Buying a car in Singapore is challenging and costly due to the island state’s requirements to limit car ownership. Aside from the cost of buying a car, Singapore residents also have to consider the cost of maintaining their vehicles.
At this point, people can rely on mass transport, which is quite reliable. But before making a decision, residents need to consider different factors when they consider owning a car while staying in Singapore. Here are the things that people should take into account.
The Cost of Buying a Car
The cost of buying a car in Singapore is quite high compared to other southeast Asian countries. People who want to buy a car in Singapore also have to consider other aspects in the purchase aside from the price of the vehicle.
One thing that potential car buyers should consider is the certificate of entitlement (COE). The certificate represents a person’s right to own a vehicle for 10 years in Singapore. The certificate is part of the vehicle quota system (VQS) that the country set to control the number of vehicles in Singapore.
Potential car owners should understand that getting a COE is not as easy as going to a government office and applying for it. They should bid for the COE since many Singaporean residents want to own a vehicle. The COE can go up to $50,000 or more, which means they should have enough funds to make a credible bid. And if they win the bid, that is the only time when they can purchase a vehicle in the island state.
Aside from the COE, Singapore residents also have to consider the excise duties, registration fees, price of the vehicle, and vehicle emission fee when they purchase a vehicle in Singapore. So, when you buy a vehicle in Singapore, the cost can go up to over $100,000.
Additional Expenses Related to Car Ownership
Car owners should have deep pockets if they live in Singapore. The island-state is a densely populated country, making it essential for the government to control the number of vehicles plying its roads. Aside from the cost of buying a vehicle, Singaporean residents have to set aside funds for parking, gasoline, and maintenance expenses.
These expenses can discourage people from buying a car in Singapore. While there are areas that offer cheap parking spaces to vehicle owners, these places are limited to specific areas in the country. Gasoline prices are also volatile and can go up at a moment’s notice, making it necessary for vehicle owners to have enough extra funds.
Additionally, vehicle owners should also consider the cost of maintaining their vehicles, which can increase if their vehicle is not the latest model in the market. Another expense that vehicle owners should consider is Electronic Road Pricing (ERP), which manages road congestion in Singapore. Vehicle owners will incur ERP charges when they pass through ERP roads during specific periods during the day.
Renting Is a Good Option
An option that Singaporean residents should consider is renting a vehicle. This is particularly useful if they are only in Singapore for work and return to their home countries once their contract ends. In these situations, they should consider looking for a company offering long-term car leasing services. These companies should offer plans that allow them to rent a car for three to five years. The companies should also have a wide selection of vehicles that people can use in Singapore.
Renting is also a good option for people who want to move around the country without dealing with the numerous costs of owning a vehicle in Singapore. It also allows them to avoid dealing with disposing of the vehicle once they leave the island state.
The Public Transport System Is Reliable
The public transport system in Singapore is among the most reliable globally. And the government continues to upgrade it to provide convenience to its residents as they move around the island state. The public transport system includes buses and trains plying different routes around the country.
The government also has over 200 kilometers of covered walkways that make it convenient to walk to work or school. These walkways also make it convenient for people to visit amenities without dealing with rain or the heat of the sun. Singapore also has dedicated paths for people who want to ride a bike to work.
Buying a vehicle in Singapore is costly and challenging. So, residents should think it through before finalizing their decision to own a car in the island state.