(2024 Edition) Cost Of Owning A Motorcycle In Singapore Over 10 Years

While owning a motorcycle in Singapore is cheaper than owning a car, it can still be 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, the prospect of scrambling for space on the MRT every morning will mean some people are inevitably drawn to the freedom of personal transportation – choosing a motorcycle as a more cost-efficient alternative.

A two-wheeler also makes it more agile whizzing through jams, making motorbikes one of the most convenient and fastest ways to get around Singapore. We delve into how much one should expect to spend on a motorcycle over 10 years in this article.

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

Overview Of Motorcycle-Related Expenses

In general, there are six main cost components that you should consider before buying a motorcycle in Singapore.

• Cost of Motorcycle
• Loan & 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 (2024 edition), a popular Class 2A motorcycle model, as a basis for calculating the costs.

Cost Of Motorcycle Purchase

The cost of a swanky new RC390, a relatively powerful and sleek-looking motorcycle, is around $15,900 before COE. Including the latest COE prices, the RC390 will set you back around $25,800 – factoring in a COE of $9,900 for Category D (as of 2nd bid September 2024).

In contrast, a brand new entry-level car, the Nissan Sylphy 1.6 Lite Facelift, is currently one of the cheapest cars on the market in Singapore, and will set you back around $184,824 including COE. This gives you about 7 times the savings if you choose a motorcycle over a car.

If you are open to buying a secondhand motorcycle, you can expect the price of your motorbike to be cut in half.

Cost: $25,800

Read Also: Cheapest Cars That You Can Buy In Singapore

Motorcycle Loand & Interest Cost

Unless you intend to pay for your motorbike in full, you should expect to fork out a monthly loan and interest cost. As the principal repayment on the loan would have been accounted for in the cost of the motorbike above, we’ll just look at how much the interest cost would amount to in this segment. But, bear in mind that you do not need to pay the full amount of the motorbike upfront, and can instead spread it over a loan period as well.

For your motorcycle loan, it is simple math – the more you borrow and the longer the duration of the loan is, the higher the interest cost will be. The usual channels for motorbike loans include in-house financing from dealerships, personal loans from banks and financial institutions.

In our example, we will assume that a buyer pays an average minimum down payment of 20% for the new bike at $5,160 (of the $25,800 price tag) and borrow the remaining amount from a dealership’s in-house financing. You can use the calculator from A.S Phoon to calculate your motorcycle interest payable.

For a secondhand motorcycle, do note that the in-house financing interest rates will usually be about 2% to 3% higher per annum – bringing it close to around 5% to 7% p.a.

Cost: approximately $5,000 in interest (over a 5-year loan period)

Motorcycle Road Tax

The road tax for motorcycles of 395cc, you will be expected to pay about $200  every year. Over 10 years, motorcycle owners would pay $2,000.

Cost: $2,000

Motorcycle Insurance

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

With at least 2 years of riding experience and over 23 years old, you can expect to pay about $428 per year for Third Party, fire and theft coverage. Over 10 years, you can expect to pay about $4,280.

Cost: $4,280

Read Also: How Much It Truly Costs To Own A Harley-Davidson In Singapore

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 certain motorcycles may require two parking lots). Of course, you will incur additional parking charges if you drive to work.

For ERP, we will just assume the charges to be $20-$30 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 can achieve the fuel consumption being advertised, you will find yourself needing to top up about 4 times a month. This would translate to about $100 in petrol costs each month, assuming you pump octane-95 fuel before discount.

The total cost for parking, ERP and petrol will be about $150 per month or $1,800 a year. This will add up to $18,000 over a 10-year period.

Cost: $18,000

Read Also: Guide To HDB Season Parking, Family Season Parking, And Special Parking Permits

Servicing & Maintenance

As the saying goes, it’s not about the years but the mileage. Servicing depends on how you often drive the motorcycle, how well it is being maintained and the price of the parts required. Generally, 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

From the table above, we estimate that the cost of owning a motorcycle over a 10-year period is about $57,000. This is more than double the listed sales price and COE of the motorcycle, However, it is definitely a cheaper alternative to owning a car. If you prefer owning a second-hand motorcycle, it can become even more affordable and you will be able to save on upfront costs as well.

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

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

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

This article was originally published on 13 August, 2020 and updated to reflect the latest information.

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