Singapore Used Car Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Singapore Used Car Market Trends and Insights

Escalating Cost of New-Car Ownership

COE premiums for Category A fluctuated from SGD 65,010 in January 2024 to SGD 99,500 in April 2025, a swing that positions late-cycle used cars as cost-effective substitutes for many households. The Additional Registration Fee (ARF) can equal 180% of a car’s Open Market Value, widening the price delta between new and used units. Buyers increasingly value cars with longer COE validity because the amortized monthly cost still undercuts fresh COEs. 

Rapid Expansion of Online-to-Offline Marketplaces

Carro reached a USD 1.5 billion valuation in 2024 and recorded its first operating profit, proving that end-to-end digital transaction models can scale profitably.^{[1]Carro, “Carro Achieves Unicorn Status,” carro.sg} Motorist.sg—backed by Tokyo Century Leasing—serves about 15% of Singapore vehicle owners through its “Super App,” integrating telematics, finance, and resale listings. Both platforms deploy algorithmic valuation to cut negotiation times and offer instant disbursement, catalyzing an 8.31% CAGR forecast for online bookings. Transparent vehicle history, standardized inspections, and seven-day return policies build trust among buyers who historically preferred tactile inspections at physical yards.

High Depreciation Rates Encourage Earlier Disposals

Singapore’s 10-year COE lifespan compresses depreciation curves, prompting many owners to sell vehicles around Year 7 before renewal fees spike. Transfer data shows 102,140 used cars changed hands in 2024, up 7.4% YoY. The Early Turnover Scheme (ETS) delivers additional rebates for diesel-vehicle owners disposing of cars ahead of the 2025 diesel registration ban. Inventory acquisition costs fall for dealers, who then pass part of the savings to buyers while preserving margins, supporting healthy turnover for the Singapore used car market.

EV Early-Adopter Incentives Spurring ICE Trade-ins

The Enhanced Vehicular Emissions Scheme (VES) offers up to SGD 40,000 rebates, and ARF rebates up to 45% apply to full EVs until December 2025.. As EVs grabbed 4% of Singapore’s car parc by end-2024, residual values on comparable ICE models came under pressure. Chinese EV OEMs elevated competition: BYD alone shipped 3,002 units in the first four months of 2025, equal to 20% of new registrations.^{[2]BYD, “BYD Singapore Sales Update Q1 2025,” byd.com} Owners fearing accelerated ICE depreciation thus rush to trade in, ensuring a steady flow of younger-vintage ICE stock for the secondary channel.

Stringent Import & Emission Regulations

Used vehicles older than three years cannot be registered, and Euro VI emission norms apply to all units, sharply constraining the eligible supply. Import duty of 20% on Open Market Value plus 9% GST marginalizes price benefits versus domestic stock. The January 2025 diesel ban further narrows product diversity by eliminating an entire fuel category. These rules limit the breadth of inventory that dealers can offer, capping potential volume expansion within the Singapore used car market.

Rise of On-Demand Mobility & Car-Subscription Services

Grab’s June 2025 debut of GrabCab with a 40-unit hybrid fleet augments the menu of pay-per-use transport options.^{[3]Grab, “GrabCab Launch Press Release,” grab.com} Subscription offerings grant flexible access without COE exposure. As availability widens, some younger consumers rationalize that mobility-as-a-service offsets the prestige of ownership, softening incremental demand for the Singapore used car industry over the medium term.

Segment Analysis

By Vehicle Type: Sedans Anchor Volumes, SUVs Accelerate Upside

Sedans held 43.13% of the Singapore used car market share in 2024 because compact dimensions suit urban parking norms. The Toyota Corolla Altis and Honda Civic routinely top transfer charts thanks to proven reliability and strong residuals. However, changing lifestyle expectations nudge consumers toward SUVs & MPVs, which are forecast to grow at an 8.32% CAGR to 2030. Increasing availability of battery-electric crossovers such as the BYD Atto 3 at SGD 165,888 makes the segment more attainable, while perceived safety and cargo flexibility resonate with young families. Improving charging coverage—13,800 public points as of 2024—further underpins EV-SUV demand. Hatchbacks, at 16.37% share, thrive among price-sensitive commuters who value maneuverability in congested districts like Tanjong Pagar. Coupe and convertible volumes remain niche because road-tax brackets and limited roof-down weather dampen appeal. 

Given the affluent demographic tilt and rising EV penetration, the Singapore used car market size for SUVs & MPVs is projected to deliver an incremental USD 0.55 billion by 2030. However, mature sedans retain relevance through fleet recycling from ride-hailing operators that prefer fuel-efficient platforms. Dealers hedge stock risk by bundling maintenance packages on aging sedans to sustain turnover. Regulatory clarity—no differentiation in COE between body types—ensures that product mix shifts reflect pure consumer preference rather than policy biases, keeping competitive positioning fluid.

Note: Segment shares of all individual segments available upon report purchase

By Vendor Type: Organised Dealers Consolidate Trust Premium

Organised dealers captured 65.71% of the Singapore used car market share in 2024, buoyed by showroom warranties, integrated financing, and COE handling services. Stringent consumer-protection rules enacted in 2024 demand transparent accident history disclosure, favoring enterprises with the capital to adopt digital inspection systems. The organised cohort’s 7.83% CAGR through 2030 stems from scale economics: bulk purchases at auction secure superior inventory, while cross-selling insurance and refinancing bolster margins. Many operators deploy omnichannel strategies—online listings complemented by test-drive concierges—that marry digital convenience with tactile reassurance. 

Unorganised sellers confront structural headwinds. Individual listings on classifieds face credibility gaps without third-party inspections, and financing often requires external coordination, creating friction. High COE costs occasionally push sellers to private channels seeking higher recovery values, ensuring a residual 34.29% share. The size of the Singapore car market tied to unorganised trade is unlikely to expand because regulatory compliance costs disproportionately burden small-scale operators. Fintech marketplace tie-ups further crowd out informal actors by offering instant loan approval, something private sellers cannot replicate quickly.

By Booking Type: Digital Pathways Rapidly Scale Adoption

Offline yards dominated 67.34% of 2024 transactions, as many buyers still insist on physical inspections before transferring large sums. Yet, the convenience of browsing inventory and obtaining indicative valuations from home propels online bookings at an 8.31% CAGR. Carro and Motorist.sg introduced seven-day money-back guarantees, reducing buyer anxiety and encouraging remote purchases. Younger cohorts—accustomed to bank-grade e-payment safeguards—drive digital penetration higher, particularly for sub-USD 80,000 listings with lower price sensitivity. 

Traditional yards respond by deploying virtual-reality showrooms that provide 360-degree tours, enabling preliminary screening before on-site visits. The Singapore used car market size transacted end-to-end online remains small but growing; hybrid models that allow reservation deposits online and final settlement on-site currently dominate the digital channel. High average ticket values and the logistical need for COE transfer at the Land Transport Authority service centers still anchor certain steps offline, signaling that a blended model will persist rather than a wholesale shift.

By Fuel Type: Gasoline Still Reigns, EVs Catch Up Fast

Gasoline units retained a 61.29% share in 2024, reflecting an abundant supply of five- to seven-year-old Japanese sedans that appeal to value-oriented commuters. Nonetheless, electric vehicles log a 7.88% CAGR as government policy tilts decisively toward full electrification by 2030. EV subsidies lower the effective purchase price of three-year-old Teslas and BYD crossovers enough to dent price elasticity concerns. Hybrid-electric vehicles, which captured a 14.31% share, bridge the transition for households lacking home chargers, especially in older HDB blocks awaiting charger retrofits. 

Diesel’s short-dated future—new registrations ceased in January 2025—creates a shrinking addressable stock, reinforcing two-tier pricing where young diesel vans command premiums among small business owners, but older cars face steep discounts. The Singapore used car market size attached to gasoline vehicles will contract moderately as its market share slips below 50% post-2028. Dealers pre-position by taking franchise rights for EV maintenance brands to secure service-bay throughput even as fuel mixes shift.

Geography Analysis

Singapore’s 720 km² landmass compresses the trading ecosystem into a single economic node. HDB-heavy estates like Toa Payoh account for dense buyer clusters seeking compact sedans, whereas landed-property belts in Tanglin and Bukit Timah lean toward premium SUVs, reflecting higher disposable income. Micro-market segmentation hinges on MRT connectivity; completion of the Thomson-East Coast Line reduced travel times from Woodlands to Marina Bay by 50%, dampening incremental purchases for work commutes. Families with young children still value door-to-door convenience, sustaining baseline demand in mature neighborhoods. 

Cross-border trade with Malaysia and Indonesia is limited but meaningful for high-net-worth clients who export ex-Singapore EVs under dealer-facilitated schemes. The regulatory prohibition on personal import of cars older than three years prevents arbitrage from low-cost neighboring markets, preserving price stability within the Singapore used car market. Dealers leverage the island’s modern road network—west-to-east travel is under 45 minutes—to promise same-day test drives, a logistical advantage over geographically dispersed neighbors. 

The government’s car-lite vision keeps annual vehicle population growth near zero, yet secondary turnover remains healthy because enforced COE expiries deliver predictable scrappage pulses. That certainty supports a highly organized remarketing chain, with auction houses in Kaki Bukit able to process Trade-In-To-Auction cycles within 72 hours. High broadband penetration enables island-wide digital bidding, lowering time-on-lot metrics and boosting capital deployment efficiency across the Singapore used car market.