In Singapore, the “cheapest car” is rarely the one with the lowest monthly instalment. Instalments are just how you pay. The true cost is usually dominated by depreciation (COE embedded), plus running costs and volatility risk.
Use this page for two things:
If you want the baseline model behind everything here: 5-Year Car Ownership Breakdown. For the monthly budgeting lens: True Monthly Cost of Owning a Car.
The cheapest car to own is the one with:
Want to calculate which profile is actually cheapest for you?
Use the Car Affordability Calculator (Advanced) to model depreciation, financing drag, maintenance buffers, and opportunity cost — and see whether your “cheap” choice is truly low exposure or financially fragile.
If you’re deciding “car vs ride-hailing” first (often the correct first decision), run: Car vs Ride-Hailing Break-Even Calculator.
The correct way to compare cars is a holding-period exposure model:
5-year total exposure (simplified) =
Baseline reference: 5-year ownership breakdown. Monthly reality check: true monthly cost.
If you catch yourself thinking “instalment looks okay”, read: the instalment trap most buyers don’t see.
Instead of naming one “cheapest car”, here are the ownership profiles that most often produce low total exposure. These are examples by category (not quotes). Always validate with real listings, loan offers, and insurance quotes.
| Profile (what “cheap” looks like) | Why it can be cheap | Main risk |
|---|---|---|
| Mass-market Japanese/Korean sedan or hatchback Example: 1.3–1.6L mainstream segment |
Often strong demand → better resale liquidity; predictable maintenance; insurance usually manageable | Overpaying entry price during high COE cycle can erase “cheap” |
| Used car with strong COE runway Example: 3–5 years old, with runway that clearly covers your hold |
You avoid the steepest early depreciation while still keeping reasonable runway | Hidden repairs / accident history / weak liquidity if model unpopular |
| “Disciplined ownership” baseline Example: low extras, controlled mileage, long-ish hold |
Cheap happens because you reduce optional costs and avoid frequent switching | People fail the “holding discipline” and exit early |
| COE renewal (only in specific cases) Example: stable car + long hold after renewal |
Can avoid switching into a fresh depreciation curve | Repair volatility + downtime risk if the car is ageing into a fragile phase |
For used vs new in full: Used vs New Car (5-Year Framework). For COE renewal decision: Should You Renew COE?
Used is not “automatically cheaper”. Used is cheaper only when the price-to-runway is sensible and maintenance volatility is controlled.
Used tends to be cheaper when:
If you want a realistic monthly repair buffer model, see: Car Maintenance & Repair Cost in Singapore (buffer planning guide).
Used becomes expensive when:
Full decision breakdown: Used vs New Car (Singapore 2026).
COE is embedded inside depreciation. That means “cheap” depends heavily on: COE level × holding period × exit liquidity.
Structural explanation: COE Cost in Singapore (2026). Timing framework: Buy Now or Wait?
Practical takeaway:
Before you call it “cheap”, confirm:
For affordability guardrails: Salary reality check · Upfront cash planning: How much cash do you need?
Final check before committing:
Run your exact numbers through the Advanced Car Affordability Calculator.
A car can look cheapest on paper — but become expensive if depreciation timing, repair volatility, or liquidity risk is mispriced.
The cheapest-to-own car is usually the one with the lowest total exposure over your holding period: depreciation (COE embedded) plus running costs, with acceptable reliability and resale liquidity.
Not always. Fuel can be lower, but depreciation dominates in Singapore. A small car can still be expensive if entry pricing is high or resale liquidity is weak.
Not always. Used is cheaper only when the price-to-runway makes sense and repair volatility is controlled. Compare properly here: used vs new framework.
Deciding using instalments instead of true cost. Start with: true monthly cost and 5-year exposure.