How Much Does It Cost To Own A Car In Singapore? 5 Facts You Have To Know
Singapore has one of the highest costs of living in the world. It is no surprise that owning a car, among other things, is an expensive endeavour. So how much does it cost to own a car in Singapore?
The costs are far more staggering than you can imagine. Aside from the vehicle’s purchasing price, there are also other permits and requirements to consider.
Singapore has a limited land size with a highly dense urban population, and government regulations have made it more complex to purchase a car in Singapore to reduce traffic congestion in urban streets, to make the city a more livable place for its residents.
If you’re considering purchasing a vehicle, be prepared to shell out more than its price. This guide will give you an idea of how much it costs to own a car in Singapore, to help you make an informed decision.
1. Average Cost Of A Car In Singapore
Figures from late 2021 show that the average cost of a mid-range sedan in Singapore is around $125,300. One of the most popular sedans is the Toyota Corolla Altis, which sells for $142,888 on average. The Honda Civic and Mazda 3, on the other hand, sell for $146,000 and $125,000, respectively.
All these prices are inclusive of the COE or Certificate of Entitlement.
Average Cost Of A Small SUV In Singapore
You may want to buy a bigger car than your typical sedan if you have a family.
SUVs are a perfect choice, and the price range is around $120,000 to $140,000 for a small one.
Here’s a list of popular small SUVs in Singapore that you may consider, along with their average pricing:
- Honda HR-V – $133,999-$166,999
- Nissan Qashqai – $162,800-$175,800
- Mazda CX-3 – $122,888-$158,888
- Toyota Yaris Cross Excite – $107,888-$137,888
- Kita Seltos SX – $117,999-$148,999
- Skoda Kamiq – $159,000-$169,000
Average Cost Of A Luxury Sedan In Singapore
For those who prefer a luxury sedan, expect to budget around $180,000 to $265,000.
Some of the top-selling cars in this category include the following:
- Mercedes-Benz C-Class
- Audi A4
- BMW 3 Series
The BMW 3 is the most affordable, and can be purchased from a car dealership at roughly $200,000.
Meanwhile, Audi is the second most popular car brand, but comes at a higher price at $230,800 compared to the Mercedes-Benz C-Class, which is priced at roughly $225,000.
2. Vehicle Purchasing Price
The Singaporean government makes vehicle ownership more expensive through car taxes and permits.
The average vehicle in Singapore must be taxed at least 100 per cent of its current open market value.
Additionally, you’ll need a COE or a Certificate of Entitlement before you can own and drive a vehicle. You’ll have to register your car by “bidding” for a COE, which takes place twice a month. The LTA facilitates the bidding process and will announce the COE quota available for each vehicle category (Cat A, Cat B, Cat C, Cat D, and Cat E).
If your COE bid is successful, you can use your vehicle only for up to 10 years (depending on its category). After which, if you choose not to renew your COE, your vehicle will be deregistered, sent to the scrapyard, or sold overseas.
Aside from the price of the car and the COE, other required payments include your car’s Registration Fee, Additional Registration Fee, and the first road tax payment. If your vehicle also emits certain levels of carbon emissions, there will be additional fees incurred.
For example, you are looking to purchase a Mazda CX-3.
The COE will cost between $70,000 to $100,000 for a Cat A vehicle.
The Registration Fee (RF) and Additional Registration Fee (ARF) are $220 and $50,000, respectively.
The cost of the car, including the additional fees, total up to $200,000.
3. Understanding The Registration Fee (RF) And Additional Registration Fee (ARF)
We mentioned the RF and ARF before, but what exactly are they?
Simply put, these are one-time fees you’ll need to pay when you buy or register a vehicle.
When a dealership quotes you the price of a car, these fees are already included in the total value.
The value of the RF is fixed at $220, while the ARF varies based on the OMV (Open Market Value).
The minimum ARF rate is set at 100 percent, with the maximum being 220 percent.
The ARF is often more expensive than the vehicle’s actual OMV, but it is possible to get a rebate for the value of the ARF, if you opt to deregister your car even before 10 years have passed.
In addition to the OMV, vehicle owners must also bear the cost of the Excise Duty (20% of the OMV),
plus the Goods & Services Tax at 7% imposed on consumer goods.
4. Carbon Emissions-Based Vehicle Scheme
Despite the high cost of purchasing a car in Singapore, there is good news for potential vehicle owners.
If you are considering an e-vehicle, which is significantly more environmentally friendly, you can get rebates through the CEVS (Carbon Emissions-Based Vehicle Scheme) system. This is the government’s way of encouraging its residents to opt for low carbon emission vehicles.
If your car emits low carbon emissions (per gram per kilometre), you are qualified for a rebate.
On the other hand, a high carbon-emitting vehicle will be subject to surcharges.
The Toyota Prius is one of the most environmentally-friendly vehicles in Singapore, at 106 g/kmand qualifies for high rebates. Meanwhile, the Lamborghini Huracan has higher levels of carbon emissions at 330 g/km, incurring a high surcharge.
5. Other Costs That Affect The Price Of A Vehicle
You’ll also need to get your car insured in case of accidents or unforeseen vehicle damage. Your car insurance provider will cover a certain percentage of the repair costs, provided that you pay your monthly premiums.
Insurance companies typically charge higher premiums for younger drivers, while older drivers get lower premiums. Younger drivers are statistically more likely to get into a car accident due to less road experience.
On the other hand, older drivers are more seasoned drivers and have a lower risk of road accidents.
The average annual price of car insurance premiums is around $1,630 per year, or $135 monthly.
Factor in this cost if you’re thinking about purchasing a vehicle.
If you do not file for any insurance claims under your policy for a year, your insurer will entitle you to a No-Claim Discount (NCD). The NCD effectively reduces the premium you have to pay the following year, offering some relief from your vehicle costs.
The next time you ask, “How much does it cost to own a car in Singapore?”, do consider the additional costs outside the cost of the vehicle, such as the Registration Fee, Additional Registration Fee, road tax, carbon emissions surcharges, and car insurance premiums.
If these costs are beyond your financial means for upfront payment, it is recommended to apply for a car loan instead.
Once you’ve purchased a car, it is important to have it serviced regularly. Our team at Kee Yong Auto can help with maintaining your vehicle at peak condition. We’re a one-stop auto servicing shop for premium and luxury cars such as Mercedes Benz, Jaguar, BMW, Land Rover, Bentley, and Porsche.
If you need maintenance or repairs on your vehicle, trust us to provide you with a reasonable quote. Minimise your car costs without compromising quality and reliability.
Call us now and learn more about how we can help!
FREQUENTLY ASKED QUESTIONS ABOUT THE COST OF OWNING A CAR IN SINGAPORE
How Much Should You Earn To Own A Car In Singapore?
What Happens To Cars In Singapore After 10 Years?
The LTA will deregister your vehicle after 10 years unless your COE is renewed. Failure to do so will prohibit you from using your car on the road. The vehicle may also be subject to other taxes, or the LTA will tow it.
What Is The Most Popular Car Brand In Singapore?
According to figures from 2021, here are the most popular cars in Singapore:
Why Are Second-hand Cars Cheaper In Singapore?
Used car models have been in the market for several years. This length of time makes the prices of their aftermarket parts and components more affordable due to their availability. Insurance companies will also charge much lower car insurance premiums.