In this city, the minimum cost required to own a car is $76,000 ,and that does not include the Car!!!!
In this urban area, the minimum cost to have a car ownership begins at $76,000, and this price does not cover the actual vehicle itself.
Having a car in Singapore, one of the world’s most costly nations, has always been seen as a luxury, but expenses have recently reached unprecedented levels.
A 10-year Certificate of Entitlement, which is a mandatory license individuals in the affluent city-state must obtain before they can purchase a vehicle, currently has a minimum cost of $76,000 (equivalent to 104,000 Singapore dollars), marking an increase of over fourfold from its 2020 price, as reported by data from the Land Transport Authority.
This amount only grants the privilege of acquiring a typical Category A vehicle, which typically features a compact to medium-sized engine with a capacity of 1,600cc or less.
Individuals desiring a larger or more luxurious vehicle, such as an SUV, will need to spend $106,630 (equivalent to 146,002 Singapore dollars) for the Category B permit, an increase from the previous cost of $102,900 (or 140,889 Singapore dollars).
Additionally, there are the expenses associated with the actual vehicle to consider.
The quota system was implemented in 1990 with the aim of alleviating traffic congestion and curbing emissions in a city-state that grapples with limited space, housing a population of 5.9 million, yet boasting an efficient public transportation system.
This has made car ownership unaffordable for the typical Singaporean resident, given that the median monthly household income in 2022 was $7,376 (equivalent to 10,099 Singapore dollars), as reported by the Department of Statistics.
Ricky Goh, a car dealer from the area, expressed his shock at the price hike, stating that he was taken aback. He mentioned that sales were already performing poorly, and this additional increase would further negatively impact his business.
Wong Hui Min, a mother of two, mentioned that she might have to reconsider her dependence on her car, even though she primarily uses it for her family’s needs.
“I’m constantly on the move, shuttling my children to and from school, as well as to various activities such as swimming lessons and tutoring. My car is essential. Relying solely on taxis or ride-sharing services is simply not practical for me,” she explained.
Wong further noted, “For an average Singaporean family, it takes many years of saving just to purchase a car that serves their needs. I’m uncertain if I can sustain the costs associated with keeping my car over the long term.”
For some individuals, this announcement is just another addition to their ongoing financial challenges. Residents assert that residing in Singapore, a city already recognized as the most expensive in the world, has become exceedingly costly in recent years due to sustained inflation, increasing public housing expenses, and a sluggish economy.
However, proponents of the quota system argue that it has effectively prevented Singapore from experiencing the type of traffic congestion commonly seen in other Southeast Asian cities like Bangkok, Jakarta, and Hanoi. They also highlight the availability of Singapore’s extensive public transportation system for individuals who cannot afford a Certificate of Entitlement.
In this city, the minimum cost required to own a car is $76,000 ,and that does not include the Car!!!!
Alternatively, there’s the possibility of opting for a motorcycle, for which permits are comparatively affordable at $7,930 (equivalent to 10,856 Singapore dollars).
