Known for its efficiency and technology, Singapore is an extremely expensive place to buy a car.
In this article, we will look at the astronomical prices of car ownership in Singapore, starting with a whopping fee of $76,000 simply for having the privilege of owning a car without even considering the cost of the vehicle itself.
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- Why is there a 10-year entitlement certificate?
- What is a certificate of entitlement?
- When was the quota system implemented in Singapore?
- What do people in Singapore think about living there?
Why is there a 10-year entitlement certificate?
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According to figures from the Land Transport Authority, a 10-year Certificate of Ownership – a license that residents of the prosperous city-state must obtain before they can purchase a vehicle – now costs a record low of US$76,000 (S$104,000). ), more than four times what it did in 2020.
This only entitles you to buy a normal category A car with a modest to medium sized engine of 1,600 cc or less.
Those looking for something larger or flashier, such as an SUV, will have to pay $106,630 (S$146,002) for a category B licence, down from $102,900 (S$140,889).
Then you have to consider the cost of the vehicle itself.
What is a certificate of entitlement?
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Singaporeans who want to buy a car must go through a bidding process for a COE, which is part of a system implemented in 1990 to limit the number of cars in the city-state.
A COE grants the right to own a vehicle that can travel on the road for ten years.
While the price of COEs fell in 2020, it has since risen sharply due to increased economic activity following the epidemic, according to Reuters.
When was the quota system implemented in Singapore?
The quota system was implemented in 1990 to reduce traffic and emissions in a space-constrained city-state with a population of 5.9 million but an incredible public transportation network.
It has put cars out of reach for the typical Singaporean, where the Department of Statistics reports that the median monthly household income in 2022 will be $7,376 (S$10,099).
Local car dealer Ricky Goh said he “almost fainted” when he heard about the price increase.
“Sales have already been dismal. This, on top of everything else, will be disastrous for business,” he told CNN.
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Wong Hui Min, a mother of two, believes she should reconsider her dependence on her car, even though she mainly uses it for family purposes.
“I’m always running around, taking my kids to and from school, as well as other activities like swimming lessons and classes.” I need my car. “It just doesn’t suit me to take taxis or rideshares everywhere,” she explained. For some, the announcement is just the latest financial setback.
What do people in Singapore think about living there?
Locals say living in Singapore, already the world’s most expensive city, has become prohibitively expensive in recent years due to continued inflation, rising public housing costs and a faltering economy.
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However, proponents of the quota system say it has helped Singapore avoid the kind of traffic jams that plague other Southeast Asian capitals such as Bangkok, Jakarta and Hanoi.
Those unable to acquire a Certificate of Ownership could take advantage of Singapore’s great public transport system, they say.
If that doesn’t work, there’s still the option of renting a motorcycle, licenses for which cost just US$7,930 (S$10,856).
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Source: vtt.edu.vn