In Singapore, owning a car is considered a luxury due to the high cost associated with it. The cost of owning a car in Singapore is one of the highest in the world due to a variety of factors such as taxes, import duties, registration fees, and road tax. In this article, we will examine the cost of owning a car in Singapore and whether it is worth it.
Firstly, the cost of buying a car in Singapore is extremely high. The price of a mid-range car can easily exceed SGD 100,000 (USD 73,000) due to the additional taxes and import duties. The additional taxes and import duties are meant to deterpeople from buying cars and to encourage the use of public transportation. Besides that, the Certificate of Entitlement (COE) is also a significant cost factor when buying a car in Singapore. The COE is a quota system that ensures the number of cars on the road is regulated. The cost of the COE varies depending on the demand and supply of cars, and it can range from SGD 30,000 (USD 22,000) to SGD 56,000 (USD 41,000) for small cars and SGD 50,000 (USD 36,000) to SGD 85,000 (USD 63,000) for larger cars.
Secondly, the maintenance cost of a car in Singapore is also high. The cost of insurance for cars is expensive compared to other countries due to the high cost of the car. Furthermore, the high population density in Singapore results in frequent bumper-to-bumper traffic, leading to wear and tear on the car’s components, increasing the maintenance cost.
Thirdly, the cost of fuel in Singapore is also expensive. Singapore is one of the most expensive places in the world to buy petrol, with the price of petrol being around SGD 2.10 (USD 1.50) per litre. This contributes significantly to the cost of owning a car in Singapore, and it is one of the main factors that deter people from owning cars.
Fourthly, the cost of road tax is another expense that car owners in Singapore have to bear. The cost of road tax is calculated based on the engine capacity of the car and can range from SGD 400 (USD 300) to SGD 2,000 (USD 1,500) annually. This cost has to be paid every year, which can add up over time.
Lastly, there is also the cost of parking in Singapore. Due to the limited land space, parking in Singapore is expensive and can cost up to SGD 6 (USD 4.50) per hour in the central areas. Parking charges can also differ depending on the location and time of the day.
From the above, it is evident that owning a car in Singapore is expensive. However, some advantages come with owning a car in Singapore, such as convenience, flexibility, and mobility. Owning a car allows you to go anywhere at any time without being constrained by public transportation schedules. It is also more comfortable and convenient to travel with family or friends in a car, and it provides flexibility in terms of where you can go.
In conclusion, owning a car in Singapore is undoubtedly expensive, but it also comes with its advantages. Whether it’s worth it or not depends on one’s lifestyle and priorities. If convenience, flexibility, and mobility are the top priorities, then owning a car in Singapore is worth the cost. However, if one is looking to save money or have limited use for a car, then using public transportation or car-sharing services might be a more cost-effective option. Ultimately, it’s a decision that each individual has to make based on their lifestyle, budget, and priorities.