Owning a car: How to get some savvy savings

SINGAPORE — First, the bad news that you already know: Owning a car in Singapore is an expensive proposition.

The good news is that with a healthy dose of common sense, the cost of car ownership can be minimised.

Being a discerning driver doesn’t just mean choosing the right colour or accessories for your ride. It also entails making astute ownership decisions that will reduce costs and pay off — literally, in some cases — in the long run.

Wax on, wax off

Remember that classic teen movie, The Karate Kid? Remember how Mr Miyagi made Daniel-san learn key defensive karate blocks by performing menial tasks repeatedly? And how “wax-on, wax-off” formed the basis for Daniel-san’s epic, crane-pose victory over the movie’s chief bully?

Well, cleaning your car regularly is a little like that: It may be unglamorous and at times downright laborious, but it serves a greater purpose that benefits you in the long run.

Keeping your car shiny and cleaning off bird droppings may not sound like fun. But it helps your paint finish last longer and it reduces the odds of you having to respray your car later on. You’ll also spend less as you won’t be paying other people to wash your car and you can get some exercise in the process.

In the long run, having a car that’s obviously well looked after should help you get a better price should you decide to trade in your existing car for a new model.

Cartilage for cars

Modern cars are so reliable they practically take care of themselves, right? That’s partially true, because you also have to do your part by not skimping on maintenance.

Budgeting for your car’s maintenance may not be as sexy as say, budgeting for a blingworthy set of rims or in-car entertainment system. But paying attention to service intervals means that your precious ride won’t be all show and no go, literally.

Let’s say you skip your car’s scheduled oil change because you think you know your car better than any mechanic. What could possibly go wrong?

Plenty, if you’re not careful.

If petrol is your car’s lifeblood, then oil is like the cartilage that keeps everything running smoothly. It lubricates the moving parts in your engine and helps dissipate heat.

As engine oil moves through the engine’s thousands of delicate components, it also picks up dirt and impurities.

If the engine’s oil isn’t changed, it eventually becomes too dirty and will not be able to fulfill its primary purpose. This causes parts to wear out faster than usual, and could, in extreme cases, lead to the engine seizing and a costly rebuild.

And because the damage was caused by your negligence, you’ll probably have to fork out for repairs yourself. Factor in the inconvenience and cost of taxi fare or renting a car while your ride is in the shop, and suddenly saving a few dollars on maintenance doesn’t seem like such a good idea.

Fuel frugality

One of the easiest ways to reduce your running costs is to use less petrol. There are several ways you can do this, and the good news is you won’t need to drive like a grand-dad on a slow Sunday drive.

Before you leave, check traffic conditions on an app. If traffic is heavy on your usual route, you still have time to find an alternative. Setting off 10 to 15 minutes ahead of schedule means you won’t be rushing to make up for lost time, which saves fuel and reduces the risk of you being involved in an accident. If there are unexpected delays on our journey, this also gives you a buffer so you can still go easy on the accelerator.

On the road, don’t become fixated on the boot of the car ahead, even if it has the most awesome carbon-fibre rear wing. Looking further up will help you spot obstacles like road works or a broken-down vehicle. It will then be easier to filter to a clear lane so you can enjoy unimpeded motoring progress.

Being more upfront

This may sound counterintuitive, but one way to save money is to spend more initially. Placing a bigger downpayment means that you will need a smaller bank loan and spend less on interest payments.

If the monthly loan repayments are still comfortably within your budget, you could opt for a shorter loan tenure. While you do spend more per month, the overall amount spent will still be less as you pay less interest overall.

Pooling power

You and your colleagues may all own cars but that doesn’t mean everyone has to drive out to lunch individually. Convoy driving may make you feel like you’re part of a pack, but taking turns to car pool to your favourite cafe will help you save on petrol and parking costs.

It also helps create a virtuous cycle — using your car less often reduces general wear and tear, which helps cut maintenance costs in the long run. And think about all those fun post-lunch car-pool karaoke sessions you’ll have.

You could even car-pool with your office buddies. Who wouldn’t mind a relatively small fee each month to help offset fuel costs, in exchange for an air-conditioned ride to work?

Ride sharing

The sharing economy has created new opportunities for everyday Joes to turn entrepreneurs. In the case of ride-sharing apps like Uber, for instance, it gives car-owners the chance to earn money off their vehicles by offering rides to passengers in need.

Do note that this isn’t for everyone. If you have a regular office job, your boss may get suspicious if you keep having to attend to “family emergencies” during peak periods or whenever there’s heavy rain.

Think small

There’s an old motoring adage that goes: “There’s no replacement for displacement”, which means there’s no substitute for the driving pleasure brought on by the power and deep rumble of a large-capacity, high-revving engine.

But tightening emissions regulations and advances in turbo- and supercharging mean that even engines in higher-end cars are becoming smaller and more efficient.

At the bread-and-butter end of the motoring scale, more manufacturers are offering cars with small-capacity turbocharged engines that usually range in size from 1.0 to 1.4 litres. These produce similar amounts of power and more torque than normally-aspirated, Category A, COE-friendly 1.6-litre engines.

This helps you save money in several ways: Your car will qualify for a Cat A COE (for engines that are 1.6 litres or smaller and produce less than 130hp), which usually costs less than Cat B or Cat E COEs. You’ll also save on road tax and probably enjoy a higher CEVS (Carbon Emissions-Based Vehicle Scheme) rebate than a car equipped with a larger, normally aspirated engine.

Shop around

When it’s time to renew your insurance, don’t just accept what your current insurer offers you on good faith. You may have been loyal to the same company for years, but that doesn’t mean it has the most competitive insurance package every year.

Take the time to explore other options, but be sure to read the fine print because not all policies are created equal. For instance, that super-cheap policy you find may be subject to annual mileage limitations. If you exceed those limits, you may be required to pay a penalty or a top-up fee to extend your coverage.