Top Affordable Cars in Singapore: Best Buys Under $130,000

Are you looking to buy a car in Singapore but constrained by a tight budget?

This guide reveals the cheapest car in Singapore options available in 2025, all priced under $130,000.

We’ll explore a variety of vehicles to suit different needs and preferences, ensuring you find the perfect match for your budget.

Even if you’re searching for the absolute cheapest car in Singapore, this list is an excellent starting point for your research!

The Role of COE (Certificate of Entitlement)

In Singapore, the Certificate of Entitlement (COE) is a must to have vehicle ownership which allows one to own and use a vehicle on the road for the next 10 years. The COE system works under the Vehicle Quota System (VQS) to control the number of vehicles on the road. It aims to prevent excessive traffic and pollution.

COEs are allocated through open bidding exercises conducted twice a month. The number of COEs available is determined by vehicle deregistrations, plus adjustments for growth in the vehicle population. The current COE premiums can substantially affect the total cost of owning a car in Singapore.

GST Increase to 9% in January 2025, Affecting Overall Car Price

From 1 January 2025, Singapore’s goods and services tax (GST) raised from 8% to 9%. This will result in higher car prices and other goods due to increased costs. A S$100,000 car would incur an additional S$9,000 in GST for a total of S$109,000 (but only payable after a year). The increase in demand has caused a significant rise in prices for both news and old vehicles.

Environmental Incentives: EEAI Provides Rebates Up to S$15,000 for Fully Electric Cars

To promote cleaner energy vehicles, the Singapore government provides the Electric Vehicle Early Adoption Incentive (EEAI). From January 1, 2024, to December 31, 2025, any new fully electric car and taxi registered during this time period will get a 45% rebate off the ARF, capped at S$15,000.

To make electric vehicles more affordable and boost Singapore’s transformation towards cleaner energy models, the incentive has been introduced.

Diesel Vehicle Ban Since January 2025

Under the Singapore Green Plan 2030, the registration of new diesel cars and taxis stopped on 1 January 2025.

Vehicle owners that own diesel vehicles registered before this date are still allowed to renew their Certificate of Entitlement (COE). However, these vehicles must pay higher road taxes to discourage its usage.

Taxes and Fees to Consider

In Singapore, there are many taxes and fees that customers must bear when buying a car. This affects the ownership cost. To understand the overall ownership and operation costs of a vehicle in the country, one should be familiar with these costs.

Registration Fee (RF)

When registering a new car, the Registration Fee (RF) of S$220 needs to be paid once. All vehicles have to pay this fee, irrespective of their category or model.

Additional Registration Fee (ARF)

ARF is computed based on the Open Market Value (OMV) of the vehicle. The ARF is 100% of OMV for the first S$20,000, 140% of OMV for the next S$30,000 and 180% of OMV on any amount above S$50,000.

One of the bigger expenses involved in buying a vehicle is the ARF which is based on the OMV of the vehicle. The OMV of a vehicle refers to the purchase price of the car plus freight and insurance.

Excise Duty

In addition to the ARF, there is also an Excise Duty, which is 20% of the OMV. This duty is imposed on all vehicles imported into Singapore and adds to the overall cost of the car.

Goods and Services Tax (GST)

The GST is charged at the rate of 9% on the OMV plus the Excise Duty. Car buyers will see a rise in the overall price of their vehicles with the commencement of increased GST from 8% to 9% from 1st January 2025. If a car costs S$100,000, you will have to pay S$9,000 GST on top.

Certificate of Entitlement (COE)

The Certificate of Entitlement (COE) is another major cost. It is a compulsory element that gives you the right to own and use a vehicle on Singapore’s roads for 10 years. COE pricing is determined by demand and supply and is auctioned once every two months. The price of a Certificate of Entitlement (COE) can raise the overall cost of buying a car when demand is high.

Road Tax

Road Tax, another recurring costly expenditure, must be paid yearly. The road tax is determined based on engine capacity, that is, the more powerful the engine, the more tax.

Along with the above-mentioned essential costs, Singapore car owners will also need to take into account other expenses such as car insurance and its maintenance and repair. The car insurance premium varies according to the coverage and type. However, the car needs regular servicing and repairs to keep it roadworthy.

Criteria for Selecting Affordable Cars

While the sticker price is undeniably essential, true affordability in car ownership extends far beyond the initial purchase.

Some key factors to consider when selecting the cheapest car in Singapore that won’t break the bank in the long run:

1. Fuel Efficiency:

Fuel costs are a significant ongoing expense associated with car ownership. Selecting a fuel-efficient car can significantly impact your long-term budget.

Here’s why:

Lower Running Costs:

Every kilometre you drive translates to less money spent on petrol.

Cars with good fuel efficiency allow you to stretch your fuel budget further, freeing up resources for other expenses.

Reduced Emissions:

Fuel-efficient vehicles often have lower emissions, which could potentially qualify you for tax rebates or incentives offered by the government in Singapore.

Note:

Compare fuel consumption figures for different car models and prioritise those known for their efficiency.

Consider factors like engine size, transmission type, and hybrid or electric options if they fit your needs and budget.

2. Maintenance and Reliability

Unexpected repairs can quickly derail your car ownership budget. Here’s why focusing on maintenance and reliability is crucial:

Lower Repair Costs:

Reliable cars experience fewer breakdowns, saving you money on repairs and parts.

Look for car models with a proven track record of reliability and readily available spare parts at affordable prices.

Predictable Maintenance Costs:

Regular servicing is essential for any vehicle, but some require more frequent or expensive maintenance.

Prioritise cars with well-established service intervals and readily available service centres offering competitive rates.

Research common problems associated with different car models and consider reviews from owners who can provide insights into real-world maintenance experiences.

3. Resale Value

While not strictly a running cost, a car’s resale value can significantly impact its overall affordability.

Depreciation:

Cars inevitably lose value over time. However, cars with strong resale values depreciate slower, meaning you’ll get a higher return when it’s time to sell.

Smaller Loss:

A strong resale value minimises the financial loss you experience when selling your car. The recovered amount can then be used to purchase your next vehicle.

Note:

Popular car models with a proven track record of holding their value are generally good choices.

Research resale values for different car models you’re considering to determine how much value they will likely retain over time.

By prioritising these key factors—fuel efficiency, maintenance costs, and resale value—you can find the cheapest car in Singapore that’s affordable upfront and keeps your wallet happy in the long run.

Top 10 Cheapest Cars in Singapore Below $130,000

Looking for affordable cars Singapore? This curated list highlights the top 10 cheap cars Singapore 2025, each priced under $130,000.These cars offer a great mix of value, fuel efficiency, and practicality, making them ideal choices for anyone looking for a budget-friendly option.

1. Perodua Bezza 1.3 Premium X (A)

The Perodua Bezza continues to be one of Singapore’s most value-packed sedans. Known for its outstanding reliability and wallet-friendly upkeep, it offers a roomy cabin, generous boot space, and remarkable fuel efficiency. Ideal for first-time car buyers or daily commuters, the Bezza proves that affordability doesn’t have to come at the expense of comfort and practicality.

2. Mitsubishi Attrage 1.2 CVT (A)

A long-time favourite among budget-conscious drivers, the Mitsubishi Attrage delivers efficiency, space, and comfort at a fraction of the cost. Its compact size makes it perfect for city driving, while its large boot and smooth CVT transmission make longer journeys a breeze. The Attrage is a proven choice for those who value low running costs without sacrificing reliability.

3. Nissan Sylphy 1.6 Lite Facelift (A)

The Nissan Sylphy stands out as one of the most refined sedans in its price range. With its smooth performance, plush cabin, and modern safety features, it feels far more premium than its cost suggests. For drivers seeking a balance between comfort and affordability, the Sylphy remains an underrated gem on Singapore’s roads.

4. Opel Corsa 1.2A Turbo (Elegance)

The Opel Corsa brings European flair to the compact car segment. Its turbocharged engine provides zippy acceleration and responsive handling, making it a joy to drive in tight city streets. Despite its premium styling and refined feel, the Corsa remains attractively priced—perfect for drivers who want a touch of style without overspending.

5. Kia Stonic EX 1.0 T (A)

The Kia Stonic is a small crossover with big personality. Its sporty design, elevated ride height, and tech-savvy features make it a popular choice for young professionals and small families alike. With an affordable price tag and SUV-like versatility, the Stonic offers an excellent mix of function and fashion for Singapore’s urban lifestyle.

6. Mazda 2 1.5 Hatchback Standard (A)

The Mazda 2 continues to impress with its sharp handling and premium design. Compact yet confident, it delivers a sporty drive complemented by top-notch interior quality. Drivers who value reliability, aesthetics, and low ownership costs will find the Mazda 2 to be one of the best-rounded hatchbacks under $130,000.

7. Suzuki Swift 1.2 Standard (A)

Fun, efficient, and iconic—the Suzuki Swift is the go-to choice for those who want a spirited city car without stretching their budget. Its lightweight build and agile steering make daily driving enjoyable, while the proven 1.2L engine ensures excellent fuel economy. For urban dwellers, the Swift is as practical as it is playful.

8. Chevrolet Spark LT (A)

Compact yet surprisingly capable, the Chevrolet Spark LT is built for busy city life. It’s small enough to zip through tight traffic and park almost anywhere, but inside, it’s comfortable and well-equipped for its class. Affordable to buy and maintain, the Spark appeals to drivers who prioritise convenience and economy.

9. Hyundai Grand i10 Hatchback 1.2 A

The Hyundai Grand i10 is a dependable hatchback that blends practicality with modern design. It offers easy manoeuvrability, a comfortable interior, and user-friendly tech—ideal for daily commutes across the island. With its reputation for reliability and value, the Grand i10 continues to be a smart pick for cost-conscious motorists.

10. Renault Kwid Intens (A)

The Renault Kwid adds SUV-inspired styling to the compact segment, giving drivers a taste of crossover appeal without the price tag. Its elevated driving position and efficient engine make it ideal for navigating Singapore’s traffic with confidence. Affordable, stylish, and easy to own, the Kwid proves that small cars can make a big impression.

Comparative Analysis of the Listed Cars

When evaluating the top 10 cheapest cars Singapore for 2025, it’s essential to consider various factors that impact both the initial purchase and long-term ownership costs. In this comparative analysis on Price, Fuel Efficiency, Maintenance and Reliability, and Resale Value, you may have a better idea of which car suits you the best.

Price

Buyers usually first consider the price one is buying at. Of the listed vehicles, the Mitsubishi Attrage 1.2 CVT (A) is the cheapest at S$105,999. This makes it a great choice for those on a budget.

On the other hand, you have got the Perodua Bezza 1.3 Premium X (A) for S$128,999, which is also the cheapest car in Singapore with more offerings.

Fuel Efficiency

Fuel efficiency directly influences the cost of ownership. The Perodua Bezza 1.3 Premium X (A) tops the chart with a phenomenal fuel consumption figure of 21.0 km/L, thus making it a great city car. On the other hand, the Opel Corsa 1.2A Turbo (Elegance) has a lower fuel efficiency at 14.0 km/L despite a turbo engine.

Maintenance and Reliability

The maintenance costs and reliability of a vehicle matter for long-term ownership. Perodua and Suzuki are brands with low maintenance costs and high reliability. The Suzuki Swift 1.2 Standard (A) is, for instance, very tough and doesn’t need much maintenance.

On the other hand, European brands such as Opel may have higher maintenance costs due to more complex engineering and parts availability.

Resale Value

Resale value is how much of your money you can recover upon selling the car. Cars from brands that are known to be reliable–for instance, Mazda, Suzuki and several others–tend to hold their value much better than others. The Mazda 2 and Suzuki Swift will likely have good resale value. After three years in the market, the Mazda 2 will retain 50–65% of its value.

Opel and Renault may depreciate faster compared to Honda, but they still hold their value. Generally, reliable cars are those that sell at a quicker pace as well as still have value.

Conclusion

Selecting the cheapest car in Singapore requires careful consideration of your budget, needs, and driving habits. By analysing these ten contenders based on price, fuel efficiency, maintenance, resale value, and personal preferences, you’ll be well on your way to finding the car that fits your lifestyle. Remember, a test drive is always recommended to solidify your decision!

Frequently Asked Questions (FAQ)