Beyond just the aesthetic of a car, there are heaps of things you need to know as a car owner. We’ve compiled a 101 guide for anybody looking to purchase cars in Singapore.

Cost of having Cars in Singapore

Getting a car in Singapore is really much more than paying for the price of the car, there are also other factors that make it really expensive like:

  1. Parking – For HDB season parking it ranges from $65 – $185, Condo season parking varies
  2. Petrol – $2.13 – $2.70 (At time of publication)
  3. Road Tax–Calculated based on
    1. Type of vehicle,
    2. Propellant
    3. Engine capacity
    4. Vehicle age

Payable every 6/12 months depending on your preference.

  1. Car Insurance–Varies based on
    1. Driver age
    2. Driving history
    3. Car value
  2. Vehicle inspections

Based on the age of the vehicle, you can go to Vicom to get  your vehicle tested, check out the table below to see when you need to send your vehicle for servicing

Type Of VehicleBelow 3 years3 to 10 years>10 years
Motorcycles & ScootersNilAnnuallyAnnually
MotorcarsNilBienniallyAnnually

Source: One Motoring

OMV, ARF, PARF and COE Rebates

Open Market Value (OMV) is determined by the Singapore Customs and is the price paid including purchase price, freight, insurance and all other charges related to the sale and delivery of the car to Singapore. To check on your vehicles OMV go here.

Additional Registration Fees (ARF) is a tax imposed on registration of the vehicle based on a percentage of the OMV. This sum is paid on purchase of your vehicle.

Preferential Additional Registration Fee (PARF) is a benefit given to a vehicle owner to de-register his vehicle before its COE expires. It is calculated based on the age of the car at de-registration and varies from 50 – 75% of the ARF.

Age at Deregistration (year)PARF Rebate 
(for cars registered with COEs obtained from May 2002 tender onwards)
Not exceeding 575% of ARF paid
Above 5 but not exceeding 670% of ARF paid
Above 6 but not exceeding 765% of ARF paid
Above 7 but not exceeding 860% of ARF paid
Above 8 but not exceeding 955% of ARF paid
Above 9 but not exceeding 1050% of ARF paid
Above 10Nil

Source: One Motoring

COE Rebates are given when a vehicle is deregistered before it’s COE expires calculated based on the remaining months and days to expiry. For more details take a look here.

Car Depreciation

The Certificate of Entitlement (COE) for a vehicle in Singapore lasts for 10 years. The depreciation of a vehicle here is very much tied to that. To find out the depreciation of your vehicle, just take the OMV of your vehicle and divide it by 10.
Read:  4 Mistakes to Avoid When Buying A Car 

Infographic: Why Are Cars In Singapore So Expensive?

 

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C.E.O @ The New Savvy
Anna Haotanto is passionate about finance, education, women empowerment and children’s issues. Anna has been featured in CNBC, Forbes, The Straits Times, Business Insider, INC and The Peak Singapore. She was nominated and selected for FORTUNE Most Powerful Women conference in 2016 (Asia) and 2015 (San Francisco, Next Gen). Anna has 10 years of experience in the financial sector and is currently a Director in Tera Capital. Her previous work experience includes positions at Citigroup, United Overseas Bank, a regional role in Business Monitor and a boutique private equity firm based in Shanghai. She graduated from Singapore Management University (Finance and Quantitative Finance).