Amidst escalating prices for consumers in Singapore, the allure of a cheaper means of private transport grows stronger. Car prices are sky-high, unless you’re willing to settle for a China-made Chery or Geely. Even with lower machine prices and COE for the smaller cc engines, there’s really no escaping the gridlock of ERP gantries spreading their tentacles across the island.

Public transport is not even an option, no matter what the transport minister says. Taking more than an hour to get to work each morning is ridiculous, considering we’re only one small dot on the map. Add to that the pain of standing — with eyes not yet opened — throughout that time, and you’ll share my disdain for buses and the mrt. And for all that trouble, public transport is nowhere near cheap either!

For those not rolling in the money but welcome the convenience of your own vehicle, a motorcycle is the best option. And its appeal is sure to grow further as we face Budget Day tomorrow. But before you jump into buying that two-wheeled crotch rocket at the motorbike shop, here’s a warning: the advertised price is not always the price you have to pay! If a bike is priced at, say $10,000, the final price you fork out could possibly be quite a bit more. ThrottleZine explores the hidden costs of owning a motorcycle in Singapore.

Buyers Beware!

1. Certificate Of Entitlement (COE)

This extra cost is specifically for brand new motorcycles which have not yet been registered, as well as second-hand bikes that are nearing or past its 10-year COE lifespan. As at February 2008, the price of COE for a motorcycle (Category D) stands at $999. Check here for updated prices.

If you’re buying a brand new bike from the shops, please check to make sure the quoted price includes COE. It makes a whole lot of difference to the final amount you have to spend!

If you’re buying a second-hand motorcycle, please do check how old it is, and whether the COE has been extended yet! Not only does an older machine inherently mean more tender loving care has to be given, but many have fallen into the pitfall of snapping up a seemingly cheap $1000 bike, only to learn they have to renew its COE a few months later at almost the cost of the bike!

2. In-Vehicle Unit (IU)

It is mandatory for every vehicle on Singapore roads to have one of these ugly things, but you’ll be surprised. If you’re buying a second-hand bike, check there’s an IU, and insert a working cashcard to make sure the unit is working!

Image Source: www.visitsingapore.com

Some first-hand dealers do not include the price of the IU in the quoted price, so please check check check, even if it makes you look like some penny-counting auntie.

You may choose to ride — illegally — without an IU, but beware the hefty penalties if you get caught passing an ERP gantry without one. The fine is $150, and you have to send your vehicle for a very troublesome inspection at one of the LTA-approved centres, which could take up a whole morning.

3. Insurance

This is another additional cost some bike shops do not bother telling you about. Insurance can cost between a couple hundred dollars to more than a thousand bucks a year, depending on your age, number of years of riding experience, make and age of your bike, the type of insurance plan you’re getting, and the insurer you’re signing up with.

First party insurance offers comprehensive coverage, and is recommended if you’re getting a pretty ride that is sure to draw jealous stares.

Thrid party insurance doesn’t cover much, but is the cheapest option. In between, third party with fire and theft coverage (commonly known — mistakenly — as second party insurance) does what it says it does.

A good guide to deciding which insurance policy is to weigh how much you can afford against how much you’re likely to get in trouble with your bike. If your bike is likely to get burnt, stolen, or wrecked, well, erm, I don’t know why you’re riding in the first place. Save up and get an amoured car, dude!

4. Road tax

Yes, we have to pay for the superbly-conditioned roads we ride on. Cough cough. Prepare to pay between $80 and $200 per year for this. And, as usual, some shops conveniently forget to mention this in the quoted price.

RThe good news is, road tax is transferable. It belongs to the bike, not the owner of the bike. So if you’re buying a second-hander off somebody, there might just be a few months left you inherit for free.

5. Interest Rates

A new bike for $10,000 sound like a great deal, no? But unless you’re paying cash upfront, prepare for interest rates from hell.

Interest rates for a new bike is commonly between 4-5% per annum, and for a used bike, 6-8% per annum. And the interst accumulates, mind you. So in effect, if you’re planning to take 5 years to pay off your bike loan, a new $10,000 bike will cost about $12,000 (4% x 5 years = 20% interest), and a second-hand bike will cost $14,000 (8% x 5 years = 40% interest).

With rates like these, no wonder some of us turn to road rage.

6. Goods & Services Tax (GST)

Oh, and don’t forget every Singaporeans favourite tax — GST — which stands at 7% currently.

Let’s not even go there. I’ve got too much angst as it is, and launching into one of my political tirades is not going to help.

So there you are, 6 hidden costs to look out for when you’re buying yourself a motorcycle in Singapore. Let me know if there’s any other costs I missed out on.

Enjoy your ride!

Related:

Singapore Bike Forum thread on “19-year-old misled into signing agreement for motorbike purchase“

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