5 Cars With $10,000 Tax Rebates You Can Get in Singapore
July 1st 2018 marks the first day that newly-registered cars will come under the Vehicular Emissions Scheme (VES). This could mean large tax rebates or surcharges based on the amount of pollutants released from your car. Basically, the scheme offers rebates in order to encourage drivers to switch to less pollutive models. For potential new car buyers, this can be a savings or discount of up to $20,000, depending on the choice of your car. Here’s what you need to know about the scheme, and 5 cars that you may consider if you want to save some money.
Vehicular Emissions Scheme (VES)
The aim of the new VES is to reduce not only carbon emissions, but also four other pollutants (hydrocarbons, carbon monoxide, nitrogen oxides, and particulate matter), which get released into the environment when a car is driven.
Under the VES, you may enjoy a rebate or pay a surcharge depending on your vehicle’s emissions.
The worst performing pollutant will determine your vehicle’s band and its corresponding VES rebate or surcharge. Under the VES, if you register a car under bands A1 and A2, you will qualify for an emission rebate which will be used to offset the car’s Additional Registration Fee (ARF). If you register a car under bands C1 and C2, you will have to pay an emission surcharge.
Source: Land Transport Authority
Since cars are known to be very expensive in Singapore, you can imagine many car buyers might want to choose a model where they will be entitled to the maximum rebate of $20,000. However, to qualify for the $20,000 rebate under the new scheme, cars must have a particulate matter (fine soot) reading of zero. Currently, even the cleanest of cars with combustion engines will emit a small amount of particulate matter, which means none will qualify for the top-tier rebate. Only pure electric cars, which do not have tailpipes, will qualify for the $20,000 rebate. Currently, the Hyundai Ioniq Electric is the only mass market electric model available here.
The good news is that there are still a number of cars that qualify for the second-tier $10,000 tax break though. $10,000 is still a sizable amount, so if you want to save some money buying a new car, you might want to consider one of the car models below:
A compact sedan with outstanding fuel efficiency of 20.4km/ℓ. The Mitsubishi Attrage is not only graded VES band A2, it also comes with an attractive exterior with surprising roomy interiors. Overall, a great car which is also eco-friendly.
List Price: $76,000
Toyota is a well-loved brand amidst car buyers in Singapore and while many of the car models fall unfortunately in the VES banding category (surcharge of $20,000), the Toyota Prius is one of the few models under the brand where you are entitled to a $10,000 rebate. This 7-seater MPV works great for those who wants a bigger car to ferry the family around. With versatile seating configurations and storage options, it makes for the perfect car to take your friends and family for a road trip. With the Toyota Hybrid Synergy Drive, you’ll also get to enjoy savings from its excellent fuel efficiency and extended mileage.
BMW 2 Series 225Xe
To meet the needs of a changing environment, luxury carmaker BMW has introduced a range of Plugin Hybrids. The 225Xe provides drive to the front wheels with all the assurance of a petrol-engined car, and added range, delivered from electric motors driving the rear wheels. Introduced as part of the BMW 2-Series Active Tourer, the car is what you’d expect - modern, sleek and a combination of family utility, value for money and brand desirability.
Honda Jazz 1.3 Hatchback LX
Honda Jazz remains a popular compact hatchback and one of Singapore’s best cars on sale since its launch in 2014. The improved version, the Honda Jazz 1.3 Hatchback LX, gets a slight change in its front end, but retains its impressive boot space and spaciousness.
Nissan Note 1.2
The Nissan Note 1.2 is a simple car that’s known more for its utility rather than style. Nonetheless, it makes for a value-for-money ride with improved drivability and surprisingly comfortable legroom for a small car. The car also comes with a number of nice-to-have features - push-button ignition, an idling stop system to reduce fuel consumption and Hill-start assist that prevents the car from rolling back when it is pulled off on the sloping ground. Overall, the Nissan Note is a good and affordable car choice for younger buyers who need a stylish and cheap urban cruiser with good fuel economy.
As you veer towards cleaner car models that help you save money on car cost, remember to get yourself protected with the right car insurance to keep you safe on the roads as well! Nothing beats the on road peace of mind you get from being protected by a comprehensive car insurance policy. Ask for a free quote with DirectAsia today!