Owning a car in Singapore is considered a luxury that is only enjoyed by 42.1% of Singapore household.
Transportation cost in the City of Lion was 2.7 times more expensive than the cost in New York. With that, Singapore has retained its position as the most expensive cities to live in for three consecutive years, starting from 2014.
This would come as no surprise to Singaporeans. The basic car such as a Toyota Altis could cost as much as that childhood luxurious sports car you've dreamt of!
Yet, sometimes having a car would be a necessity especially for families with children and busy working parents or for those who always feel 24-hours a day is not enough.
So if you are considering to purchase a car in Singapore, we have done the cost breakdown for you!
In Singapore, the high price of purchasing a car is partially due to the need to purchase Certificate of Entitlement (COE). On 20 June 2016, for example, the round of bidding for a Category A vehicle (cars that have up to 1600cc) had a closing price of S$53,000. To give you a rough idea of the cost of a car in Singapore, let’s take the basic Toyota Corolla Altis as an example!
To own a car in Singapore, on top of the COE, you’d have to pay for its market value and related taxes. The figures would look something like this:
Aside from the hefty investment to purchase the car itself, hitting the road would require you to pay the fixed cost of operating such as yearly road tax, insurance premiums, car depreciation, regular maintenance, and repairs.
To balance the expensive car price, Singapore does have extensive public transportation that has made it less inconvenient to travel around the little red dot. The scheme has made Singapore a clean city to live in with lesser traffic jams.
Yet, a private car will always have its benefits especially with the recent incidences of transportation breakdown or the recurring daily rush hour madness. If having a car is a requirement, there are other cheaper alternatives to purchasing a new car such as purchasing a used car, long-term leasing or even short- term rental on days when you need a car.
If you require further assistance on deciding what's the best alternative, we would be more than happy to help! Contact us!