Singapore Car Ownership Costs Rs 64.35 Lakh, Here's Why

In a surprising turn of events, owning a car in Singapore has become a luxury few can afford.

The island nation has recently witnessed a notable surge in the expenses associated with car ownership, transforming it into one of the most expensive places on the planet to acquire a vehicle.

What’s to blame for this astonishing rise in car prices? None other than the infamous “Certificate of Entitlement” (COE).

As of now, prospective car buyers in Singapore must bid for a COE, and the current price tag is a staggering 106,000 Singapore dollars, equivalent to a jaw-dropping Rs 64.35 lakh in Indian currency. To put this in perspective, with that same amount, you could own four Toyota Camry Hybrids in the United States.

This astronomical spike in car ownership costs can be attributed to the post-pandemic economic recovery, which has driven up demand for the city-state’s limited vehicle quota system.

Singapore first introduced the 10-year COE system back in 1990, aiming to control the number of vehicles on its roads. Fast forward to today, and the vehicle quota system has transformed Singapore into a city where car ownership is reserved for the elite.

If you aspire to own a Toyota Camry Hybrid in Singapore, be prepared to part with a whopping 183,000 Singapore dollars (approximately Rs 1.1 crore in Indian currency), including COE, registration fees, and taxes.

In the not-so-distant past, the COE price was a more manageable 30,000 Singapore dollars in 2020. However, the post-COVID economic resurgence has led to a substantial increase in economic activity, resulting in a surge in the number of vehicles on Singapore’s roads, which now stands at a staggering 950,000, according to a recent report.

The number of new COEs made available depends on how many older cars are deregistered, a factor that has contributed to the skyrocketing prices, effectively placing car ownership firmly out of reach for most middle-class Singaporeans.

Sociologist Tan Ern Ser commented on the situation, stating, “There is a need to lower one’s aspiration from achieving the ‘good life’ to settling with a ‘good enough life’ in the face of these soaring costs.”

Jason Guan, a 40-year-old insurance agent and father of two, shared his perspective, saying, “As a family man, it doesn’t affect me much as Singapore still has a good and stable education system. In terms of security, it’s still one of the safest countries.” Guan, who purchased his first car, a Toyota Rush, for S$65,000 in 2008, has chosen to forego car ownership, focusing instead on the numerous other advantages that Singapore has to offer his family.