Not financial advice. Figures are simplified decision models (not quotes, approvals, or recommendations).
The most common Singapore car mistake is using the loan instalment as “the monthly cost”. Instalments are just how you pay. The true monthly cost is driven by depreciation (often COE-driven), plus financing drag, insurance, fuel, maintenance, parking/ERP, and the opportunity cost of upfront capital.
Use this page for two things:
If you want the full capital lens (5-year exposure), use Cost of Owning a Car (5-Year Breakdown). If you want the “should I own at all?” decision lens, use Is It Worth Owning a Car?. If you want the “instalment trap” explanation, read the financial mistake most people don’t see.
These are planning bands, not quotes. Your actual number depends mainly on depreciation profile (COE cycle + holding period), loan size/tenure, insurance pricing, and mileage.
Fast decision check: If your ride-hailing spend is consistently in the same band, ownership may be rational.
Run: Car vs Ride-Hailing Break-Even Calculator.
If you’re close to break-even, you’re in the grey zone. Decide using logistics certainty + liquidity stress, not cost alone.
Want to stress-test your own numbers?
Use the Car Affordability Calculator (Advanced) to model depreciation, loan drag, insurance, fuel, maintenance buffer, and opportunity cost — and see whether your ownership profile is Safe, Grey, or Financially Fragile.
Most people underestimate monthly cost because they ignore depreciation and opportunity cost. If you want the full 5-year structure behind these components, use: Cost of Owning a Car (5-Year Breakdown).
In Singapore, depreciation dominates because COE is embedded inside it. The clean way to estimate your monthly depreciation is:
Not sure how to estimate it? Read car depreciation in Singapore and then plug the number back into your monthly model.
Depreciation per month = (Purchase price − Estimated resale value) ÷ months held
This is why holding period matters. Short holds can create “expensive months” even when instalments look fine.
Example: If a car costs $150,000 and its projected value after 5 years is $80,000:
$70,000 over 60 months → ~$1,167/month
If you want the COE-specific explanation of why this happens: COE Cost in Singapore (2026). If timing is part of your decision, read: Buy Now or Wait? (COE timing framework).
Financing adds interest drag, and Singapore car loans are often quoted using flat rates (not true effective interest). Depending on loan size and pricing, interest can add:
~$200–$600 per month
If you’re borrowing, read this before comparing offers: Car Loan Rates in Singapore (Flat vs Effective Interest).
Typical comprehensive insurance:
$1,500–$2,500 per year → ~$125–$210 per month
Age, claims history, workshop choice, and car repair exposure can move this significantly. Full breakdown: Car Insurance Cost in Singapore.
Fuel is mileage-driven. A practical planning band for many private drivers:
$250–$450 per month
Treat this as a budget band unless you track mileage precisely.
For a quick model (cost per km × mileage) and scenario table, see Fuel Cost in Singapore. If you’re deciding between drivetrains, see EV vs petrol cost (running costs + break-even).
Averaged over time (servicing, tyres, wear-and-tear), many owners land around:
$100–$250 per month (averaged)
The real issue is volatility. One repair month can be 6–12 months of “average”. If you’re deciding used vs new to control volatility, see: Used vs New Car in Singapore.
Most buyers underprice repair spikes. Structure your buffer properly here: Car Maintenance & Repair Cost (realistic monthly buffer model).
Season parking + workplace parking + incidental parking often lands around:
$150–$350 per month
Parking varies by home + work patterns. For a clean breakdown and monthly bands, use: Parking Cost in Singapore. ERP depends heavily on route and peak-hour frequency; for a simple daily→monthly model, use: ERP Cost in Singapore.
Even if you pay cash, ownership has a capital cost: your downpayment (or full purchase amount) could have been invested elsewhere.
Example: If you commit $40,000 upfront and assume a 5% annual return elsewhere:
~$2,000 per year → ~$167 per month
This is commonly ignored, but it is financially real. The bigger the upfront capital, the bigger the hidden monthly cost.
| Category | Estimated Monthly Cost (SGD) |
|---|---|
| Depreciation | $1,000 – $1,400 |
| Loan Interest | $200 – $600 |
| Insurance | $125 – $210 |
| Fuel | $250 – $450 |
| Maintenance | $100 – $250 |
| Parking & ERP | $150 – $350 |
| Opportunity Cost | $100 – $200 |
| Total Estimated Monthly Cost | $1,925 – $3,460+ |
This table is a planning band — not your exact number.
Run your personalised version here: Advanced Car Affordability Calculator.
If your result falls in the “Grey” zone, ownership is workable but fragile. If it falls in “Red”, your cashflow buffer may be thinner than you think.
Planning rule: If you want a conservative “don’t get surprised” number, plan for ~$2,500–$3,000/month all-in unless your depreciation profile is unusually low.
Liquidity matters too (downpayment + buffers). Use: How Much Cash Do You Need to Buy a Car? · Salary gate: How Much Salary Do You Need to Own a Car?
Once you have your true monthly cost, the comparison is simple:
Run the clean check: Car vs Ride-Hailing Break-Even Calculator
If your decision is also about timing, read: Should You Buy a Car Now or Wait? · If you want the “worth it” decision framework: Is It Worth Owning a Car?
Budget gate (monthly realism)
Decision gate (worth it)
A realistic all-in monthly cost commonly ranges from about $1,900 to $3,500+ depending on depreciation/COE exposure, financing, insurance profile, and usage.
No. Instalments are only a payment method. True monthly cost includes depreciation, interest, insurance, fuel, maintenance, parking/ERP, and opportunity cost of upfront capital.
Because COE is embedded inside depreciation exposure. The value you consume over time (COE decay + car value loss) often dominates monthly cost, especially over short holding periods.
A practical break-even zone is often around $2,500–$3,000/month depending on your ownership profile and depreciation exposure. Use the break-even calculator to check your own number.