The government has implemented a range of measures to manage car ownership and usage. These include the Certificate of Entitlement (COE), Vehicle Quota System (VQS), road taxes and Electronic Road Pricing (ERP). All motor vehicles must be registered with the Land Transport Authority (LTA).
Here’s the way “Expat Singapore” describes the system.
COE
The COE scheme has been one of the most controversial and hotly debated public policies ever implemented in Singapore. Anyone wishing to buy a car or motorcycle has to bid for a Certificate of Entitlement (COE).
Each month, a certain number of COE’s are released for bidding and if successful, the vehicle entitlement is valid for 10 years from the date of registration of the vehicle. The scheme aims to peg long-term vehicle population growth at 3 per cent a year.
The catch? COE’s have become so expensive that it is cost prohibitive to own a car. The government wants the people to take public transport.
Registration Fee and ARF
All motor vehicles imported into Singapore are slapped with a customs duty of 41 per cent ad valorem. There is also a Registration Fee to be paid. The fee is $1,000 for private vehicles and $5,000 for company vehicles. In addition, when a car is first registered (whether new or used), an Additional Registration Fee (ARF) of 150 per cent of the car’s Open Market Value is payable.
Electronic Road Pricing
Electronic Road Pricing is Singapore’s latest attempt at tackling traffic jams during peak hours. ERP is based on a pay-per-use principle that is intended to reflect the true cost of driving. ERP has been extended to choke-points on other expressways and major roads in order to alleviate congestion.
In-vehicle units (what many Americans might call E-ZPass) have now been installed in all vehicles and every new car purchased in Singapore must have one.You may only renew your road tax if your vehicle has a valid inspection certificate. Cars between 3 to 10 years old must be inspected once in 2 years; cars older than 10 years must be inspected every year.
It’ll Cost You
So what does all this mean for your dream car? Some estimates (including annual registration fee, import duty, road tax, registration fee and number plates) are: Audi A41.8 (A) $182,000 (including COE), BMW 328 (A) (2.8cc) $238,000 (including COE); Mercedes 200E $201,902; Volvo 940 Turbo Estate 2.0 (A) $160,753.
Either start saving up or make sure your company gets you a car. If not, we’re sure you won’t find the public transport system here wanting!
Traffic in many parts of America and the world is getting tougher to deal with. Some are dealing with it but most are not.
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