With petrol costs rising and COE prices reaching record highs, it’s not easy being a car owner. For first-timers looking to get a car, it’s best that you find out how much it potentially takes to become a bona fide car owner before you take the plunge. Hint: it ain’t cheap.

After all, the cost of owning a car in Singapore doesn’t come just from the value of the car, but also things like Certificate Of Entitlement (COE) prices, petrol, car insurance, road tax, parking fees and more. Read on as we break down all the fees and expenses of owning a car in Singapore. 

Why is it so expensive to own a car in Singapore?

First things first, why is it so ridiculously expensive to own a car in Singapore? The cost of owning a car here is easily four to six times more than what it costs to own the same model in countries like Malaysia, Australia and the US.

That’s because in Singapore, there’s something called COE.

With space being a scarcity in Singapore, the COE was introduced to combat road density and manage the local car population. You need it before you can buy or own a car. And that’s tough because COEs are limited. However, demand far outweighs supply, which explains why COE prices are so high.

On top of that, the Land Transport Authority (LTA) has also introduced various vehicle ownership taxes to manage the car population in Singapore, which further pushes up the cost of owning a car in Singapore. 

How much does it cost to own a car in Singapore?

Here’s an overview of the expenses involved in owning a car. 

COE Price in Singapore

COE prices is the single most expensive factor that is driving up the cost of car ownership in Singapore. And if you look at historical data, it’s on an upward trend.

Here are the latest COE prices in Singapore for cars.

Open Market Value (OMV)

The OMV refers to the amount payable for importing a vehicle into Singapore, which includes its purchase price, freight, insurance and other charges related to its delivery and sale in Singapore.

This varies from car to car, but you can check the average OMVs of common car models in Singapore here. 

Registration fees and taxes

When you buy a car in Singapore, you’ll realise that a substantial amount goes to paying taxes. First, there's an upfront Registration Fee (RF) of $220.

Then, there’s the Additional Registration Fee (ARF), which is calculated based on your OMV: 

For instance, if your OMV is $36,000, your ARF will be:

($20,000 x 100%) + ($16,000 x 140%) = $44,000.

However, you’ll be able to recoup a percentage of your ARF through Preferential Additional Registration Fee (PARF) rebates if you deregister your car before it reaches 10 years.

Besides the RF and ARF, you’ll also have to pay Excise Duty, which is 20% of your OMV, as well as Road Tax every six or 12 months.

Depending on the type of car, here’s how much road tax you’ll have to pay every six months:

Car Type: Petrol, Petrol-Compressed Natural Gas (CNG), CNG or Diesel Cars

Car Type: Electric Cars

Car Type: Petrol-Electric Cars

Car insurance

Like taxes, car insurance is compulsory if you want to drive in Singapore. How much you’ll have to pay depends on your age, gender, driving experience, type of car as well as preferred coverage.

This can range from hundreds to thousands each year depending on what you want. Generally the younger you are and less driving experience you have, the more expensive your car insurance premiums will be. Thankfully, plans like Singtel Car Protect offer comprehensive coverage at wallet-friendly prices.

Other miscellaneous costs

While most of the fees listed above are upfront costs, let’s not forget other recurring costs such as your petrol expenses, parking fees, car servicing and even ERP charges!

These can be substantial just by looking at petrol prices today in Singapore. 

Parking Fees and ERP charges

The cost of parking can also creep up on you unknowingly. Already, season parking at a multi-story car park costs $110 a month. And that’s not including the parking fees and ERP charges incurred when you drive to work, run your errands or head out for a meal. 

Is it worth buying a car in Singapore?

This really boils down to why you are buying a car and whether you can afford it. If you need a car for work or you are a soon-to-be parent, you might not have much of a choice.

What’s more important is picking something that’s within your budget. To give you an idea of how much you have to prepare, here’s how much it costs to own a car – specifically the Toyota Corolla Altis Standard – if you are a 30 year old, single male office worker who drives to work and leisurely on the weekends.

Based on February 2022 prices from OneMotoring, the Toyota Corolla Altis costs an average of $105,160 with COE. After deducting the 30% down payment, here’s how much it’ll cost monthly:

How to reduce the cost of owning a car

A car may be expensive but there are some ways that you can achieve savings

1. Get a second-hand car

Used cars are not only cheaper to purchase, but also cheaper to insure. You’ll also enjoy a lower rate of depreciation, as this usually occurs the most within the first few years.

2. Reduce fuel consumption

You can’t control petrol prices but you can control when, how and where you drive. Optimise your fuel consumption by driving smoothly and planning your routes to avoid traffic.

3. Carpool

Turn your expense into a side hustle. If you’re driving anyway, why not share your ride with people who are heading the same direction? Services like GrabHitch can help you alleviate your costs without requiring much additional effort from you.  

4. Get the right car insurance

Rather than blindly choosing the cheapest insurance, or splurging on extra coverage that you don’t need, the best car insurance is one that meets your needs. For instance, Singtel Car Protect is affordable and offers three different types of plans to cater to the coverage you need, with add-ons such as personal accident benefits and repairs at your preferred workshop. 

At the end of the day, a little goes a long way. The cost of owning a car can be managed if you work smart and are meticulous enough to hunt down deals that can bring about great savings. 

How to reduce the cost of owning a car

Case in point – get guaranteed $200 petrol vouchers when you sign up for any Singtel Car Protect plan from 1-31 December 2022.

You can also win one year worth of free petrol and more when you join the Singtel Car Community! It's open to all Singtel Postpaid Mobile and Singtel Car Protect customers.

Instead of dreaming about how much you can save, turn that thought into reality by getting a quote today.