Owning a vehicle in Singapore is expensive and if you want to buy a car, new or used, there are a number of procedures to follow.
3 February 2014| Last updated on 27 June 2017
Owning a vehicle in Singapore is expensive and if you want to buy a car, new or used, there are a number of procedures to follow. The regulations are administered by the Land and Transport Authority in Singapore.
In a bid to control the number of vehicles on Singapore’s roads, the government has imposed measures that make owning a vehicle expensive and buying one quite difficult due to the red tape involved in the process. In addition to the price of buying a car there are additional costs such as road tax, perol and Electronic Road Pricing (ERP) to consider. The ERP can get very expensive during peak hours and it is used by the government of Singapore to control the traffic congestion.
Singapore has a sound public transport system which makes getting from A to B quite easy. This means that you do not need a car for your day to day life. If you are planning on staying in Singapore for only a couple of years, then renting a car may be the most feasible option for you.
Buying a new car
There are quite a few procedures to keep in mind when buying a car in Singapore and we have them listed here for you:
Certificate of Entitlement (COE) – The car dealerships will assist you when ‘bidding’ for a COE. The fee of each successful bid is added to the cost of the new car. This cost is often based on the engine size and the CEO is valid for 10 years.
Open Market Value – This takes into account the purchase price, freight and all other charges for the sale and delivery of the car. The OMV is calculated by Singapore Customs
Registration fees – This is just a basic administrative fee.
Excise Duty – This is an additional tax. It is calculated as a percentage of the OMV of the car.
Goods and Services Tax – This is yet another form of tax and is based on a percentage of the excise duty and the OMV.
Additional Registration Fee – This is an additional 100% of the OMV that is charged on cars with an OMV of $30 000 and higher.
Carbon Emissions-Based Vehicle Scheme (CEVS) – If you own a vehicle with low carbon emissions you are entitled to a rebate of $5 000 - $ 20 000. However if your vehicle has a high carbon emission a penalty of the same amount applies.
These are just the costs associated with the purchase of the vehicle, there are extra costs to consider over and above the ones we have listed. These include a number plate fee, sales commission, road tax and In-Vehicle Unit fee among others.
The OMV will differ on every vehicle that you want to buy and you will have to do the calculations each time. It is also worth noting that banks will only loan 50% of the car’s worth and 50% will have to be given as a down payment.