On the first and third Mondays of each month, the Singaporean government auctions off Certificates of Entitlement if you get one, you're allowed to own a car for 10 years.
But what was a Certificate of Entitlement?
Alex explained that the typical car buyer would buy "a packaged guaranteed deal from the dealer, i.e. retail price is inclusive of the Certificate of Entitlement".
Transport costs are also triple those in New York, which the EIU attributes to "Singapore's complex Certificate of Entitlement system" – the ten-year license that drivers must purchase to buy a vehicle - which makes car prices "excessive".
In Singapore since 1990, residents have to bid to buy a Certificate of Entitlement, which enables them to own a motor vehicle for 10 years, after which they are forced to scrap the car, export it or pay to extend the certificate.
The authority sent me a chart that could be used to find the cost of any car by calculating its average original market value price and adding the following: additional registration fee: 110percentt of original market value; customs tax: 20percentt of original market value; goods and services tax: 7percentt of original market value; registration fee: $103; Certificate of Entitlement: variable.
Ford Focus five-door Original Market Value: $14,200 Customs duty 20percentt of Original Market Value: $2,840 Additional registration fee 110percentt of Original Market Value: $15,625 Goods and Services Tax 7 percent: $995 Certificate of Entitlement: $11,400 Six months road tax: $360 Registration fee: $103 So with everything factored in, the grand total rings in at about $45,500.
"Most significantly, Singapore's complex Certificate of Entitlement system makes car prices excessive, with Singaporean transport costs almost three times higher than in New York".
Rental cars are especially in-demand in Singapore because obtaining a Certificate of Entitlement, or a license to own a vehicle, is expensive and the government has also placed financing restrictions on car purchases.
A BMW 320i sedan, for example, costs S$223,800 $162,2200), whereas a Certificate of Entitlement (which allows a person to own a car) can top S$60,000 $43,5000) for a 10-year permit.
To buy a car, you will need to bid for a COE (Certificate of Entitlement) and also pay road tax.
