These Are The Cars We Would Buy At S$700 Depreciation Per Month

With a car ownership structure that is unlike any other country, our perception towards how cars are valued is akin to understanding a complex subculture. Existence of Cat A COEs have made physically larger, but less powerful cars more widespread (due to the trend of Cat A premiums generally costing less than Cat B or E COEs). And the extra tier of 220% additional registration fee (ARF) for vehicles with an Open Market Value (OMV) of more than S$80,000 has arguably widened the gap between dream and reality - simply due to the fact that they are financially less attainable.

If we are just shopping for a simple, dependable car that does not break the bank, a major course of action will be to evaluate the car’s depreciation. We’ve decided to dissect it to a more relatable calculation method - monthly depreciation - which might help us apportion budgets more realistically for a typical salaryman. Sure, depreciation fluctuates just like how we’ve seen used car prices rise across the board generally due to rising COE premiums. And other factors such as insurance premiums, road tax and fuel bills do add up to monthly costs.

There are a few cars we feel confident to recommend based on a monthly depreciation of S$700 per month (S$8,400 per year). They need not be the exact cars in the listing - these models are shortlisted based on reputation, reliability and more importantly, they fall within a relatively approachable price point that aspiring car owners could work towards.

The Suzuki Swift is known for its pint-sized stature - an attribute that can sometimes receive flak when we place it on the metal-per-dollar scale. But we strongly believe that cars sized like the Swift have a charm only long term owners can comprehend. It is simple to operate at low speeds and dynamically more agile than we might give it credit for. A classic scenario of “you never know what you’ve got till it’s gone”. This example is decked out in a higher-spec GLX trim, which includes 16-inchers, keyless entry, six airbags, front fog lamps, rear disc brakes, telescopic steering wheel adjustment and LED side repeaters. Our used car buyers’ guide for the 2nd-gen Swift might come in handy.

While the current-gen Honda Jazz / Fit has matured in terms of aesthetics and refinement, some might feel that the Jekyll and Hyde personality of the previous three generations were sorely missed. It looked more practical than its hatchback proportions might suggest, which is primarily attributed to the rear seats that could fold cinema-style and flat - mimicking a minivan. We have to stress that a low mileage / depreciation 3rd-gen Fit / Jazz might be registered under the Off-Peak Car (OPC) scheme like this example, so it will be ideal to evaluate driving needs to suit your lifestyle. If some 3rd-gen Fit / Jazz are asking for more than S$700 depreciation per month, we might get lucky with a couple of low owner count, comparatively lower mileage 2nd-gen Fit / Jazz.

Toyota’s Raize might not pop up frequently on listings, but it's worth a punt if they are listed for sale. The Raize might not be offered by Toyota’s official dealer in Singapore, but do not let this cloud our perception of local market interest. *It’s a wildly popular compact crossover in The Philippines! Based on the same platform as the Daihatsu Rocky (which makes financial sense as Daihatsu is a wholly-owned subsidiary of Toyota Motor Corporation), this could very well be an underdog at this price point - achievable but we might need to settle for higher mileage units. *This unit is also tagged under the OPC scheme, but we are confident regular-plate examples will pop up soon. Sized like a Jimny, the 1-litre turbocharged motor offered in this variant will deliver more than sufficient poke for grocery runs. 18.8km/l on the combined cycle might not be as impressive as the Yaris Cross Hybrid’s claimed 26.3km/l, but the lower depreciation alone more than makes up for additional stops at the kiosks.

Remember the Daihatsu Charade? It might draw attention nowadays at retro car meets, but back in the day it was a dime a dozen on local roads - some were even weapons of choice for grassroots motorsports events in the 90s. If we approach compact Daihatsus with this level of enthusiasm, the Charade’s successor, the Sirion, should rank pretty high in terms of desirability and nostalgia. It is based on the same underpinnings as the Toyota Yaris, so we should expect safe, predictable dynamics and more importantly a higher likelihood of a fuss free ownership experience. Like the Jazz, its 60/40 split rear seats fold flat but it might submit to heavier loads as the 1.3-litre motor is more adequate than zestful. But we are still getting plenty of car for the money.

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