Are you a business owner contemplating if you should buy a commercial vehicle in Singapore? Before embarking on your journey, read on about some common problems faced by commercial vehicle owners so you might avoid these traps.
(1) The initial cost & paperwork of buying a vehicle
Besides the cost of buying a commercial vehicle, in Singapore you would also have to factor in the cost of the COE for the vehicle. A brand-new Toyota Hiace, which is a popular commercial vehicle, costs around $55,000. The COE* on such a vehicle cost around $106,000! The COE rate in Singapore has been steadily growing and is expected to rise in the near future. Besides the high price you would have to fork out at the acquisition of your vehicle, you will also need to factor in all the time needed to research and apply for loans and COE. This can eat up into the time you would use instead to grow your business operations.
(2) Breakdowns causing disruption to your business operations
Have you heard the saying time is money? When running a business, it really is! Every second lost is a lost opportunity. Having downtime on your vehicles due to breakdowns and maintenance work results in disruption to your business operations and as a result, loss in income. Some common causes of breakdown in commercial vehicles are:
when your engine overheats, it doesn’t immediately cause your vehicle to stop. Instead, there would be warning signs on your dashboard. Most drivers tend to ignore this. Eventually, the engine temperature would rise to the point where the extreme heat warps the engine cylinders and pistons, and the vehicle comes to a halt. At this stage, the engine is lost, and repair works would take as long as 2-3 weeks and cost a bombshell!
(b) damaged or flat battery
a damaged or flat battery causes ignition problems and affects the vehicle’s electrical systems. This results in the vehicle not being able to start, or the engine starts and then dies off quickly, and headlights flickering. Repair works to replace the damaged battery with a new one takes about 1 day.
(3) Maintenance Costs
When buying any type of vehicle, always factor in the maintenance cost. Speak to the salesperson to find out the frequency and cost of maintenance works on the vehicles you’re browsing. For businesses, maintenance not only costs you money, but also time. Sending your commercial vehicle for maintenance works would disrupt your business operations. Depending on the duration of the maintenance works, you might even need to rent a temporary vehicle, which is an added cost to your business. Some common maintenance works are government mandated vehicle inspections, servicing to mitigate potential mechanical failure and scheduled type replacement after the tyre thread reaches a certain depth.
hese are some common problems faced by commercial vehicle owners in Singapore. As an alternative, consider leasing a commercial vehicle instead from Pan Pac. Our team handles all the paperwork, and the upfront cost is much lower compared to buying a vehicle, which allows you to invest that money into your business instead. We also provide 24/7 breakdown services and vehicle replacement allowing you to continue your operations without disruption. Contact us today to learn more and get a free quote.
* COE price reflects the time of publication. Pan Pac is not liable for any changes in the COE price.