable. The striking lines and exterior architecture of the car are also distinctive and iconic to this well-loved car brand, making this car model one of the most desirable sports cars on our list.
On top of its impeccable design, the Lamborghini Huracan Tecnica also boasts Lamborghini Connect, an exclusive dashboard in the car which keeps the driver up-to-date with the functions on board, allowing for an engaging, enjoyable and peaceful ride whenever you are on the road.
Porsche Cayenne E-Hybrid
As an electric car, the Porsche Cayenne E-Hybrid allows drivers to incorporate sustainability into their daily living. However, performance is never compromised when it comes to Porsche, as even this sustainable model is still a sports car at its core.
With impressive top speeds and ease of driving over various terrains, the Porsche Cayenne E-Hybrid is indeed a great choice for many. Boasting a five-seater, it is also perfect for families. Just like all other Porsche cars, this car model is powerful and precise, and is certainly one to consider if you are thinking of purchasing a new sports car for yourself.
BMW i8 2020
The BMW i8 is part of BMW’s sustainability line, and boasts a beautiful and futuristic appearance, as well as being a hybrid car. There is a convertible version as well, and it is the only full plug-in hybrid drop-top in the car market. The i8’s pure electric range is around 18 miles, and this car offers both high efficiency and impressive power and performance.
The BMW i8 also boasts an incredible in-car system, with Apple CarPlay compatibility and a strong infotainment system complete with impressive audio and display screens. With the strong and beautiful appearance of this model, it is highly representative of BMW as a brand, and its hybrid efficiencies also give way to becoming a leader in the new market segment.
Bugatti Divo 2022
The Bugatti Divo is a car that offers maximum speed, with top-tier agility and dynamics. It is Bugatti’s first modern coachbuilt project, and is a sharp and athletic sports car with striking character. With exceptional craftsmanship, systems and engines which have been fine-tuned to perfection, the Bugatti Divo offers drivers the most exhilarating driving experience.
Sports Cars Are So Expensive, What Can I Do To Own One?
For the sports car enthusiasts who really want to own one, but find it difficult to fund such an expensive big-ticket item, there are a few ways to possibly get a sports car for a lower price, or to increase its affordability.
1) Shop for A Used Sports Car Online
A brand new sports car may be ridiculously expensive, but a used one may not burn such a large hole in your pocket. There are retail sites in Singapore, such as SG Car Mart and Motorist which offer buyers a chance to get their hands on some beautiful sports cars, some of which are in top-notch and pristine condition. Apart from their immaculate conditions, some cars also boast features like low mileage.
The best part is that the prices are much lower than if you were to walk into a luxury car showroom and purchase a brand new sports car from there. Trust us when we say that no one would be able to tell the difference between your brand new sports car and some of the best-conditioned used sports cars available online!
2) Wait For COE Premiums To Fall
While right now it seems like an impossibility for COE premiums to fall, it may happen in the near future. Currently, COE prices remain high and ever-rising, due to the lack of supply of COEs. However, industry watchers and experts opine that the premiums are expected to keep climbing at least until next year in 2023. When COE premiums start to stabilise or even take a slight dip, it may become the best time to finally purchase that dream car of yours.
3) Take Out A Car Loan To Finance Your Sports Car
A car loan could be the best way to ensure that you have the ready funds to afford a brand new sports car. If you are trying to search for some of the best car loans in Singapore to purchase or refinance your new car, it may be a wise idea to conduct some research first.
Many bank loans are available for cars and automobiles and trying to find the best one that is most suitable for you may sometimes be a hassle. Fret not! With our analysts’ comprehensive reviews and compilation of their top recommendation which can be found here, you would be sure to find the one that you need.
Here, we have picked out some of our top picks for the best and cheapest car loans available in Singapore.
Cheapest for New and Used Cars
OCBC Car Loan
OCBC offers a variety of car loans for both brand new and used cars. Offering a 2.28% p.a. interest rate, it boasts the cheapest car loan for new cars, and one of the cheapest loans for used cars in Singapore. With its competitive rates especially for new cars, OCBC car loans are indeed a great choice for those looking to buy a new car.
Furthermore, there are many premium features offered to OCBC customers as well, which greatly enhance the car loan approval process for you. For instance, instant (within 1 min) approvals and the ability to apply for the loan even before purchase of the car.
OCBC's car loans are available to individuals that are at least 21 years old, including Singaporean Citizens, Permanent Residents and foreigners residing in Singapore. To be eligible for OCBC's car loan refinancing product, borrowers must have had a car loan for at least 6 months with another bank. Additionally, the existing loan must have an interest rate of at least 2.4%. OCBC's refinancing plan covers 100% of existing loans. The bank also offers the maximum car loan sizes allowed by MAS at 60% or 70% based on the vehicle's value.
Best for Car Refinancing
DBS Car Loan
For applicants who are looking to finance a purchase of used cars, DBS charges the lowest interest rates for car loans in Singapore, offering an impressive 1.99%. On other fronts other than its low interest rates, the DBS car loans offer terms which are pretty similar to the majority of other car loans in Singapore. It offers applicants a maximum loan amount of 60% to 70% of the car purchase price (depending on the car’s value), and also offers the maximum loan tenure of 7 years.
With it being one of the cheapest options to finance your purchase of a car, the DBS car loan is surely one to keep in mind.
DBS charges the lowest interest rates for car loans for used cars (1.99%), making it the most affordable option for Singaporeans seeking to finance their purchase of a pre-owned vehicle. This rate is much cheaper than other car loans available in Singapore, and can save borrowers of hundreds of dollars over the course of a loan compared to other financing options. To make their pre-owned car loans even more competitive, DBS is currently offering a promotion that gives borrowers a rebate for 6 months worth of interest costs. This promotion can save most borrowers With that said, the bank's new car loan rates are less competitive, at 2.78% p.a.
Wait no further! If you would like to know more about car loans which offer an early repayment option, as well as loans which have shorter tenures, feel free to check out our webpage for our analysts’ reviews on the best Singapore car loans now. You could also fill up this car loan enquiry form and get to enjoy a facilitated car loan application process by us today.
Alternatively, you could also use our calculator to perform your own cost comparison of the various car loans offered by Singapore banks, and decide for yourself the car loan that is most suited for you and your needs when it comes to purchasing a sports car, amidst the rising COE prices here in Singapore.