Are you spending a little too much on your car?
Sometimes it may happen that you are spending a lot of money on your car than you are supposed to. If you are such a person and you are looking for a way to reduces such expenses, you should not worry as below is a list of the major mistake that many car owners make. Some of the ways that can make you spend a lot of money on your car are:
High-interest car loan repayment
Since it is expensive to buy a car in Singapore, many people who wish to buy a car usually take car loans from banks or other financial institution to finance it. Some try to go to car rental companies such as BizLink Rent-A-Car to request for short and long term car rental.
Experts have revealed that you can save a lot of money by financing the car loan with institutions that offer low-interest rate car loans. For example, if you take your loan of $ 70,000 for five years from OCBC you can save over $3,000 as they offer an interest of 2.78 %. There are also many other companies in Singapore that offer low-interest rate loans; it is upon you to make an effort in researching them before you choose one.
Paying for petrol
In case you own a car in Singapore, and you pay for petrol with cash or you are not rewarded after you have bought petrol there is something that you should know. For instance of you use a petrol credit card such as Citi cashback credit card or HBSC visa platinum card you will be able to get over 20 % discounts, cash back and earn air miles for the petrol that you have bought. Such benefits can assist in reducing the amount of money that you spend in paying for petrol at the petrol station.
Paying car insurance premiums that have inflated
It is obvious that when you buy a car in Singapore, you have to buy a car insurance plan from a dealer who may be having a deal with as insurance company. Something that you may not know is if you may be required to pay more premiums if you decide to lengthen the period of the insurance with the company.
Experts have revealed that many car insurance premiums that are sold by car dealers can be 50 % more expensive compared to the one that you can buy from other companies. It is therefore good that when you are required to renew the insurance premium, you conduct some research to be able to see the level of competition. By doing this you can find a company that offers cheap premiums at a lower rate, therefore save a lot of money.
Spending a lot of money is servicing and maintaining the car
If you have a car, you will probably know that many reasons can make you take your car to the dealer so that he/she can repair and service it but the idea of reducing the cost cannot be one of them. Car experts have revealed that one save up to $1000 for five years by just taking his/her car to be serviced in s third-party garage instead of taking it to the authorized workshop.
One thing you should not forget is that if you have bought a car and you are given a three-year warranty, and this warranty is not over you will be required to take the car to the authorized workshop to be serviced or repaired so that your warranty can continue to be valid. In some cases, you will be offered free maintenance services by the authorised dealers during this period if you take your car to them. During these three years, you can save a lot of money. It is that when you are seeking car rental services you get a car whose condition is good so that you spend a lot money in repairing it each and every time.
Driving at peak hours through congested routes
The Singapore government uses an electronic road toll system that can monitor vehicles on the road. If you are found driving at peak hours through roads that are highly congested, you will be charged. Although anybody who drives in Singapore will be required to pay ERP tolls, for you will be required to pay more. It is therefore good if you take your time to research on the alternative roads where you will pay fewer tolls so that you can minimise the amount that you pay.
Although the amount of money that you will save each day will be small, if you continue saving it daily you will find that you have saved a lot of money. It is therefore important that you look at the time you will spend driving on the congested roads and the money that you will be saving.
If you have an interest in knowing the routes that you can drive with less toll fare and still to where you are going you can see the local authorities. They have a map where you can see registered roads on the ERP and fares charged when you drive. You can also see these map online on the website of the local authorities.
Allowing your tax road to expire
If you wait until your tax road expires so that you can renew it, you will probably be wasting a lot of money. Any new driver who may keep using his/her car with a road tax that is not valid he/she can be prosecuted the road traffic act in Singapore on section 15 and be forced to pay a fine of $ 2,000 when convicted. Also if you wait for the road tax to expire so that you can renew it, you will be required to pay a lot of late fees when you renew it. If you also have a vehicle that has a large engine capacity, you will be required to pay more tax road.
Some of the road taxes that you may be required to pay if you tax expire are:
For corporate cars with an engine capacity under 300c within the first month of the date of expiry, you will pay $ 10, between 1 and 2.5 months of the date of expiry ( $30), more than 2.5 months( $45) and over six months( $125).
For motorcycles with an engine capacity under 300c up within the first month of the date of expiry, you will pay $ 10, between 1 and 2.5 months of the date of expiry ( $60), more than 2.5 months( $45) and over six months( $225).
For private cars with an engine capacity up to 1,000cc within the first month of the date of expiry, you will pay $ 10, between 1 and 2.5 months of the date of expiry ( $60), more than 2.5 months( $75) and over six months( $225)
For private cars with an engine capacity between 1001- 1,600cc within the first month of the date of expiry you will pay $ 20, between 1 and 2.5 months of the date of expiry( $70), more than 2.5 months( $85) and over six months( $235.