The Real Costs
Singapore has some of the world's most expensive cars. Understand COE, ARF, and the full cost breakdown before deciding if car ownership is right for you.
Before diving into the costs, ask yourself these key questions.
Understanding the System
Singapore actively manages car ownership to control congestion and pollution. The result is one of the world's most expensive car markets.
Singapore is only 733 km² with roads taking up 12% of land. More cars = gridlock. The government limits vehicle population growth to ~0.25% annually.
The COE system creates artificial scarcity. You must bid for a certificate just to register a car. With high demand and limited supply, COE prices can exceed S$100,000.
After the COE, you pay Additional Registration Fee (ARF), Excise Duty, GST, and Registration Fee. A S$30,000 car abroad easily becomes S$150,000+ in Singapore.
Singapore's MRT and buses cover 90%+ of the island. The government incentivizes public transport to reduce the need for private cars.
Example: Toyota Camry 2.5L (or equivalent mid-range sedan)
*Approximate prices for comparison. Actual prices vary by model and specs.
The Big Ticket Item
The COE is essentially a "license to own a car" for 10 years. It's the single biggest cost factor in Singapore car ownership.
| Category | Vehicle Type | Recent Premium* |
|---|---|---|
| Category A | Cars up to 1,600cc & 97kW | ~S$95,000 |
| Category B | Cars above 1,600cc or 97kW | ~S$115,000 |
| Category C | Goods vehicles & buses | ~S$75,000 |
| Category D | Motorcycles | ~S$11,000 |
| Category E | Open (any except motorcycles) | ~S$115,000 |
*COE premiums fluctuate based on bidding. Check OneMotoring for latest results.
Bidding Rounds
2 rounds per month (1st & 3rd Wednesday)
Open Bidding
You bid your maximum price; final price = lowest successful bid
Validity
10 years from registration date
Renewal
Pay Prevailing Quota Premium (PQP) for 5 or 10 years more
Registration Taxes
Beyond the COE, you pay significant taxes based on your car's value.
Calculated as a percentage of your car's Open Market Value (OMV):
Example: A car with S$60,000 OMV has ARF of:
(S$20,000 × 100%) + (S$30,000 × 140%) + (S$10,000 × 220%) = S$84,000
Import tax on the vehicle value
Applied on (OMV + Excise Duty)
Fixed fee to LTA
Dealer's profit margin (negotiate!)
Real Numbers
Here's a realistic breakdown for a mid-range sedan (e.g., Toyota Corolla/Honda Civic class).
Example: Mid-range sedan with OMV S$25,000
One-Time Purchase
S$165,000
10 Years Running
S$130,000
Total Cost
S$295,000
That's approximately S$2,450/month over 10 years, or S$82/day!
Usage Costs
Based on engine capacity. Paid every 6 or 12 months.
Electric vehicles enjoy lower road tax rates.
Congestion charges at gantries during peak hours.
ERP 2.0 (New System)
Satellite-based system being rolled out. Distance-based charging may replace fixed gantry charges.
Typical Charges
S$0.50 – S$6.00 per pass, depending on location and time. CBD and expressways during peak hours are most expensive.
Payment
Via CashCard or ERP Card in your In-Vehicle Unit (IU). Ensure sufficient balance!
Operating Hours
Peak hours typically 7:30 AM – 9:30 AM and 5:30 PM – 8:00 PM on weekdays. Some gantries also operate on weekends.
End of COE Cycle
When your COE expires, you have several options. Understanding PARF rebates and depreciation helps you maximize your car's value.
Renew COE (5 or 10 years)
Pay the Prevailing Quota Premium (PQP) to continue using your car. 5-year renewal = 50% of PQP.
Scrap the Car (Deregister)
Send to authorized scrapyard. Get PARF rebate (if within 10 years) + COE rebate for remaining months.
Export the Car
Sell overseas (Malaysia, etc.). Get PARF + COE rebates. Popular for luxury cars with remaining value.
Sell to Dealer / Private Sale
Let dealer handle deregistration. They factor in PARF/COE rebates into purchase price.
PARF (Preferential Additional Registration Fee) rebate decreases each year. Deregister earlier = higher rebate.
| Car Age | PARF Rebate |
|---|---|
| ≤ 5 years | 75% of ARF |
| 6 years | 70% of ARF |
| 7 years | 65% of ARF |
| 8 years | 60% of ARF |
| 9 years | 55% of ARF |
| 10 years | 50% of ARF |
| > 10 years | 0% (No PARF) |
💡 Cars renewed beyond 10 years lose all PARF value permanently.
Depreciation = the amount your car loses in value over time. Most Singapore cars are bought with the intention to deregister at 10 years.
Annual Depreciation =
( Purchase Price − PARF − COE Rebate ) ÷ Years of Ownership
📝 Example:
Car Price: S$150,000
PARF Rebate (Year 10): S$13,500 (50% of S$27K ARF)
COE Rebate: S$0 (expired)
Depreciation = (S$150,000 - S$13,500) ÷ 10 = S$13,650/year
High COE = higher depreciation. Buy when COE is low.
Popular brands (Toyota, Honda) hold value better than niche brands.
Lower mileage and good maintenance records increase resale value.
Sell before Year 9 to maximize PARF. After Year 10, only COE matters.
The sweet spot is typically Year 8-9. You still get decent PARF rebate, and buyers prefer cars with some COE left. After Year 10, you lose PARF completely, and the car becomes a "COE car" with lower resale value.
Hidden Costs
Parking can add significantly to your monthly car expenses. Know what to expect based on where you live and work.
💡 HDB season parking lets you park at any HDB carpark islandwide.
⚠️ Premium CBD buildings (Marina Bay, Raffles Place) can exceed S$500/month.
Parking.sg App
Digital parking coupons. Start/stop remotely.
Paper Coupons
Buy at 7-Eleven. S$1.20/30min.
EPS (Electronic)
Auto-deduct from CashCard at gantries.
Season Parking
Monthly subscription via HDB/URA portal.
Know Before You Go
Singapore has strict traffic enforcement. Here are the fines you should know about to avoid costly mistakes.
+ 4–24 demerit points
Captured by red light cameras at major junctions
+ 12 demerit points
Blood alcohol limit: 0.08% (80mg/100ml). First offense: fine and/or up to 12 months jail
+ 24 demerit points + license disqualification (min. 2 years)
First offense: up to S$1,000 and/or 6 months jail
+ 12 demerit points
Driver and passengers must wear seatbelts
+ 3 demerit points
At zebra crossings or signaled crossings
+ 6 demerit points
Parking without valid coupon or in non-lot areas
No stopping or parking at any time
Plus the ERP charge. If unpaid within 14 days = S$70
Vehicle may be seized. Renew before expiry!
Criminal offense. May include disqualification from driving.
Singapore uses a demerit points system. Accumulate too many points and you'll face suspension.
0-11
Points
Safe Zone
12-17
Points
Warning Letter
18-23
Points
Retraining
24+
Points
License Suspended
⏳ Points are cleared after 12 months of offense-free driving. Probationary drivers have lower threshold (13 points = suspension).
Be Prepared
Stay calm and follow these steps. Knowing what to do can save you time, money, and legal trouble.
Emergency (Police/Ambulance)
999 / 995
Non-Emergency Police
1800-255-0000
Traffic Police Hotline
6547-0000
💡 Tip: Lamppost numbers (e.g., "LP 123/45") help emergency services locate you precisely!
⚠️ Police Report is MANDATORY
You must file a police report within 24 hours if there are any injuries, no matter how minor.
What To Do:
Where to File Traffic Accident Report:
Any Neighbourhood Police Centre (NPC) or online via Singapore Police Force website.
Lodge Traffic Accident Report →✅ You Have Options
If no injuries, you can choose between insurance claim or private settlement.
Option 1: Insurance Claim
💡 Most insurers have 24/7 hotlines & mobile apps - report anytime, even weekends!
Option 2: Private Settlement
Report to Insurer
Within 24 hours via 24/7 hotline or mobile app
Get Claim Number
Insurer assigns a case number
Visit Workshop
Authorized or panel workshop
Assessment
Surveyor inspects damage
Repairs Done
Collect car when ready
📄 Documents Needed:
💰 Costs to Know:
⏱️ Timeline:
1. Get Repair Quotes
Get 2-3 quotes from workshops. Agree on a fair amount.
2. Sign Written Agreement
Both parties sign stating the agreed amount and that no further claims will be made.
3. Make Payment
Cash or bank transfer. Keep proof of payment.
4. Get Signed Receipt
Obtain acknowledgment that payment was received and matter is settled.
💡 Pro Tip: Even with private settlement, take photos and keep records. Some people change their mind later and file insurance claims anyway. Your documentation protects you.
Never Admit Fault
Don't say "sorry" or admit liability at the scene. Let insurers determine fault.
Document Everything
Photos, videos, witness details. You can never have too much evidence.
Report Within 24 Hours
Always report to your insurer within 24 hours, even if not claiming. Use their 24/7 hotline or app - yes, weekends count!
Keep Your Car Running
Regular maintenance keeps your car reliable and maintains resale value. Here's what you need to know.
Oil change, filter replacement, basic inspection
Transmission fluid, spark plugs, brake fluid
Even out tire wear
When tread depth < 1.6mm
Car batteries in Singapore's heat degrade faster
Official service centers (Toyota, Honda, BMW, etc.)
~S$200–500 per service
Third-party mechanics (Kah Motor, Stamford Tyres, etc.)
~S$100–300 per service
Known clusters where you can compare prices:
Engine Oil Change
S$80–150
Synthetic oil
Car Battery
S$120–250
Including installation
4 New Tires
S$400–1,000
Depending on brand
Brake Pads
S$150–350
Per axle (front/rear)
We're building a network of reliable car servicing partners across Singapore. Contact us for recommendations based on your car brand and location.
Know where speed cameras and enforcement are concentrated so you can stay alert and drive safely.
Permanent cameras at known locations. Flash when you exceed the limit.
Mobile speed traps and officers conducting checks. Locations rotate.
Installed at major junctions. Trigger when crossing after light turns red.
Residential Roads
Unless otherwise posted
Major Roads
Arterial roads
Expressways (City)
CTE, KPE, MCE
Outer Expressways
PIE, AYE, SLE, BKE
Use Waze or Google Maps which show speed camera locations and real-time traffic conditions. The SG Traffic app shows live camera feeds from expressways. Always obey speed limits regardless of camera locations!
Bonus Tips
A few more things every car owner in Singapore should know.
Mandatory in Singapore. Get comprehensive coverage for newer cars, third-party for older vehicles.
💡 Pro Tip: Compare quotes from multiple insurers instantly and save up to 30% on premiums!
Compare Quotes Now →Cars 3+ years old need periodic inspection at VICOM or STA. Schedule early to avoid expiry issues.
💡 Pro Tip: PARF vs COE Car Inspection
PARF Cars
(Under 10 yrs)
Every 2 years
COE Cars
(10+ yrs, renewed)
Every year
Inspection costs ~S$50-60. Book online to skip queues.
Your In-Vehicle Unit (IU) is mandatory for ERP. Keep CashCard topped up or link to GIRO for auto-reload.
💡 Pro Tip: Set Up Auto Top-Up
Avoid S$10 admin fee for insufficient ERP balance!
Use credit cards with petrol discounts (up to 20% off). Many expats pump in JB where fuel is 40% cheaper.
💡 Pro Tip: Compare Fuel Prices
Use Motorist to compare petrol prices & find the best credit card discounts across Esso, Shell, SPC, Caltex & Sinopec.
Compare Fuel Prices →⚠️ 3/4 tank rule when entering Malaysia!
Take photos, exchange details, and report to your insurer within 24 hours. File police report if there are injuries.
📞 Emergency Contacts
Police
999
Ambulance
995
TP Accident Hotline
6547-0000
⚠️ Don't admit fault at scene. Let insurers handle liability.
Ensure you have Malaysia car insurance (available at petrol stations). VEP is mandatory for foreign vehicles.
💡 Pro Tip: Apply for VEP Online
⚠️ Exit SG with ≥3/4 tank fuel!
Consider Your Options
Given the high costs, many expats choose not to own a car. Here are your alternatives.
MRT + Bus covers 90%+ of Singapore affordably.
Door-to-door convenience when you need it.
BlueSG, GetGo for hourly/daily rentals.
Monthly car lease without ownership burden.
| Option | Monthly Cost | Convenience | Best For |
|---|---|---|---|
| Own a Car | S$2,000–2,500+ | ●●●●● | Families, frequent travel, status |
| Long-term Rental | S$1,500–3,000 | ●●●●● | Short-term expats, flexibility |
| Public + Grab Mix | S$300–600 | ●●●●● | Singles, couples, urban living |
| Public Transport Only | S$100–150 | ●●●●● | Budget-conscious, city dwellers |
Ready to Take the Plunge?
If you've assessed your finances and a car fits comfortably within your budget, here are your options to get started.
Own your vehicle outright. Best for long-term residents (5+ years) who want full control and flexibility. New or used options available.
💡 Tip: Compare quotes from multiple authorized dealers. Consider certified pre-owned for better value.
Flexible option without the commitment. Ideal for expats on 2-4 year assignments or those who want to try before buying.
💡 Tip: Long-term rentals (1+ year) offer better monthly rates. Ask about corporate discounts.
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