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When I arrived in Singapore 9 years ago I already knew that car prices were nothing short of stratospheric. A standard Corolla was just under SGD$100,000 (or about USD$70,000 or $100,000 Australian dollars at the time).

So I have been fine without a car here. Public transport is good and taxis are mostly plentiful.

I think the Singapore model of restricting car ownership is a good one, except I am concerned with their 4% growth rate per year - that’s high.

Anyway, costs have gone down in recent years - that same Corolla costs around $75,000 - a steal.

A recent Straits Times article explains the costs of car ownership in Singapore.

A car starts with an OMV (Open Market Value). This is determined by Customs, and takes into account the cost price, freight, insurance, handling plus whatever.

Added to that is:

• ARF (Additional Registration Fee): 110% of OMV
• COE (Certificate of Entitlement): You have to have this before you can buy a car. The price is determined by an aucttion system. Currently the COE for a Corolla is around $10000.
• Excise Duty: 45% of OMV
• GST (Good & Services Tax): 5% of cost including excise duty
• Registration Tax: $140
• Road tax: $1000 per year for a Corolla
• Transfer fee: 2% of the vehicle’s value

Whew! So our $20,000 Corolla can grow to $75000 with all the extras.

Added to that is:

• ERP (Electronic Road Pricing): A clever system that removes money from a cashcard as you drive under a gantry. Used duing peak hours for controlling traffic flow - oh, and gaining revenue.
• Fuel costs: Around $1.40 a litre
• Maintenance: Ever tried to service a modern car? Ya gotta pay someone to do it.
• Tyres: They change them every year
• And so on…

But Singaporeans love to drive - and love the status symbol of car ownership.

Me, I’ll walk…