Singapore Car Price 2023
In Singapore, owning a car is an expensive venture with several expenses above the automobile’s purchase price.
On the other hand, owning a car is not only more expensive than you would think it is; it is also stressful at the same time, particularly if you are not very skilled in handling a private vehicle, from its maintenance to learning the basic skills on how to fix your car’s tires etc.
To help you be fully prepared before making the important financial decision of purchasing a car, we’ve broken down the numerous costs you’ll incur as a car owner in the following guide.
Costs of Car Ownership in Singapore – Singapore Car Price
The initial cost of buying a car is the first and most evident expenditure you’ll need to take into account when you consider doing so.
In Singapore, a compact SUV/crossover costs around S$135,000, a sedan costs around S$120,000, while a luxury automobile costs around S$190,000.
Additionally, there are still a lot of things you need to look into first to have a better idea of how much buying a brand-new automobile in Singapore will likely cost you.
You should take into account the following things in addition to the initial cost of buying a new automobile in Singapore:
The price of the vehicle itself, as defined by its OMV, as well as the substantial fee you must pay to get a Certificate of Entitlement (COE) are included in the initial cost.
The COE is the ability to own a vehicle and drive it on the roads in Singapore.
Additionally, it frequently includes the first payment of the road tax as well as the registration fee and any additional registration fees.
Recommended: How Much Does It Cost To Own A Porsche In Singapore?
When buying or registering a vehicle, Singaporean automobile owners must pay a number of one-time taxes or fees.
When you look at automobiles at a dealership, for instance, these are often included in the final price you are given.
You will also be required to pay the Additional Registration Fees (ARF), which are scaled based on the OMV of your vehicle, in addition to the usual S$220 Registration Fee (RF).
The usual comprehensive vehicle insurance premium for a man driver in his 40s is around S$1,596 with a 0% No Claim Discount (NCD).
These variables may include factors like gender, age, driving history, and eligibility for the NCD.
Nevertheless, motorists may save up to 50% or more by switching to one of the insurance providers listed below:
The usual auto loan in 2016 cost around S$60,000, with DBS car loans being the lowest auto lender at a 1.99% interest rate.
According to MAS laws, you have a maximum of 7 years to pay off your automobile.
You must make a monthly payment of S$813.79 in order to pay off your auto loan on time.
You will be obligated to cover the ongoing cost of regular maintenance for the duration of your vehicle’s life.
The cost of maintenance varies based on the car’s engine size, mileage, and luxury status.
Every 10,000 miles driven or every six months, whichever comes first, maintenance is advised.
Read too: Cheapest Car Wash in Singapore
The cubic centimeters (cc) engine capacity of your vehicle determines how much road tax you will be required to pay.
The amount of road tax you must pay will grow as the engine size of your automobile increases.
Starting in August 2021, owners of private gasoline and electric vehicles will get a one-year road tax rebate.
A road tax decrease of up to 34% is possible in 2021 for owners of electric vehicles that are now taxed between 90 and 230 kw.
Like drivers everywhere else, drivers in Singapore also have ongoing expenses for petrol and parking.
It would cost S$3,295 to travel 17,500 km in this automobile over the course of a year.
Drivers in Singapore must pay to use the country’s Electronic Road Pricing (ERP) system while traveling through areas with heavy traffic.
Why are cars costly in Singapore? – Singapore Car Price
We can simply tell you that, taking into account all the factors we’ve already outlined, cars in Singapore are extremely, really costly.
Thus, one of the most expensive parts of living in Singapore is the expense of owning a vehicle.
The government believes that action must be taken to regulate the number of cars on the road, and economics is the method they opt for over alternative non-monetary controls like voting or issuing permits based on needs.
Why are cars costly in Singapore? – Singapore Car Price
Due to COE and fuel prices, owning a car in Singapore now is more expensive than ever.
Delaying the purchase of an automobile could be wise if you do not urgently require one.
As an alternative, you may think about getting a second hand car in Singapore thru these car dealers.
With that, here are a few of the least expensive automobiles (inclusive COE) you can buy in Singapore:
- Perodua Bezza 1.3 Premium X (A) – S$97,999
- Mitsubishi Space Star 1.2 CVT Style (A) – S$99,999
- Perodua Myvi 1.3 X (A) – S$101,999
Why not think about renewing your COE instead if you want to purchase a new vehicle or already own one that serves you well?
Consider buying a used automobile if you need a car but don’t want to spend a lot of money on a new one.
How Much Income Do You Need to Afford a Car in Singapore? – Singapore Car Price
Your salary or, more likely, your gross monthly income must be taken into account before you can afford and be qualified to buy your own car.
If you really want to buy a car in Singapore, it seems you need a gross monthly salary of at least S$4,000 to be able to comfortably own the Perodua Bezza 1.3 Premium X, which is also the cheapest model in Singapore.
If you are thinking about loans, the Monetary Authority of Singapore controls the maximum amount of a car’s total cost that may be financed through loans.
You can only borrow a maximum of 60 percent of the total cost of the automobile if it has an Open Market Value (OMV) of over S$20,000.
Compared to the other countries, such as Australia, China, and the United States, Singapore has a road infrastructure that is more than 10 times smaller.
With that, the government of Singapore has put in place a variety of restrictions, such as Certificate of Entitlement or Excise Duty on top of the purchase price of the vehicle, to limit the number of individuals who own automobiles, making the prices of cars in Singapore pretty expensive.
The bad news is that, at least for the near future, it is not anticipated that automobile costs would decrease considerably.
A significant decrease in COE pricing is most likely not expected until 2024 or 2025, when a large number of vehicles registered in 2014 and 2015 will have their COEs expire.
Don’t be shocked if COE premiums stay over six figures for this year 2022, though, since the quota is expected to remain low for the time being and demand isn’t showing any signs of slowing down.
Can you drive without insurance in Singapore? – Singapore Car Price
Yes, car insurance is mandatory in Singapore.
As part of the rules and regulation of The Land Transport Authority (LTA), the insurance must at least provide third-party liability protection for fatalities and physical harm.
This is crucial so that victims of vehicle accidents can receive insurance coverage.
Before your vehicle’s road tax may be renewed, it must be covered by insurance for the whole renewal time.
Here is all you need to know about the three different types of car insurance plans available in Singapore; newbies, consider this a crash course!
We’ll break down each insurance so you can choose which one is best for you and how it could meet your needs.
The most affordable type of auto insurance in Singapore is TPO.
When you damage a vehicle, TPO offers protection for other individuals.
When you cause an accident, your insurance company covers any repairs required for the individual whose car you struck, but you are still responsible for any damages.
In Singapore, Comprehensive Coverage is the most popular choice for auto insurance.
You are protected in the event of an accident, other people’s death or injury, accident-related medical expenses, other people’s property damage, and accidents.
The great majority of institutions that provide you vehicle loans need it.
If your car is older than ten years, you are not eligible to get Comprehensive Coverage.
This insurance covers both your damages as well as those you caused to the third party.
This option really represents a significant improvement over TPO since it offers coverage for a far wider range of potential events than TPO does.
Since the three types of car insurance we’ve discussed provide various advantages, we really can’t advise which one you should get for your vehicle.
While the amount of information may be daunting, here is a quick summary for the 3 car insurance that we’ve discussed:
- Third-Party Only (TPO) – Only your third-party liabilities are covered by TPO.
- Third Party Fire and Theft Car Insurance Coverage (TPFT) – Your third-party liabilities are covered, as is the loss of your vehicle due to a fire or theft.
- Comprehensive Coverage – Comprehensive covers both small and major incidents for you, your car, your passengers, and your liabilities.
Overall, choosing the perfect insurance for your car will still vary on you, particularly regarding your needs and the kind of insurance you want.
Now that you know, you can see that owning a car is about more than just about being expensive; there are still many things and considerations you need to be aware of before you can decide with certainty whether to buy yourself a car or if the time is not yet right for you to do so.
Overall, we hope that from reading about the initial costs of car ownership in Singapore to applying for car insurance after you already own a car, we have been of great help to you.
We truly enjoyed talking with you about these topics, and we are really excited for one of the biggest life decisions you will ever have to make—buying a car.