Connect with us

Others

(2020 Edition) Cost Of Owning A Motorcycle In Singapore Over 10 Years

While owning a motorcycle in Singapore is cheaper than owning a car, it is still a significant financial commitment.


Owning a car in Singapore is an expensive affair, especially when we factor in various costs such as Road Tax, Certificate of Entitlement (COE) and servicing costs. However, some do not like the prospect of scrambling for space on the MRT every morning. That is why there are people who will turn to owning a motorcycle instead.

After all, the small size of the two-wheeler makes it agile whizzing through jams, and bikes are probably one of the most convenient and fastest way to get around Singapore. In this article, we will delve into how much one should expect to spend on over a 10-year period for this convenience.

Read Also: Cost Of Owning A Car In Singapore Over 10 Years

Overview Of Motorcycle-Related Expenses

In general, there are six main cost areas that you should consider before you purchase a motorcycle.

  • Cost of Motorcycle
  • Interest Cost
  • Road Tax
  • Motorcycle Insurance
  • Parking, ERP & Petrol
  • Servicing

Each of these costs will differ, depending on the motorcycle that you will be buying, your profile and your usage.

To help us with the calculation, we will use KTM RC390, a popular Class 2A motorcycle model, as a basis for calculating the costs.

Cost Of Motorcycle Purchase

Comparing between a car and a motorcycle, the cost of a swanky new RC390 is around $12,500 before COE. In contrast, a brand new Perouda Bezza, which is currently the cheapest car on the market in Singapore, will set you back around $62,000 before COE. This gives you 4 times the savings if you choose a motorcycle over a car.

If we include the latest COE prices with the cost, the RC390 will set you back around $19,000 after factoring COE of $6,510 for Category D, while the Perouda Bezza will cost you around $95,000, which includes COE of $32,699 for Category A.

If you are open to buying a secondhand motorcycle, you can expect the price of the bike to be halved.

Cost: $19,000

Read Also: 5 Cheapest Cars In Singapore That You Can Buy In 2020

Interest Cost For Loan

The cost of interest cannot be ignored for motorcycles, unless you intend to pay the full sales price. However, it is simple math that the more you borrow and the longer the duration of the loan is, the higher the interest cost will be.

In our example, we will assume that a buyer pays a downpayment of $3,330 for the new bike and borrow the remaining amount. If we assume an interest of 4% per annum, with a maximum loan tenure of 7 years, the total finance amount, including interest, would amount to $23,900. This would mean $4,900 incurred on the interest.

Cost: $4,900

Motorcycle Road Tax

The road tax for motorcycle of 395cc, you will be expected to pay about $63 every year. Over a 10-year period, motorcycle owners would pay $630.

Cost: $630

Motorcycle Insurance

Motorcycle insurance is mandatory in Singapore. The amount you will be paying for your insurance will depend on the few factors, such as your desired coverage, the motorcycle you own, your current age and your driving history.

If this is your first motorcycle right after you obtained your licence, you can expect to pay about $420 per year. Over a 10-year period, you can expect to pay about $4,200.

Cost: $4,200

Read Also: A No Nonsense Explanation On Why Cars In Singapore Are So Expensive

Parking, ERP & Petrol

If you are buying a motorcycle, you would be expected to use it regularly, and this would incur additional costs such as parking, ERP and petrol.

Season parking at an HDB estate costs up to $17 a month, and additional fees may apply if you were to pay for parking at your workplace.

For ERP, we will assume the charges to be $20 every month.

The fuel capacity of RC390 is about 10 litres, and it consumes 4.2 litres of fuel for every 100km travelled. This translates to which translates to 240km before needing a refuel. Assuming you drive about 30km per day and are able to achieve the fuel consumption being advertised, you will find yourself needing to top up about 4 times a month. This would translate to about $80 in petrol costs each month, assuming if you pump octane-95 fuel before discount.

The total cost for parking, ERP and petrol will be $117 per month. This will add up to $14,070 over a 10-year period.

Cost: $14,040

Servicing & Maintenance

Servicing is dependent on how you often drive the motorcycle, and how well it is being maintained. Generally speaking, a typical motorcycle servicing requires a change of engine oil, cleaning of filters, threading/changing of tires and change of brake pad.

A major servicing which can cost around $300 to $400, can occur once every two years. On average, it cost around $150 to $200 every year to maintain a motorcycle. That would amount to $2,000 over a 10-year period.

Cost: $2,000

Read Also: Will Extending Your COE Really Be Cheaper Than Buying A Brand-New Car?

Total Cost Of KTM RC390 Over A 10-Year Period

Type of Cost Cost
Cost of Motorcycle $19,000
Interest Cost $4,900
Road Tax $630
Motorcycle Insurance $4,200
Parking, ERP & Petrol $14,040
Servicing $2,000
Total Cost Over 10 Years $44,770

 

From the above, we estimate that the cost of owning a motorcycle over a 10-year period is about $44,770. This is about 60% higher than the listed sales price of the motorcycle.

The calculation is also based on the usage assumptions. However, if you use your motorcycle more frequently, your petrol, parking and servicing cost will go up, and all these would increase your overall cost.

The cost does not include the amount required to obtain a Class 2A licence, which is required to operate the model.

That said, the cost of owning a motorcycle is considerably lower than a car, which is a few times more expensive over a period of 10 years. If you want the convenience (but perhaps not comfort) without breaking the bank, a motorcycle may be your best bet.

Read Also: Cost Of Getting A Class 2B Motorcycle License In Singapore (At BBDC, CDC And SSDC)

DollarsAndSense.sg aims to provide interesting, bite-sized and relevant financial articles.

Learn together with like-minded Singaporeans at the Personal Finance Discussion SG Facebook Group by discussing a range of personal finance topics.

If you have not done so, subscribe to our free e-newsletter to receive exclusive content not available anywhere else.