Understanding car depreciation in Singapore

When shopping for a pre-owned car in Singapore, the sticker price tells only half the story. What truly determines your cost of ownership is the depreciation - the amount the car loses in value each year.

Depreciation is the difference between what you pay today and what the car will be worth when the COE expires, divided by the years of COE remaining. A lower depreciation means a lower annual cost of ownership.

Two cars at the same price can have very different depreciation depending on COE remaining, OMV, and PARF rebate. The car with lower depreciation costs you less per year to own.