Unlocking the City's Roads: The Astonishing $76,000 Entry Fee to Car Ownership
Owning a car in Singapore, one of the world's priciest countries, has become an exorbitant luxury Costs have reached unprecedented heights, starting at $76,000, excluding the car itself
In Singapore, known for its high cost of living, owning a car has long been considered a luxury. However, the expenses associated with car ownership have recently reached unprecedented levels.
According to data from the Land Transport Authority, the price of a 10-year Certificate of Entitlement (COE), a mandatory license required before purchasing a vehicle in this affluent city-state, has skyrocketed to a record minimum of $76,000 (104,000 Singapore dollars). This amount is more than four times the price it commanded in 2020.
Purchasing the standard Category A car grants the right to own a vehicle with an engine size of 1,600cc or below. However, for those desiring a larger or more luxurious option such as an SUV, they will need to pay $106,630 (146,002 Singapore dollars) for the Category B license, an increase from the previous cost of $102,900 (140,889 Singapore dollars).
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In addition, the expenses related to the vehicle must also be taken into consideration. The quota system, implemented in 1990, aims to address the challenges of traffic congestion and emissions in a city state that is limited in space and has a population of 5.9 million. Despite this, the city boasts an exceptional public transportation system.
The high cost of cars has made them unaffordable for the average Singapore resident, with a median monthly household income of $7,376 (10,099 Singapore dollars) in 2022, according to the Department of Statistics. Ricky Goh, a car dealer in Singapore, expressed shock and concern about the price increase, stating that sales have already been underwhelming and this additional burden will have an even greater negative impact on business.
Wong Hui Min, a mother of two, expressed the need for reconsidering her dependence on her car, even though she primarily uses it for her family's transportation.
"I am constantly on the go, shuttling my kids to and from school, as well as various extracurricular activities such as swimming lessons and tuition. My car is essential for these tasks, as relying on taxis or shared rides everywhere simply lacks convenience," she explained.
"For many families in Singapore, purchasing a car to meet their needs requires years of diligent saving," Wong remarked. He further expressed concern about his ability to sustain the expenses associated with owning a car in the long term. The recent announcement adds to the financial challenges faced by several individuals.
Residents in Singapore, known for being the most expensive city in the world, claim that the cost of living has become exceedingly high over the past few years due to consistent inflation, soaring public housing expenses, and a sluggish economy. However, advocates of the quota system argue that it has successfully prevented Singapore from suffering the same level of congestion as other Southeast Asian capitals like Bangkok, Jakarta, and Hanoi.
In addition to that, individuals who are unable to afford a Certificate of Entitlement can take advantage of Singapore's extensive public transport system. If that is not possible, they can consider obtaining a motorbike, which requires permits available at a relatively affordable price of $7,930 (10,856 Singapore dollars).
