How to Buy a New Commercial Vehicle Singapore

If you want to buy a commercial vehicle in Singapore, you’re in the right place. Whether you’re starting a new business or adding to your fleet, getting the right vehicle is important. Here’s a simple guide to help you understand the process, the types of vehicles available, and the costs involved. Don’t forget to explore financing options when looking to buy commercial vehicle Singapore.

Who Can Buy A Commercial Vehicle?

In Singapore, only registered companies can buy commercial vehicles. Individuals can only buy one if they have a hawker licence from the National Environment Agency.

Types of Commercial Vehicle

There are four main types of commercial vehicles in Singapore:

1. Goods-Cum-Passenger Vehicles (GPVs): These versatile vehicles designed to carry both goods and passengers. These vehicles are ideal for businesses that need to transport items and a small number of people simultaneously. For example, a van equipped with cargo space and passenger seating would fall into this category. GPVs must be registered as such and comply with specific regulations that govern the transportation of both goods and passengers.
2. Light Goods Vehicles (LGVs): These are commercial vehicles that can carry loads up to 3,500 kg. They are ideal for businesses that need to transport lighter items, like small deliveries or service tools. Examples of LGVs include small vans and pickup trucks. They fall under Category C for COE bidding and must follow specific road rules set by the authorities.
3. Heavy Goods Vehicles (HGVs): These are designed to transport heavy loads, with an MLW of more than 12,000 kg. These vehicles are typically used for moving large quantities of goods or construction materials. Examples include large trucks and lorries. HGVs are classified under Category E for COE bidding and are subject to restrictions on where they can be driven, such as being prohibited from expressways and tunnels.
4. Very Heavy Goods Vehicles (VHGVs): These are the heaviest class of commercial vehicles, with an MLW exceeding that of HGVs. These vehicles are meant for transporting extremely heavy and bulky items, often over long distances. Oversized transport trucks and specialised vehicles used for moving heavy machinery fall into this category. Like HGVs, VHGVs are also classified under Category E for COE bidding but are typically subject to even stricter regulations due to their significant size and weight.

Each type has its own rules and costs, so it’s important to know what you need before buying.

Costs and Financing For Commercial Vehicle

When buying a new commercial vehicle Singapore, consider these costs:

• Upfront cost: This is the initial price you pay to purchase the vehicle.
• Maintenance and repairs: These are the costs for regular upkeep and fixing any issues that come up with the vehicle over time.
• Fuel costs: This includes the price of petrol or diesel needed to run the vehicle.
• Insurance premiums: This is the cost of insuring the vehicle to protect against accidents, theft, and other damages.

You can also think about leasing or renting instead of buying. Understanding these costs will help you make a good decision for your business.

Key Points

• Only registered company and individuals with a hawker licence can buy commercial vehicles.
• There are four main types of commercial vehicles, each with specific rules and costs.
• Consider all costs, including purchase price, maintenance, fuel, and insurance.

Understanding the Rules and Types of Commercial Vehicles

It’s important to know the different types of commercial vehicles and the rules that apply to them. Here’s a quick overview:

Categories of Commercial Vehicles

• Light Goods Vehicles (LGVs): Up to 3,500 kg.
• Heavy Goods Vehicles (HGVs) and Very Heavy Goods Vehicles (VHGVs): More than 12,000 kg.
• Goods-Cum-Passenger Vehicles (GPVs): Carry both goods and passengers.

Certificate of Entitlement (COE)

The COE is a system that controls the number of vehicles on the road. You need to bid for a COE to register a vehicle. Prices vary and can be high. A COE is valid for 10 years and must be renewed after that.

Vehicle Registration and Tax

All vehicles must be registered with the Land Transport Authority (LTA) before you can drive them. You’ll need a Vehicle Registration Number (VRN) and a Vehicle Parking Certificate (VPC). Road tax is based on the vehicle’s engine size and must be paid yearly.

Safety and Operational Rules

There are many safety and operational rules for commercial vehicles:

• HGVs, VHGVs, and GPVs cannot use expressways and tunnels.
• Oversized vehicles need a special permit.
• All vehicles must meet blind spot safety requirements.
• Vehicles typically have a lifespan of 20 years and must be scrapped after that.

Budget and Financing Options

Before buying, check your budget and financing options. You can get a loan for up to 90% of the vehicle’s cost, but you’ll need to pay the remaining 10% upfront.

Additional Costs

Consider these extra costs:

• Vehicle registration fee
• Additional Registration Fee (ARF)
• COE fee
• Insurance: This is essential to protect your vehicle and business.

Getting the Most Value

To get the most out of your vehicle, choose one that fits your business needs and maintain it well. Regular servicing and keeping it clean are important. Registered companies can also get tax benefits, so talk to a financial advisor about the best options for your business.

Frequently Asked Questions

1. What are the steps to buying a commercial vehicle for your business in Singapore?

Identify the type of vehicle you need, research dealers and financing options, and consider all ownership costs.

2. Can you buy a used commercial vehicle in Singapore?

Yes, but make sure it’s in good condition and has been well-maintained. Check its service history.

3. What are the benefits of registering a vehicle under your company’s name?

You can get tax deductions, liability protection, and improve your business’s credibility.

4. Can you use a commercial vehicle for personal use in Singapore?

No, commercial vehicles can only be used for business purposes.

5. How do you distinguish between a light goods vehicle and other types?

Light goods vehicles have a maximum weight of 3,500 kg. Other types are heavier and have different uses.

6. What are the criteria for goods-cum-passenger vehicles?

These vehicles can carry both goods and passengers, have a maximum weight of 5,000 kg, and a seating capacity of up to 15 passengers. They must meet specific registration rules.