The Singapore Used Car Market 2025 has never been more active. With COE premiums breaking records and new car prices soaring, more Singaporeans are turning to the pre-owned market for affordable alternatives.
Buyers who once aspired to brand-new cars are now finding better value in used vehicles with remaining COE life. Dealers, too, are reporting record sales as demand shifts away from showroom models. Let’s look at the key trends, the most popular cars, and what makes 2025 such a landmark year for used car buyers.
Why Used Cars Are in Demand in 2025
The surge in demand is mainly driven by high COE premiums. With Category A COE above S$105,000 and Category B over S$135,000, many households are priced out of new cars.
A used car that still has several years of COE validity offers an affordable alternative. Buyers avoid paying the full cost of a fresh COE while still enjoying reliable transportation.
Other reasons include:
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Lower upfront costs compared to new models.
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Growing availability of high-quality pre-owned EVs and hybrids.
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Financing packages tailored to used car purchases.
Key Market Trends
1. COE Impact
High COE premiums are the single biggest driver of the used car boom. Buyers are carefully calculating whether to renew COE on older cars or buy a pre-owned model with a few years left on its COE.
2. Rise of Pre-Owned EVs
With EV adoption rising, models like the Tesla Model 3 and BYD Atto 3 are now entering the used market. Families who want electric cars at lower costs are showing strong interest in these pre-owned EVs.
3. Strong Demand for Japanese Cars
Brands like Toyota, Honda, and Mazda dominate the market. Reliable sedans like the Toyota Altis and Honda Civic are among the most popular, thanks to their low maintenance costs.
4. Leasing & Subscription Models
More companies are offering flexible leasing of used cars. Buyers hesitant about long-term COE renewals prefer short-term commitments.
Top-Selling Models in Singapore Used Car Market 2025
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Toyota Corolla Altis – A perennial favorite for its reliability and affordable upkeep.
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Honda Civic & HR-V – Popular among younger buyers who want style and performance without breaking the bank.
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Mazda 3 & Mazda CX-5 – Known for fuel efficiency and comfort.
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Tesla Model 3 (Pre-owned) – The most in-demand used EV, with many coming onto the market from earlier buyers upgrading to 2025 versions.
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Hyundai Ioniq Hybrid – A strong choice for eco-conscious drivers wanting lower fuel costs.
Prices of Used Cars in 2025
Used car prices have climbed compared to past years but are still cheaper than buying new.
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Compact Sedans: From S$80,000–S$120,000 depending on COE left.
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SUVs: Range between S$120,000–S$160,000.
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EVs: Pre-owned Tesla Model 3 and BYD Atto 3 priced at S$150,000–S$180,000 depending on COE balance.
Buyers must weigh whether to purchase cars with 3–5 years COE left or renew the COE on existing vehicles.
Benefits of Buying a Used Car in 2025
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Cost Savings: Avoid the heavy upfront cost of a new COE.
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More Choice: Wide range of petrol, hybrid, and EV options available.
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Shorter Commitment: Cars with 3–5 years of COE remaining suit those not ready for a 10-year commitment.
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Depreciation Advantage: Used cars depreciate slower, meaning less loss in value over ownership.
Challenges Buyers Should Consider
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Warranty Limitations: Not all used cars come with full warranty coverage.
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Maintenance History: Buyers must carefully check service records.
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COE Renewal Costs: Extending COE after expiry may still be costly if premiums remain high.
These challenges underline the importance of buying from reputable dealers and inspecting vehicles before purchase.
Impact on Dealers and Market Outlook
Dealers are benefiting from booming demand. Many have expanded inventory, focusing on family sedans, SUVs, and pre-owned EVs.
Market analysts expect the used car sector to remain strong throughout 2025. Unless COE prices drop sharply, pre-owned vehicles will continue to attract buyers seeking value.
In the long term, the market is also expected to shift toward certified pre-owned EVs, offering warranties and guaranteed battery health reports.
Conclusion
The Singapore Used Car Market 2025 reflects a major shift in consumer behavior. With COE premiums pushing new cars out of reach, more households are embracing the affordability and flexibility of used cars.
From Toyota sedans to Tesla EVs, the pre-owned segment now caters to every type of buyer. While challenges like maintenance history remain, the benefits of cost savings and wider choice are driving the market to new heights.
For anyone looking to own a car in Singapore without overspending, the used car market in 2025 is the best place to start.
FAQs
Why are used cars so popular in Singapore in 2025?
Because COE premiums are at record highs, making new cars unaffordable for many families.
Which used cars are most in demand?
Popular models include the Toyota Corolla Altis, Honda Civic, Mazda CX-5, Tesla Model 3 (pre-owned), and Hyundai Ioniq Hybrid.
How much does a used car cost in 2025?
Compact sedans start around S$80,000, while SUVs and EVs range from S$120,000 to S$180,000 depending on COE balance.
Are pre-owned EVs available in Singapore?
Yes. Models like Tesla Model 3 and BYD Atto 3 are now common in the used market, offering lower entry costs for EV buyers.
Should I buy a used car or renew my COE?
It depends. If your current car is reliable, renewing COE may be cheaper. But for many, buying a used car with years of COE left offers better value.
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