Cars in Singapore are some of the most expensive in the world. Here, we break down the cost of a car in Singapore.
A chain of costs
First off, a once-off registration fee of $220 is imposed on the sale of each car. Then, the Open Market Value (OMV) of the car is determined based on the cost of the vehicle, freight charges, and insurance. An excise duty of 20% of the car’s OMV is then imposed on the vehicle. Next is the Certificate of Entitlement, or COE. This certificate gives car owners the legal right to register, own and use a vehicle in Singapore for a period of 10 years.
The amount is determined according to a model of demand and supply for the car, so the COE for in-demand cars can sometimes exceed the price of the car itself. Even more substantial than the COE, the Additional Registration Fee (ARF) is again based on the OMV, but this time can be as much as 180% of that value.
A breath of fresh air
At this stage, you might be in a position to receive a rebate on the cost of the vehicle … as long as it’s judged to be a light emitter of pollutants. The Vehicular Emissions Scheme (VES) provides for rebates – or additional surcharges – on vehicles according to their emission rankings.
After the VES, it’s merely a matter of applying the Road Tax, Carplate Number Fee, Goods and Services Tax, and of course the sales commission, which goes to the dealer. After all that, is it any wonder that a Volkswagen Golf 1.4, which sells in Norway for just over $44,500, sells in Singapore for nearly three times as much?
What you can still get “cheaply”
Singapore’s cheapest cars are more expensive than some other countries’ standard models. That said, here are the five cheapest new cars you can find in Singapore in 2019:
Protecting your valuable assets
If you’re going to be paying a premium for your vehicle, you’ll want to have confidence that it’s safe and secure. Cartrack’s vehicle tracking solutions are second-to-none –just ask one of Cartrack’s 900,000 global subscribers. https://www.cartrack.sg/