Owning a Car in Singapore: What You Need to Know
Singapore is a small island city-state with a high population density, which means that owning a car can be a challenge. The Singaporean government has implemented several measures to control the number of cars on the road, one of which is the Certificate of Entitlement (COE) system. In this article, we will go over what you need to know about owning a car in Singapore, including the COE system, the costs of owning a car, and the alternatives to car ownership.
First let's talk about the COE.
The COE system:
The COE is a certificate that you need to buy in order to own a car in Singapore. The COE is valid for 10 years, and it's required for all new cars and motorcycles. The COE prices vary depending on the type of vehicle and the engine size, and they are determined through a bidding process. The current COE prices can be found on the Land Transport Authority (LTA) website: https://www.lta.gov.sg/content/ltaweb/en/roads-and-motoring/owning-a-vehicle/certificate-of-entitlement-coe.html
The costs of owning a car:
The costs of owning a car in Singapore can be substantial. In addition to the cost of the COE, you'll also need to pay for the car itself, insurance, road tax, parking, and fuel. The average cost of owning a car in Singapore can be around SGD$20,000 to SGD$30,000 per year, depending on the type of car and the costs of maintenance and insurance.
Alternatives to car ownership:
One of the alternatives to car ownership in Singapore is public transport. Singapore has an extensive public transport system, including buses and trains, that is reliable and affordable. A monthly adult card for public transport costs around SGD$120. Another alternative is ride-hailing services like Grab and Gojek. These services are widely available in Singapore and offer a convenient and affordable way to get around the city.
Owning a car in Singapore can be a challenge due to the COE system and the high costs of ownership. However, there are alternatives available, such as public transport and ride-hailing services, which can be more affordable and convenient. Before deciding to buy a car in Singapore, it's important to consider all the costs and the alternatives available to ensure that it's the right choice for you.