Singapore: Car ownership certificate costs up to Rs. 88 lakh
Owning a car in Singapore is more expensive than ever. The price of a certificate allowing the owner to drive a large family vehicle in Singapore has increased to a new high of over 146,000 Singapore dollars (approximately Rs. 88 lakh). The new vehicle quota provided through a bidding process has made Singapore the most costly city in the world to own a car.
Certificate of Entitlement
To limit the number of automobiles in Singapore, a "certificate of entitlement" (COE) system with a 10-year duration was implemented in 1990. This means that to be able to buy any automobile in Singapore, prospective owners must acquire a COE. These certificates are auctioned every two weeks, ad the government regulates the number of certificates for sale.
What the costs include
It will cost about 104,000 Singapore dollars (Rs. 63 lakh) to purchase the certificate for a standard medium-sized Category A car. Meanwhile, a Category B fancy car will cost around 146,002 Singapore dollars. As per the new quota, a new basic Toyota Camry Hybrid, for instance, costs about 250,000 Singapore dollars (Rs. 1.5 crore), which includes taxes and the cost of a COE.
Demand for cars
COE prices have risen to record levels for several consecutive months as a result of the post-pandemic rebound. The government is trying to promote the use of a public transportation system, which has been rated as one of the greatest in the world. Meanwhile, people can choose to get a motorbike whose permits costs 10,856 Singapore dollars (Rs. 6.5 lakh).
Out of reach of the general public
The quota system has put cars out of reach for the average Singapore resident. An average monthly household income in 2022 was 10,099 Singapore dollars (Rs. 6.13 lakh), according to the Department of Statistics. However, many support the quota system claiming that it has prevented Singapore from experiencing the same kind of traffic congestion that frequently clogs up other Southeast Asian capital cities.
