Used vs New Car Calculator Singapore
Compare two actual car quotes over the same holding period. The calculator keeps each car’s financing separate and includes the loan settlement due at exit, so selling in year five does not silently turn a seven-year loan into a five-year loan.
Scope: enter the lender’s monthly instalment and the projected settlement at your exit date. This model does not derive a settlement from an advertised interest rate, predict resale prices or assess loan eligibility. Defaults are hypothetical examples, not current market quotes.
Cost over your holding period
Used: monthly cost equivalent
—New: monthly cost equivalent
——
| Component | Used | New |
|---|
Cash timing and exit debt
| Measure | Used | New |
|---|---|---|
| Upfront cash | — | — |
| Loan plus average running cost while loan is active | — | — |
| Instalments paid within holding period | — months | — months |
| Exit value after loan settlement | — | — |
| Net cash outflow over holding period | — | — |
A negative exit value after settlement means extra cash is needed to clear the loan. A monthly cost equivalent is an ownership comparison, not the instalment shown on a finance quote.
How the comparison works
Ownership cost = purchase price − gross exit value + financing cost through exit + fees + one-off costs + running costs.
Financing cost through exit = downpayment + instalments paid + loan settlement at exit − purchase price.
Net cash outflow = upfront cash + instalments paid + running costs − cash left at exit. Cash left at exit is the gross exit value minus the loan settlement. The two routes reconcile because principal reduces debt or becomes equity; it is not an extra ownership cost.
The model rejects a quote when the downpayment, instalments and settlement do not cover the purchase price. That catches a missing settlement amount instead of turning incomplete loan cash flows into fake savings.
Worked default example
The hypothetical used car costs S$112,075.00 over five years, or S$1,867.92 a month. The hypothetical new car costs S$136,787.40, or S$2,279.79 a month. Used leads by S$24,712.40, but that advantage depends on the entered S$45,000 exit value, S$20,000 loan settlement and S$10,800 annual running cost.
At exit, the used quote leaves S$25,000 after settlement and the new quote leaves S$43,100. Those figures are liquidity outcomes, not extra profit: the earlier downpayment and loan payments helped create that equity.
Enter financing from the quote, not from the headline rate
Car loans commonly advertise a flat rate. MoneySense explains that flat interest is calculated on the original loan amount and that its effective interest rate is higher than the advertised rate. Entering that flat percentage into a reducing-balance formula would distort the comparison. This calculator instead uses the lender’s instalment and the settlement amount expected at your exit date.
If you plan to sell before the loan matures, request a repayment schedule or settlement illustration and update it when the exit date changes. Early-settlement rebates, fees and contract terms can make a simple outstanding-principal estimate wrong.
Use one complete exit value
Enter the amount you expect to receive for the car before loan settlement. If a sale or deregistration estimate already includes PARF, unused COE and body value, do not add them again. LTA states that unused COE rebate is pro-rated and that PARF eligibility and percentages depend on the car’s age and registration cohort. Its revised schedule for cars registered from the second February 2026 bidding exercise means two cars bought today can carry different future rebate structures.
Use LTA’s rebate enquiry for a known vehicle and intended deregistration date where available. For a future new car, treat exit value as an assumption and run a lower-value stress case.
Build a fair used-versus-new scenario
- Compare substitutes. Use cars that meet the same transport need rather than a basic used car against a much larger or better-equipped new car.
- Keep repair risk visible. Put immediate work in one-off costs and expected recurring maintenance in annual running costs. Do not count the same repair twice.
- Include different insurance and servicing costs. A new car can have lower repair uncertainty but higher insurance or authorised-workshop costs.
- Stress the exit. Lower the used-car exit value, increase its running costs and update its settlement. If used still leads clearly, the result is more robust.
- Check cash timing. A lower total cost can still require more upfront cash or leave negative equity at an early exit.
Frequently asked questions
Why does this calculator ask for the loan settlement at exit?
If you sell before the loan ends, part of the sale proceeds must settle the remaining loan. The settlement changes exit cash and prevents a short holding period from being treated as a shorter loan.
Should the exit value include PARF and COE rebates?
Use one gross sale or deregistration value that already includes any rebates and body value reflected in the quote. Do not add the same rebate again.
Can I enter a flat interest rate?
Enter the lender’s monthly instalment and expected settlement amount rather than an interest rate. This lets the calculator use the quoted cash flows without treating a flat rate as an effective rate.
Does the lower modelled cost identify the better car?
No. The result compares the entered costs. It does not verify condition, reliability, warranty coverage, safety, suitability or finance eligibility. Use the inspection checklist and records checklist before relying on a used-car scenario.
Sources & references
- MoneySense — flat-rate borrowing, effective interest and repayment schedules
- LTA — PARF and COE rebate rules
- LTA — enquire about PARF and COE rebates for a registered vehicle
Last updated: 21 Sep 2026 · Editorial Policy · Advertising Disclosure · Corrections